Whether you’re recently married, or you’re approaching your 30th anniversary, you know that money can be a topic of controversy among couples and families. Even in the most perfect relationships hardships happen, and decisions have to be made. At Peoples Bank & Trust, we think there is a helpful and long-term tool that can help you have less conflict and more compromises while contemplating both goals and solutions. The answer is relatively simple, talk it out, however, the complicated part is how.
The first thing you need for a successful money discussion is an agreement between all persons to refrain from defensiveness and accusation. With this mindset, you can openly consider both positives and negatives of past and future financial decisions. Each month set a time where you and your spouse or family can get together and determine your current financial landscape. Discuss the highs as well as the lows, and gain perspective from each individual on where they feel the money is best spent or saved. Once the past month is discussed, start making a list of any suggested changes for the upcoming month.
The list should detail any adjustments that are going to be made, and the desired outcome they hope to generate. The meeting participants can then choose which, if any, changes are warranted and should be enacted.
This meeting not only keeps a continuous dialogue with you and your spouse or family but also allows you to have a fresh look at your finances every month, ensuring all bills and saving initiatives have been completed before the meeting takes place.
Other great tips we suggest to continue improving your money management:
- Calculate your net worth every six months. This will help you with the large scale view of your family’s financial well-being and see where you can find additional ways to continue to grow.
- Set new goals when you surpass the old ones. The worst thing you can do for your finances is to do nothing. If you knock your latest goal out of the park, Peoples Bank & Trust challenges you to make an even more challenging goal and find a way to make it happen.
- For spouses, have joint and individual accounts. By structuring your finances together and apart you can ensure your joint account holds all the necessary funds for any household expenses, while each person’s private account can be used at their own discretion.
- Designate a bill payer. Determine who in your house will be in charge of paying the monthly invoices and balancing the checking account throughout. By allowing one person to be responsible for this task you can ensure bill are not able to be missed due to misinterpreted communication.