Marriage is a life decision that brings with it many implications: sharing dreams, activities, projects, responsibilities and as if that were not enough to share money. The magic of falling in love, emotion and enthusiasm to start this new stage leads spouses to believe that the only things to share are feelings and thus exclude financial compatibility from their list of requirements.
We mistakenly believe that money does not matter when two people love each other, but reality shows us that financial conflicts are one of the main causes of divorce: lying about wages, recharging financial obligations in one person, considering money as A symbol of power in addition to disagreements in investment and saving can make the most special blessing a true torment.
Family finances have a cycle that no couple should ignore
In the first place we find the accumulation of capital that is nothing other than that moment in which the couple begins to build their assets basically merging income, savings and the occasional extra income.
The second part of this cycle includes an increase in capital because it is at this stage where couples decide to share expenses and incur in purchases of common goods: house, car, farm, etc.
Once there is a growth in family assets, there is a need to preserve the built capital and with this the appearance of the third phase.
Finally, the new family faces the fourth and final stage
The Transfer of Capital, which is undoubtedly the litmus test for financial compatibility because this is where the pros and cons of saving or investing money are evaluated and obtained A consensus between the parties.
In order to overcome these four stages of the financial life cycle of marriage, it is important that you and your partner take these recommendations into account before you say yes:
Detect common financial objectives
Your partner will be your most important financial partner, for this reason the goals and dreams you wish to achieve must be compatible.
Creating a culture of savings will help them protect the capital they have built. It is essential that the money saved allows them to achieve their short, medium and long term objectives as well as to create a contingency fund that allows them to be prepared for any economic crisis.
Be honest with your financial situation
Trust is key in a couple. Try to be clear when talking about your income, your investments and your debts. This will identify common priorities and prevent them from getting involved in unnecessary misunderstandings.
Align in Investments
It is important to know how risky your partner is in financial matters. If you are one of those who invest in volatile shares and your partner prefers to do so in real estate, be careful! If the money to be invested is part of the family assets, it is favorable that they make a joint decision in this regard.
Make a distribution of responsibilities
The distribution of family expenses must be clearly defined. Ideally, share expenses and avoid dividing them so that neither party feels disadvantaged.