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Financial compatibility is the measure of how well your income and spending habits match. Being financially compatible can help you avoid long-term financial trouble that prevents you and your partner from reaching your financial goals.
If you’re wondering whether you and your significant other are financially compatible, here are a few benchmarks to use.
You’re both getting rid of debt
Carrying debt into a relationship can make things stressful for both the partners and the finances. You and your partner must make getting out of debt a priority so that you can both work towards making your family financially stable.
Try using this free debt snowball calculator if you’re not sure where to start. Whichever method you decide to use, remember that your motivation is to do what’s best for the relationship and your shared goals. Keeping that in mind can help change your mindset around debt and help you become debt-free quickly.
You have the same financial goals
A financially-sound couple works towards achieving the same goals for their relationship. If you think buying a house should be the top priority while your partner thinks it’s better to spend money traveling more, you’re going to have a difficult time keeping your finances in check.
You’re supportive of each other’s income streams
There will be times in your relationship where one partner is carrying a heavier load when paying the bills than the other. In a good relationship, the scale will tip to either side at least once but will maintain some balance overall.
If you’re not willing or able to handle the additional burden of financially carrying the relationship temporarily, you could begin to feel like you’re taken for granted and build resentment.
Consequently, partners may start demanding the one earning less make some changes to their job situation to create more financial stability for the family, but this puts more stress on the lower earner.
If you’re both in stable careers, you may never face this issue. But suppose you’re in a relationship with someone with more dynamic finances, such as an entrepreneur or freelancer.
In that case, you’ll need to work together to ensure they’re helping maintain the household finances in a way that doesn’t leave you feeling overburdened.
You talk about finances openly and often
Couples that hide their finances from one another will end up facing some harsh realities eventually. Don’t let the stigma of shame around money stop you from communicating with your partner about the family’s financial situation.
The relationships that last are built on trust, understanding, and a lack of judgment, so don’t be afraid to talk about your finances, both individual and shared, often.
You’ll begin to realize the undue stress you’ve put on yourself by keeping your money situation a secret and, instead, be able to ensure there are never feelings of resentment or betrayal.
You’re both willing to take on the same amount of risk
Taking a big leap with finances will mean taking on a certain amount of risk. To be a financially-compatible couple, you’ll need to both have the same tolerance for risk, or things might end up going bad quickly.
The risk with finances typically revolves around purchasing assets like property, investing in the stock market, the amount of money put aside for retirement, cryptocurrency, or any other purchase that feels like a gamble.
The bottom line
In conclusion, when it comes to finances, a couple with the same goal-oriented mindset will have a much easier time paying off their debt, avoiding too much spending, and saving for the future.
If you and your partner have different financial goals, it’s time to start talking about your views on money and how they can be better aligned.
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