The longer you’ve been with your significant other, the more likely it is that you’ve experienced a few heated disagreements. According to marriage statistics, couples tend to argue about financial troubles more than anything else. When money is tight, you may experience more tension with your partner. While there’s no easy way to solve all of your money problems, there are many steps you can take to create a healthy financial foundation within your relationship. Review these tips about how to create a smart financial plan with your partner and gain insight into the best practices for your future. 

Establish a Budget

One of the first moves you need to make when it comes to gaining control over your finances is to establish a budget. Sit down with your partner and review your monthly expenses. Start by calculating your living costs like rent or mortgage payments, utility bills, and insurance coverage. Next, review how much you spend on entertainment, like streaming services, ordering food from local restaurants, and going out on dates or with friends. When you understand how much you tend to spend every month and weigh it against your income, you can determine a practical budget.

Make Cuts Where Needed

While figuring out your budget, you may notice that you’re unable to save money because you’re spending too much. The most sensible decision to make in this scenario is to cut certain expenses. Decide how much you would like to save from each paycheck and see which expenditures prevent you from setting these funds aside. Having money saved for an emergency is vital, so be diligent when it comes to making cuts to your budget. If you don’t want to sacrifice your current lifestyle, you can also consider finding a second job to supplement your income. 

Pay Attention to Your Credit

Having a good credit score is important for a variety of reasons. Whether you’re looking to buy a house, lease a car, or take out a loan, your credit rating determines your eligibility and what interest rates you will pay for these services. If your scores need to improve, create a plan of action with your partner. One easy way to raise your score is by paying down your existing debts. Make payments that put a dent in the principal you owe rather than smaller payments that only cover accrued interest. Automating monthly payments for services is another great choice. 

Maintain Separate Accounts 

Though marriage means you are merging your lives together, you don’t necessarily need to combine all of your finances. In fact, many experts recommend that couples keep separate bank accounts. No matter how much you love your partner, you never know what the future holds. Should you decide to divorce, for example, you stand to lose a good chunk of the funds you have saved. Consider having both a joint account that you both have access to for shared expenses and individual accounts you can put funds into for whatever purposes you’d like. 

Be Open and Honest

Finally, focus on open and honest communication with your partner when it comes to all financial matters. When you keep secrets, it can lead to a lack of trust within your relationship. Whether you made a bad investment with funds that you share or you’ve decided to open a personal bank account that your partner does not have access to, talk about these matters in a truthful way. The conversations might be awkward or tense at first, but it will be much better than withholding information until your significant other learns the truth from an outside source. 

While a majority of people will experience financial struggles throughout their lives, these difficulties don’t need to have a negative impact on your relationship. Create a smart financial plan with your partner and clear the air of any possible tension.