![]() The result? Without clarity around money flow, especially when you’ve got two partners making purchases, we overspend when we didn’t mean to, and savings goals are merely an afterthought.Ī more effective approach is to implement a forward-looking cash management strategy. When you’ve got one bucket where your paycheck comes in and expenses go out, paying attention to how money flows in and out of your lives is difficult. Who can blame them when traditional budgeting is a backward-looking approach that's all about judging ourselves regarding the money that we already spent?Īnother problem arises in how most people set up and manage their household income by having direct deposits flow into one primary checking account. The majority of successful, dual-career couples don't bother with budgets. WHY TRADITIONAL BUDGETING & MONEY FLOW DOESN’T WORK By having an open dialogue about money, you'll be able to work together to create a spending and savings plan that suits both of your needs.Įven those of us who are 10+ years into marriage will benefit from scheduling regular money conversations with our spouse so that we can talk openly about our financial goals and what we want to achieve individually and together. Openness and honesty from the start of your financial journey together provide a practical foundation to fall back on when money arguments inevitably crop up in the future.įrom there, regular money dates allow you to hold each other accountable for your family's financial health and check in on your joint progress toward future goals and dreams. We’re only human, and we’ll each have particular strengths and weaknesses when managing our money. It’s essential to listen to your partner’s answers to these questions with empathy and understanding. How do you typically spend your time and money now? What values are these behaviors reflecting?Īre there any changes that you’d like to make? ![]() What events or situations reinforced your beliefs about money or caused them to evolve? During your first money date, consider asking one another some questions that get to the heart of your personal money story: These recurring “money dates” initially provide space to discuss your relationship and upbringing around money and your current income, debts, and spending habits. With this statement of intentionality as our inspiration, one of the most important things you can do when you first get married or find yourself in a committed relationship is to talk about your finances early and often. Covey says, "beginning with the end in mind means to think about how you would like something to turn out before you get started.” In his bestselling book The 7 Habits of Highly Effective People, Dr. This framework allows you to communicate more effectively with each other around money decisions so that you can be confident the way you’re using your financial resources is genuinely in line with what you value most. Today, I’m sharing a simple cash flow framework for combining and managing your finances as a couple. It's essential to make sure that you're on the same page regarding your finances and that you have a plan for how you'll handle money together. It is such a happy and exciting time for them in their lives - they're moving into their first apartment together, and over the next year, they have goals of enjoying lots of travel as newlyweds.Įven before marriage, when you're in a committed relationship, your financial life can quickly become intertwined with someone else's. This past weekend, I witnessed them tie the knot in a beautiful ceremony overlooking Mt. I think about how this is just beginning for my younger sister and brother-in-law. Their dreams and goals as individuals, as a couple, and as families are moving targets, constantly evolving and adapting to the circumstances. They're getting married, traveling the world, buying houses and investment properties, starting a family, moving cities, changing jobs, raising young children, and everything in between, each phase as transient as before. Many couples I work with are millennials in their first 5-10 years of marriage, and life is happening fast.
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