When it comes to dating, a lot of the outdated, gender normative, etiquette that was once nonnegotiable, grows less and less important by the year.
It's no longer necessary for women to get married, men don't always pick up the dinner bill, house hold chores are shared, and communication is open in a way that was not a given for past generations.
Another perk of changing relationship dynamics should be the ability to have an open conversation about finances with your romantic partner. We've come too far to leave finances out of the equation when it comes to partnership, whether that's a restaurant bill or your daughter's college tuition. So no matter what stage of your relationship you're in, be sure to start a dialogue.
At the Beginning of the Relationship
By date three, you and your partner are certainly not discussing how you might finance a house, but that's not to say you can't get a gauge on values when it comes to money. This doesn't necessarily have to be a conversation as much as an observation.
"Ask them, 'If you won the lottery, what would you do?' I think that tells you a lot about a person," says financial planner, Erin Voisin. Telling questions like these are plenty useful for getting to know someone in a holistic way, and money is just a little part of that.
"Do they do things that are irrational or impulsive?" asks Reshell Smith, a second financial planner. "I also think people's attitudes about money comes from their family. Talking about family, parents and how you were raised — you can get an idea from there."
When you're still feeling each other out, it's good to have an understanding of the kinds of things your partner is willing to spend money on. You don't have to ask how much, but knowing if they're more inclined to drop their paycheck into a Planned Parenthood fund, a family vacation, or a pair of Nike Frees is definitely valuable information.
When the Relationship Gets Serious
Serious is, of course, a relative term. Plenty of couples take years to say "I love you." Some take weeks. Some think open relationships are easier than committed ones. Some swear off marriage. But once you feel like you're genuinely committed to another person, there are certain money questions that need to be asked.
Voisin recommends making time to talk about the highs and lows in your economic histories. Did you invest in something stupid? Do you impulsively shop? Are you frugal to a debilitating point? "Talking about financial successes and failures is important," she explains.
If you plan to continue your relationship, you'll get in the habit of spending money on and around one another quite a bit. That means you need to know about major debts or serious trust funds (yes, this includes a conversation about credit score).
When You Decide to Move in Together
This is quite possibly the most difficult test any couple undergoes — only the strong survive. Cohabitation can entirely change the way you relate to a person. Not all good friends make good roommates, and not all good romantic partners do either.
From a financial angle, living together, of course, implies splitting the cost of a home — but it also implies dictating what is mutually owned, and what is personally owned.
"If you both are living in separate places, you probably have two washers, two dryers, two TVs. These are things you can sell to raise money for a wedding or to help pay down debt," says Smith. But do you decide who has the better version of each? Whose debt are you paying off? The yours, mine, ours conversation is not an easy one.
It's recommended that you test out a joint savings account where you can deposit mutual funds. Not only does this make the financial conversation a little bit more fluid, but it also helps with division of cash when you split. Don't overthink it, but this is, of course, always a possibility.
When You Get Married (or make a long term commitment)
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Ok, so you survived the cohabitation test. You can actually live within the same four walls, and you still like each other — even love each other.
At this point, you should be a little more secure when it comes to sharing. Theoretically, you'll have mutual accounts 'til death do you part. We're not saying this is set in stone — but it is some form of guarantee. With your commitment, however, come conversations about retirement funds, kids, and longterm housing. That's tough stuff.
Viosin recommends discussing dependency. While of course different couples support each other in different ways, it's important to make sure the full financial burden doesn't fall on one party. "It's making sure that each person has enough … and having that conversation about what does 'taken care of' actually mean," she says.
There are plenty of ways of validating a relationship in the long term, and marriage doesn't have to be one of them. But, if you've committed to spending your life with someone, you should feel that you're both shouldering part of the financial weight, and that you both feel secure. And unfortunately, like everything else, that's going to have to be a discussion.
When Your Family Starts to Grow
Happy Young Attractive Mixed Race Family with Newborn Baby. Tennesse Fertility Institute
Not everyone will decide to have kids — families can be defined in many different ways. You might have nieces and nephews close by, or in laws who have to move in. You might get a dog. You might adopt. You might nurse a thriving garden. Regardless of the entity, odds are, you will become financially responsible at some point for someone besides your partner.
"Once you have kids, your lives will generally revolve around them and their education," Huffpost reports. You and your partner need to take that in stride. You'll want them to have appropriate clothing, healthy food, and top-notch toys, but you'll also pour money into their education, health care and personal happiness.
