Shared financial vision with your Spouse
When discussing your financial future together, you should keep in mind that your goal is not to persuade your spouse but rather to understand how they feel on the matter.
To agree on a shared vision, you need to listen both to the other person’s opinion and understand where they are coming from. Once that has been established, you can start setting some long-term goals. These should have specifics that are tailored to your business’ needs.
As you look at the big to-dos in your life, start setting specific, actionable and measurable goals to accomplish all of them. You’ll need to make a down payment for their home, save up college funds for the kids and set up retirement savings.
The next step is to work out how you’ll be able to achieve all of these goals and turn your vision into reality. This can be done by working out a system with monthly goals and planning ahead on the budget.
What is a Shared Financial Vision?
A shared financial vision is a common understanding between two people about their goals and responsibilities in managing their finances. It’s important for couples to set this vision for themselves to avoid potential disagreements.
Some couples may not even know where they stand financially, so it can be helpful to take an inventory of what you have, what you owe, and how much money is coming in.
Giving Yourself Time To Create A Shared Vision For Finances
Money inevitably becomes a point of contention in most relationships. However, having some kind of plan can go a long way to help combat the inevitable arguments that will arise.
Each member of the couple needs to feel like they are on equal footing and that both of their opinions are heard, which is why it’s important to set some ground rules for financial decisions before you get married.
You can go with financial planners as they offer guidance on issues related to finances through consultations with potential customers.
They do this by providing tips or information on what to do in order to maintain a good credit score, pay off debt, invest money wisely, and more. A financial planner may also advise clients on what not to do – such as bad habits that can cause further financial problems.
10 Essential Tips for Building a Shared Financial Vision with Your Spouse
Tip #1- Decide on the Financial Goals You Want to Achieve Together
In order for you and your spouse to achieve any financial goal you need to have shared values about money. It is important because no matter what happens there will be disagreements or differing opinions on how you should handle your finances since this will affect the other person as well
Financial goals can be simple or complicated, but they should always be something that both spouses agree on. If you have shared goals then it will be much easier to reach them because you can work together. Find out what your partner wants from their future and work towards it together.
Tip #2 – Have Regular Money Conversations
We’ve all been there: One of us is doing a lot better than the other financially, and that cannot go unnoticed. This is a tough subject to talk about, but it’s important that we do. It can be a great opportunity to teach one another about your finances and how different financial decisions will affect your lives.
Few points to follow the conversations in a productive way with your partner.
1) Start with something meaningful
2) Stick to facts
3) Be open-minded
4) Find common ground
Tip #3 – Make Financial Decisions Together
If you are in a relationship, you might be wondering what the best way to share your finances with your partner is.
Some people believe it is best to keep their finances separate. However, this means there are two sets of books to keep track of and two sets of account passwords for each other. It can be confusing and frustrating if one person wants to make a joint purchase that the other person doesn’t want.
Others believe it is best to have joint accounts for everything – checking, savings, investments etc. This prevents confusion but also makes it easier for the other person to spend more money than they saved when they were not expecting it.
One way couples can navigate this dilemma is by making joint account plans together before committing any money or signing any paperwork.
Tip #4 – Share What You Can Afford to Spend with Each Other
Budget-talk is an important discussion between your partner and you. It is a conversation that needs to happen regularly as your financial situation changes.
It is important to share what you can afford to spend with each other. Money is the number one cause of arguments in relationships. After all, it’s hard to spend someone else’s money, right?
The best thing you can do is set up a budget together and make sure that you are spending on the things that are most important to both of you.
If you are the breadwinner in the family, it’s important for you to be upfront about how much you can afford to spend on each item.
Tip #5- Be Patient With One Another When Making A Decision To Buy Something Expensive
For those who are looking for a way to save money, sometimes it is best to not buy anything at all. This includes expensive items like houses and cars. While these purchases may seem like a good idea, the buyer will end up spending more money in the long-term.
This is because there are other expenses that come with buying an expensive item such as insurance and upkeep. There will also be long-term costs such as maintenance and any repairs that might be necessary down the line. The buyer should keep this in mind before making any decisions about what they should buy next.
Tip #6 Make an Agreement about Your Financial Priorities and Goals
You should have a discussion with your partner about money. It will help you to align your goals and priorities in life.
You can start by talking about your values and how they relate to money. What are the main reasons for you to work? Do you want to be financially independent or do you enjoy being a stay at home parent? How do you see your future in terms of finances?
If this is too difficult, then discuss what is bothering you most. Is it debt, saving for retirement or college, children’s education, building a house? Fill out the following grid:
Financial Priorities and Goals
- Money Worries
- Saving for Retirement or College
- College Education
- Children’s Education
- Building A House
Tip #7 Budget allocation strategies with your partner
If you are frequently arguing over money, one solution to help you achieve a more agreeable budget allocation strategy is to figure out what each partner values the most. This way, the partner with the higher salary will be able to buy something that they value and the other partner will get their desired purchase.
The best way to do this is by using what we call a “budget allocation wheel”. On this wheel, we list all of our household expenses and then we divide them into three sections.
The first section on the wheel is for both partners’ desired purchase (the things that they like).
The second section is for both partners’ long-term goals (shelter, retirement savings etc.).
The third section includes all of our monthly bills and other financial obligations (mortgage, utilities, property taxes, etc.)
Tip #8 Create a Regular Budget Together and Decide Who’s Responsible for What Spending Categories
A budget can be a good way to illustrate how much money is coming in and going out every month. It also forces people to have a conversation about their spending habits and what they really want from life.
To create a budget, you should list all your income sources and your expenses in different categories. And then assign a percentage of your income to each category so that you know what percentage of your income is going towards these expenses.
Tip #9 Guard Against Overspending by Avoiding These 4 Common Pitfalls
Some people have a tendency to buy things they don’t need. This can lead to overspending and the accumulation of credit card debt. It’s possible to make a budget and stick to it, but it’s not always easy.
We should never forget that credit cards are just a tool for borrowing money. We all know how much information can be found on the internet about debt and how to avoid it. And if you are not sure, there are plenty of other resources available to help you navigate your financial life.
Avoiding These 4 Common Pitfalls
2) Credit card debt
3) Not setting a spending limit
4) Buying on impulse
Tip #10 Review and Update your finances Regularly
It can be helpful to set up a system so you can both review your finances regularly together. One option would be for one spouse to create a budget and share it with the other spouse.
Another option would be to watch your spending together online or check bank accounts together.
Your partner may not agree with you on every decision you make, but if you are able to communicate openly, then there should be no problem.