Dubai: Most couples would agree that money should never be an issue in a relationship. Money may not buy love but in these times when economic challenges are evident across all aspects of life, discussing money and planning how to spend it well can strengthen any kind of relationship.
Whether you just started with the relationship or you have been together for years, talking about money should be one of your relationship goals. I have always believed that couples should plan the family’s finances together.
Here are a few insights I can share with you, which, I think, can help in planning your money the right way.
1. Note down your agenda: Know your goals as an individual. Before sitting together, couples should list down their financial goals separately. This will help both of you to write things that are reflective of your own respective needs.
2. Sit together to study your individual lists: As you begin the discussion, try to check out those that are important and indispensable such as household bills, livings costs, travel, financial products like loans and insurance policies and miscellaneous including presents and leisure. You can also categorise these list into short-term and long-term. Once done, it is time to allocate the money to fulfil these priorities.
3. Record your spending: List down everything that you spend on. Create a budget sheet that will allocate your income to your expenses. The sheet will be a clear guide for the couple to decide priorities whilst separating needs from wants.
This can sound a little confusing because some people may think that spending would only involve utility bills, fuel for car and daily necessities like groceries. In planning the finances of your home, you need to list down everything paid — whether it is seasonal, monthly or annual expense you are paying.
4. Get your kids involved: After initially creating the financial plan with your spouse, it is time to let the kids and other members of the family who live with you know about it. Getting the kids involved will allow them to set their priorities early on and keep away from things that will ruin the family’s financial goals. It is best to guide children and involve them in implementing the plan so they will understand why you need to cut costs in terms of using utilities and eating out. This will teach children to be responsible in handling their own finances in the future.
5. Set your financial goals: Setting financial goals may seem complicated but if you are able to write them all down and stick to the list, then everything will fall into place. The goals you set should suit both you and your spouse. It is important to design these goals according to the amount of money and time required for these to be achieved. Long-term goals can be comprised of buying new appliance for the home, paying off credit cards, saving money for a business venture, choosing your kid’s university or at least setting aside for the next quarter’s house rent.
6. Implement your budget plan: Sticking to your budget sheet is difficult at first. You need to have that courage to say no to things that are not included in your plan. On the other hand, make a conscious effort to work out what you and your partner have agreed on in terms spending and saving to prevent misunderstandings and conflicts. When things seem to happen beyond your plan, ask your spouse to sit with you again and determine which areas did you miss to consider.
7. Track where your money is going for the first three months: The budget sheet is a big help when it comes to tracking your expense. During the first three months of your money management programme, you need to list down big and small expenditures. You don’t have to face the computer all the time to make the list. A diary and a pen will ease out the tracking. Tracking will let you know what you are doing with your money.
8. Analyse your spending: After the first three months, you will be able to identify leakages, unnecessary expenditures and other things that affect your budget plan. You should already have managed to get a clear view of your spending activities.
9. Make adjustments: Based on your evaluation, you will soon realise that certain activities should be scrapped, controlled or minimised. You and your spouse can decide to make the necessary adjustments and create a plan of action suitable for your situation. For instance, you might have found out that your utility bills are way too high compared to the recorded normal consumption of a small family. Discuss this with your spouse and children and come up with measures that will reduce your usage for the coming months.
10. Recognise and celebrate small wins: The moment you and your spouse gradually put into action what you planned for, take time to reward yourselves. Allocate some money for leisure and entertainment which you, your partner and others involved in the financial venture will be inspired to continue what you have started.
Money should never be a problem if couples have that strong will to cooperate and work things out as planned. The future is bright for those who prepare for it. Discuss money with your honey and see how your relationship grows with respect, love and inner peace.
Rakesh Rachwani is the founder of Compass Financial Solutions.
