A relationship will impact every aspect of your life. It can change how you view yourself and if you pick the wrong relationship, you may find that it has a negative impact on your levels of self confidence and feelings of self worth. It can also play a huge part in determining your future. Depending on your relationship you might have children or travel the world as a couple. It all depends on what you both want. Perhaps one of the most overlooked impacts of a relationship is the financial changes that it will bring. So, let’s dive in and explore how a relationship can change your finances completely.
Living Past Your Means
First, it’s possible that a relationship can cause you to live past your means. There are a few reasons why a relationship might cause you to do this. You might have the desire to give your partner as much as you can, regardless of financial limitations. This is a common feeling for people who adore their partner. You may even feel guilty if you can’t afford everything they might want or feel they need. You just need to remember that no relationship is worth going into debt over. It’s also important to consider that if they love you, they’ll never make you feel like you need to try and buy more than you can afford. This doesn’t mean that you shouldn’t try and boost your income by gaining a promotion, a new position or even starting your own company when you’re in a relationship. You absolutely should and regardless of your personal situation, you should take steps to keep moving forward with your professional goals. But you should never feel like this is a requirement to keep your relationship healthy and your partner happy. You should do this for yourself, for both your futures, or not at all.
Kids
Relationships can bring kids and kids, like it or not, are one of the most expensive financial burdens in your life. You’ll never realize the true cost of having kids until you become a parent. They impact everything from your choice of car to the money that you have to save for the future. There are also always going to be more unexpected costs that come with having kids. This means that if you do have children with your partner budgeting becomes more important. This doesn’t mean that you do need to remain frugal. But you need to be more careful about where you are spending money to ensure that you aren’t wasting it. Particularly, if you want to give your kids the best quality of life possible. There are some great free accounting apps that will allow you to keep track of your spending each month as a parent.
The End Of A Connection
Arguably one of the biggest financial burdens from a relationship will come if or when one ends. Don’t forget that almost 50% of all marriages now end in divorce. As such, it’s in your best interest to prepare for this possibility. One of the ways that you can do this is with a prenup when you get married. This will ensure that there is a set amount that each partner agrees to if you do get divorced. Of course, if you’re not married the situation can be a little more abstract. You may require the services of property settlement lawyers. Particularly, if you have bought real estate with your partner in the past.
Debts
Next, you should consider the impact that debts can have from a relationship. The debts of your partner will impact you if your relationship does not end. It doesn’t matter whether they assure you it won’t because debt collectors don’t see it this way, particularly once you get married.
If you are worried about this, the best step will be to help your partner with the debts that they have accumulated. There are lots of options here. For instance, you can explore a debt consolidation loan. If they are not eligible, there are alternatives and you should always start by encouraging them to speak to their creditors.
Purchasing Property
It’s worth noting that it’s not all doom and gloom when it comes to the financial changes that will impact your life when you’re in a long term relationship. A relationship means two incomes and this will provide you with a better situation to invest in property. You should leap at this opportunity too because if you are buying property then you’ll have a secure investment that you can continue to grow in the future. Ideally, you need to save about 20% for the deposit of a home. This is a lot easier if you have two incomes to save with.
Shared Accounts
Finally, it’s worth thinking about the issue of shared accounts. If you are in a long term relationship, it’s likely that you’ll have at least one shared account. But you can only do this if you have the same financial mindset. Particularly, if one of you is earning more than another. A shared account with different financial mindsets will lead to a lot of arguments and quarrels about finances. Particularly, if one partner is spending more than the other thinks they should be. If you know if you have a different financial mindset to your partner, then it’s best to keep your accounts separate. At least until you can agree on a budget that suits you both. One of the best ways to deal with this is to have three accounts. There can be one for each partner and another shared for bills with an agreement to add in a certain amount each month.
We hope this helps you understand some of the ways that a relationship can alter your financial situation. Do be aware this isn’t always a negative. The right relationship can strengthen both of your financial situations and help you build towards a brighter future. But you do need to watch out for the warning signs that your partner may not be taking as much care of their money as you are. Ultimately, if you’re in this for the long term, that will begin to impact your world no matter what.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)