Share past financial problems, failures, current debt, and credit scores. No ego in spending together with his or her money on eating outside, entertainment, and travel. Sharing income and expense details are associated with higher levels of marital satisfaction and lower levels of divorce. If one spouse contributes more to joint expenses while maintaining separate personal funds, don't think of it as a sense of inequality within the relationship and create a sense of sharing for your kid's growth and future, because love made kids from you.
“Yours, Mine, and Ours” method, is the use of a combination of both separate and joint accounts, meaning that they have a common account for shared expenses and individual accounts for personal expenses. If she wants to live in a bigger home or dine out more often—then it might be time for her to kick in more than a 50% share. Eg. household expenses to divide.
A blended family is defined as the parents and all their children from this and all previous relationships. Going to college or university is expensive, and if you have to pay for it, it might be a good idea to look into that before you decide to have a blended family. Make sure you decide on the allowance for your children or how the college-going children spend the money given to them.
Establishing the right boundaries and space can make it easier for children who have never lived together to adjust to the new environment. If you or your children have a hard time adjusting to the new family dynamics, couples therapy or family therapy can help.
Create a joint account for mutual expenses. Plan and Split income according to household expenses. Plan a budget and strictly follow it for household expenses such as groceries and utilities, mortgage, Educational costs, Medical bills, Auto insurance, and maintenance. Depending on how much debt you or your partner have, you may have to rethink your investments and the risks you are willing to take. Open communication about finances by sharing will facilitate and minimize disagreements over money management are more likely to occur in relationships with joint accounts, which can strain the marital relationship.
If both partners are earning, they may have a right to lend money, but doing it without calculating one’s own retirement can jeopardize their goals. If your partner is the only earning member in the family and he has taken several loans, it can not only threaten your current lifestyle but also your future financial situation if debts spiral out of control. If he loses his job or suffers a salary cut or business losses, he may be unable to repay and the interest burden can escalate, or your assets can be seized by the bank to repay the loan. Ideally, you should retain your own individual incomes to retain financial freedom and form a joint account where you can contribute to shared goals and expenses.
Every couple should have separate bank accounts, these accounts should have a certain percentage of your income as savings or child support paid by the previous spouse to separate the amount. As the kids get older, family and finances will need to be updated. Use a joint account so that both of you can access household expenses, vacations, etc.
You can have family meetings where you can explain the situation to the kids and keep things informal so that kids look forward to such meetings. Parenting together, not separately, stay connected to all your family members. Make sure that you only buy what you can afford. Decide your budget for special events beforehand for holidays or birthdays.
A well-balanced budget can help reduce money-related stress and make it easier to manage finances. One of you may be good at managing day-to-day expenses such as grocery, phone bills, utility bills, etc. The other may be good at planning investments, stocks, property, etc. If you both know your strengths, focus on them. Do not buy anything together. That goes for houses, cars, and furniture, and especially checking accounts. Yes, you love him or her. But if things go sour, each takes their own. you may find it difficult to borrow independently. So keep one credit card that’s in your name only, even if you use a joint credit card for your household purchases.
DON’T share debts, unless it is for kids.
Once the essential expenses and savings are defined, they can take a joint decision on how much money they can lend or contribute to their families and friends. They should lend the money only if they are willing to write it off completely.
In a study by Kansas State University, researchers found that arguing about money is “by far” the top predictor of whether a couple will get divorced. Those arguments tend to take longer to recover from and are more intense, researchers said. They also often last much longer than fights over the kids, sex, or in-laws.
Comments
Post a Comment