How to Talk Money Before Moving In Together
Each relationship is an exciting journey, full of discovery and different milestones along the way. One of the biggest steps is moving in together… Which comes with its own special prospects and financial possibilities. In order to fully enjoy these opportunities, it’s important to be on the same page as your partner. At Heights, our goal is to empower you economically. That includes helping to prepare you for sharing a home and all the accompanying monetary obligations. So, before you agree to share a key, discuss these five crucial questions with your partner to better ensure your financial success.
What’s our budget?
This is the very first question you should answer as you take your initial steps forward. Knowing your budget is the key to unlocking other financial questions and laying the foundation for living together.
Begin by calculating your combined income and expenses for a single month. Also take into account any debts and savings you may have. Once you have these simple tasks completed, you’ll have a snapshot of your finances to refer to when looking at potential homes.
How much will each of us pay?
Next stop on the path to moving in is deciding how much each of you will pay for your various expenses.
For joint costs, such as rent, the best way is to divide things equitably, meaning that each person contributes their fair share based on what they can afford. For instance, if one partner makes 30% more than the other, it wouldn’t make sense for both to pay the same amount. Instead, adjust the total based on each person’s income.
For other expenses, determine who pays for what down to the last dollar. This will free you from having to think about these other costs, because you’ll know they’ve been squared away.
Will we merge our money?
Some partners prefer keeping things separate while others prefer pooling their assets. A joint bank account can certainly make things easier, especially when it comes to shared expenses like rent. You can both deposit your portion into the same account, simplifying the process of paying for those combined costs.
It is wise, however, not to cosign on each other’s credit cards or loans. You never know what the future may bring and you don’t want to be responsible for another person’s debt.
What about debt?
When moving in together, it’s also important to talk about your debt. Since eight out of ten Americans carry debt, it’s extremely likely that both you and your partner will have some. An open conversation about debt is a great opportunity to be honest with one another about your financial history. Additionally, it helps you better understand your partner’s monetary values and see how they align with your own. By knowing about each other’s debt, you will be armed with even more knowledge necessary in helping you craft a solid budget. Plus, this information is key towards keeping your relationship on the steady path towards economic success.
What are our financial goals?
Once you have some of your other financial questions settled, such as a budget, how you will divide your expenses and debt, it’s time to think about the economic road ahead as a couple. Sharing in a financial future is one of the most exciting aspects of moving in with each other. Brainstorm goals that you can invest in as a team, such as creating a rainy day fund, encouraging each other to pay off debt or saving for a vacation. Whatever you decide, work together to strengthen your relationship as well as your finances.
Heights Walks the Extra Mile
As you travel forward, remember to enjoy each part of this unique and thrilling journey together. It’s not every day you find someone you want to share a home with. By answering some simple questions, you can lay the groundwork for economic success, ensuring that moving in is financially rewarding, which will only enrich your partnership. And remember, as you continue down the road of your relationship and life, Heights Finance is always here. As your financial partners, we go that extra mile so you can achieve your monetary goals. So, if you’re in need of a personal loan or curious about debt consolidation, stop by one of our friendly local branches today, including Covington Credit, Southern Finance, Quick Credit or Heights Finance.