Financial compatibility: Why it is important in relationships

In any relationship, money is a very sensitive and contentious subject. It was once customary for couples to avoid talking about money during the early stages of a relationship.

Although this may not be the case, many people have stuck to this guideline and as a result, have avoided talking about money in their relationships until it became a serious problem.

You need to discuss money with someone to determine whether you are compatible in a relationship.

In any partnership, financial compatibility is a critical metric to take into account. When it comes to partnerships, people make sure that their values, interests, and aspirations line up, but their financial compatibility has been overlooked. But since money is said to be the reason for 20 to 40 per cent of relationship breakdowns, this has a big impact on the longevity and quality of their union.

Why finances are important 

It is sound and logical to state the obvious that money answers all things and makes the world go round. It pays the bill for groceries and food, pays for romantic dinners, and pays for the wedding arrangement that makes holy matrimony possible. 

While they live together, it ensures their safety in the future. But money is the driving force behind all we do in life. A relationship may end due to reasons other than love and feelings for one another, such as a lack of money or a quarrel about money. Once more, it is reasonable to state that a number of broken relationships are the result of issues with money, either a lack of it or disagreements over it. 

This demonstrates that the source of all evil is love and an unchecked fixation with money. As a result, discussing financial compatibility in a relationship before getting married becomes essential.

What is financial compatibility?

After discussing the many uses of money, let’s explore the definition of financial compatibility. In terms of relationships, financial compatibility is defined as having similar opinions, viewpoints, and financial objectives as well as a shared understanding of the value of money and all financial issues. To be financially compatible is to be in alignment with your partner throughout the relationship in a way that makes it possible for you to coexist peacefully.

It has to do with reaching a consensus regarding the allocation of funds and their priorities.

When two people have similar finances, their relationship can become easygoing and frictionless. Conversely, the majority of relationships are not preexisting; rather, they are developed through intentional communication between the two parties involved. 

This applies to money issues as well. 

It’s important to bring it up, have a conversation about it, share your viewpoint, hear the other person out, and ultimately reach an amicable agreement.

How financial compatibility can be achieved in your relationship

According to experts, financial compatibility is more about communication than anything else. Before you can establish a red flag, you first initiate the conversation about money. Even if your views differ, it’s good you know them, establish the facts, and eventually come to a reasonable compromise. Financial compatibility is not about stressing disagreements in conversations but coming to a mutual compromise and alignment.

Here are some of the ways to know your financial compatibility in any relationship

1. Discuss how much money you intend to save, and for what purpose 

As couples in relationships, you must agree on how much to be saved, whether for the short term or the long term. Also, the goal must be clearly stated. And as expected, there might be some objections to the other. You must settle the differences and come to a compromise 

2. Talk about your debts and how you intend to pay them

In relationships, you must be open about your debts to your partner. Let him or her know why the debt is in the first instance, and together discuss how to pay them off.

3. Discuss your shopping and spending behaviour

This is very important. While individual taste differs, you must agree on how much to spend, how to spend it and where to spend it. You must also agree on the things that are indispensable and must be prioritized. It’s more of a mutual understanding and the ability to come to a reasonable compromise is what financial compatibility is all about 

4. Be sincere and quick to talk about bad financial habits like gambling and impulse buying

Gambling and impulse buying could be major red flags in relationships. It must be avoided at all costs. If it is a concern in your relationship, then you must talk about it, take decisive action about it, and with the help of the other, put an end to it.

5. Decide within yourselves the option of a joint account or a separate account for savings and spending

There are no rules to this. As one in a relationship, you must decide between your partner which is best for you. Whether to get a joint account or an individual account. However the options may be, it’s all about trust and sincerity.

6. Discuss expenses and budget

At the end of the day, it must come back to keeping the books. Financial compatibility also has to do with being able to budget money together and keeping an eye on every expense. 

7. Discuss investment choices and priorities 

 You must discuss your investment choices with your partner, and make sure you agree on your choices and priorities 

8. Discuss your financial obligations to relations and come to a compromise 

This is very important. As couples, you have a financial obligation to your families. However, you must be clear on the amount you intend to spend on your family. This must be discussed, and you must come to a mutual agreement in this regard 

9. Talk about retirement plans

Discussing retirement plans in a relationship is an indicator that the relationship is heading somewhere. 

It must be carefully discussed and agreed upon. 

Conclusion

We all need to have a strong anchor in our relationship.

While love and true companionship are the premises of any relationship, the neglect of this very important aspect of our relationship may bring it to ruin, as it has done to many. 

Love alone is not a yardstick and proof that a relationship will be secured.

So seek to know everything about your partner, seek to resolve the difference and come to a peaceful compromise. This should be taken seriously, especially when it comes to matters of finances.

You must talk about the money, and look out for some red flags that must be addressed and reconciled together.

You and your partner should come to a consensus when it comes to budgeting, spending, investment and saving.

When you are compatible in this regard, the love and affection will continue, trust will soar, and a long and lasting relationship becomes inevitable.

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Paul Umukoro

Paul Umukoro

Paul Umukoro is an astute content writer with makemoney.ng. He writes mostly on hot, contested, and valuable topics in business, finance, and technology. He majored in computer science.

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