Finance Tips for Young Couples Starting Their Lives Together

There are many guides out there for older couples who are married and have lived together for while, but what financial advice is there for young unmarried couples who are just starting their lives together. Many couples in their early 20s are just starting to learn about how to manage their own finances and work together as a team. If they make good decisions at this early stage in life they can set themselves up for success, but if they make poor choices they can find themselves struggling later on.

Successful couples will tackle managing their finances as a team and if they can work together well they can get ahead much more quickly than one person could on their own. Here are some tips for young unmarried couples who are just starting on the road to wealth together:

Align Your Goals and Money Philosophy

Have you had a conversation with your partner about how you both like to manage money and the goals that you have for your future? While this is not the most romantic thing to talk about on your first date, it is a very important topic to discuss if the relationship is getting serious. It is important that you both are on the same page when it comes to managing money, otherwise you can suffer from conflicts and resentment.

Talk about what your goals are and how you see your future playing out. Would you rather work hard and invest aggressively so that you can retire early, or live frugally so that you can work less and do more of what you love? Do you plan on buying a home one day that will involve mortgage repayments, or renting a house? Would you lease a new car or buy a used one? Once all of these lifestyle choices are on the table you will be able to see if you are financially compatible as life partners and be able to envision a life which is a perfect compromise between both of your dreams.

Don’t Keep Secrets from Each Other

Have you confessed to your partner all of the secrets of your finances, such as the amount of your credit card debt or the unpaid balance of your student loan? It is important to get these secrets out in the open as soon as possible, because they can be unwelcome surprises later on in the relationship.

While you are young, lay out all of your financial cards on the table and assess where you both are in life. Be honest and upfront about it so that you can both create a plan to work together to pay off debts and save for the future.

Prepare For Emergencies

Even if you have a great career and a comfortable income in this early stage in life, you never know what is around the corner. You could find yourself faced with an emergency, such as an accident, an illness or being made redundant, which could really throw you off track. If you don’t have an emergency fund saved up this could leave you in trouble. Try to save your money and have three to six months of expenses saved up just in case.

These are just a few important tips that young couples should remember while preparing to manage their finances together.