"Those are conversations you definitely want to have ahead of the baby coming, because that's a very short time frame," says Smith.If we're just talking about a dog here, the budgeting falls on a smaller scale, but regardless, it's hard factoring another body into your financial plans. On the other hand, it's a privilege and you ought to appreciate the fact that you've got someone around to brave the financial world with you. Money talk may never come naturally, but with the right person, we promise it will be worth it.
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While it's possible to be frugal with many aspects of your lifestyle, there are certain events and possessions that will require you to spend a substantial amount of money. Thus, a wise course of action is to begin saving well ahead of time while thinking about your goals for the future. This way, you'll be able to maintain a stable financial state even when faced with those large expenses. The following are a few major life purchases that you should plan for.
Marriage is a joyous occasion that many people look forward to. However, a wedding can be quite expensive, often costing thousands of dollars. Your family and your future spouse's family will often contribute to covering this, but you should still prepare to spend a good deal of your own money on the ceremony. If you're in a serious relationship and are considering marriage, you should plan where the funds for the wedding will come from and take the necessary actions to accumulate them. It's also crucial to discuss financial matters with your partner, since your property will merge once you get married.
A New Car
Automobiles remain one of the top modes of transportation. As a result, you may want to purchase a new car at some point in your life. Although you may be fine with an old or used vehicle at present, you may one day be motivated by a desire to acquire something nice for yourself or by the practical needs that arise as you raise children. Whatever the case, obtaining a new car is a major life purchase that you should plan for.
In addition to setting aside funds to eventually put towards a vehicle, you should also aim to build you credit score. This is because your credit score will determine your available car loan options. The higher your credit score, the more you may be able to lower your interest rates on your car.
Owning your own residential property is a worthy objective that you may hope to make a reality one day. Ideally, you should save about 20 percent of the total cost of a house before you buy it. This will allow you to make a larger down payment and thereafter face less interest on your mortgage.
As with acquiring a car, the mortgage options that you'll have can change based on how strong your credit score is. You'll want to increase your score as much as possible in the years leading up to buying a house so that you can get more favorable interest rates. In addition to contemplating down payments and mortgages, you must also remember that you'll need to deal with property taxes, insurance, maintenance and repair fees, and sometimes homeowners' association charges.
It's also necessary to hire a real estate agent to help you with the buying process. There are different types of real estate professionals. You should know how to distinguish between buyer's agents and seller's agents so that you can obtain favorable prices on homes as well.
Many people live together before getting married and have begun the process of combining accounts and sharing responsibilities. However, some people wait to do this only after marriage, and others wait until they're married to live together. Whichever path you've chosen, it's still crucial to know a few tips to manage money together as newlyweds to determine where you should begin and how you can remain on the same page.
Discussing Money Motivations
As we begin to share money with our significant other, we soon find out what one person may rank as a priority regarding money and the other may not. As such, sitting down and discussing money motivations is important. Two people who cannot agree on how to handle money may cause serious issues. This should include:
- How to deal with money following payday. Is a percentage put into savings? Is that the day to splurge on dinner, drinks, and more?
- The frequency and size of payments made to debts. Some people like to pay minimums, whereas others pay in full or make double payments.
- What do you each consider money well spent? Is it a new 70" 4K television? Is it an investment? Is it paying as much debt off as possible?
- How do you go about consulting each other before making purchases over a certain amount?
Establishing Financial Goals
After you evaluate the motivations behind your money and how it should be spent, you'll need to spend time together hashing out financial goals. As newlyweds, there are certain things on your list that you're going to want to save for. How do you go about that? How much of each paycheck will you dedicate to a particular fund?
Some things in the future worth making a financial plan for include savings and paying down debts. This is the time to be honest about your current financial standing. If you're looking to buy a home, you'll want to assemble a first-time homeowner financial checklist to begin to develop topics of conversation. Some of the things to consider setting goals for are:
- Student loans
- Car loans
- Future children
- A house
- Medical bills
- Delinquencies on credit reports
- Vacation and rainy-day funds
- Emergency funds
The more honest and open you can be with each other about the money you have and now the debts you share, the better. Implementing plans for the best ways to have the things that you both desire while still taking care of existing demands is important. These can be uncomfortable things to talk about; however, these conversations are necessary.
Following these tips to manage money together as newlyweds will allow you to have a starting point for conversations that can be tough to start. The sooner you and your partner get on the same page with finances and the responsibilities that come with them, the easier the transition will be and the sooner you'll find success.
It's the dream: money you can count on to keep rolling in, even while you sleep.
Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.
Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.
A YouTube Channel
You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.
You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.
If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.
What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.