Moving in together is a big step when in a serious relationship. It can be nervewracking, but who doesn’t like the idea of being in love with your partner forever? However, contrary to the old Eagles song, love will not keep you alive.
As moving in will require both sides of the party to share expenses, it does make sense to combine finances. If you and your partner are thinking of taking this next big step in your relationship, then read on because this one’s for you.
Combining finances sounds simpler than it actually is. As this is a step towards bigger commitments, it goes beyond just putting both your income into one bank account.
Here are some of the things you may want to consider before combining your finances:
1. Level of trust
Like all other forms of relationships, trust is a fundamental foundation when combining your finances. As you both will have access to the joint account, do you trust your partner enough to touch your finances? If you know deep down your partner is just as trustworthy as you are, then combining finances would be a great feat.
2. Level of commitment
Additionally, the level of commitment must also be considered. Since this is a big step, how committed are you in your relationship? If you don’t think your love will last more than 6 months, then consider holding off combining your expenses for now. But if your level of commitment is one that will lead you to spend your retirement together, then go forth and combine.
3. Every party’s financial situation
You might also want to consider discussing each other’s financial situation. Is there debt that needs to be paid off? How close are you or your partner from going completely broke? When you know each other’s financial situation, you can create a plan to overcome these pressing financial issues.
4. Each one’s spending habits
You also might want to consider each other’s spending habits. Is impulsive shopping an issue? Do you or your partner have an expensive habit, like excessive drinking or smoking? Do you or your partner give in to the temptation of eating out all the time? Laying everything on the table will help you and your partner decide if combining finances will be beneficial for you both.
5. Financial goals
Finally, you may also consider your short-term and long-term goals. How much savings do you both need? How much emergency funds should you set aside? Is buying a house one of your goals together? Do your long-term goals match? If they don’t, then maybe consider finding common grounds before committing to combining your finances. Fully understanding what your goals are will help you come up with a clear strategy to achieve them together.
When it comes to achieving your financial goals, Frollo can help you manage and track how much more you’ll have to achieve. Head on over to the Goals feature on Frollo to set your goals within 2 minutes.
The Bottom Line
Combining finances is a big step in a relationship and definitely one that you and your partner will have to talk about. We suggest spending at least 30 minutes with your partner to sit down and talk about these factors. Think of it as a date but with finances as the focal point of your discussion. Sure, this may cause some disagreements, but it would be worth having the argument now than to have a big fight when you’ve already combined your finances. By considering the factors listed above, you and your partner can decide if combining finances is the right step for you.
Stay tuned for our next article on how you and your partner can combine your finances.
Did we miss any other factors that you’ve considered before combining finances with your partner? Let us know! We’d love to hear from you.