Ann and Martin, a couple from Nairobi have been planning the next step of their relationship- marriage, and one subject they have avoided but know is crucial to their future together is finances. Coming from different backgrounds, they have both heard and seen couples fight over finances and financial responsibilities but are determined to navigate and succeed together.
While love is wonderful, things can get a little complex when money becomes involved. In today’s digital era, the dynamics of love, partnership and money have taken a new dimension when compared to that of our forefathers. In Kenya, money has become both a source of strength and division in many homes because of the current economic turmoil the country is experiencing and the different viewpoints people have on finances.
Like Ann and Martin, many couples avoid talking about finances or push it to the last minute, when there is a crisis. Open and honest communication is the cornerstone of any successful relationship which begins with being truthful and forthcoming with each other about the state of your finances, including your income, spending and saving habits, credit score, debt, property, and financial goals.
When money issues are not handled effectively, they often lead to friction and create tension in any relationship. Navigating love and money can be easy if practical steps are taken along with having honest discussions.
Here’s an easy approach to help you manage your money and relationships:
1 Just like in love, you need to recognise that you both have different viewpoints because of our different upbringings and approaches to saving, spending and investing based on your upbringing. By gaining insight into each other’s perspective, you will be able to find common ground and work towards a compromise that will benefit both of you.
2 It is important to set both short and long-term goals that reflect your shared aspirations and values eg saving for a vacation, buying a home etc By having a common objective, you will both be motivated to stay focused and in turn, this minimizes the risks of any friction that may arise on how the funds should be utilized. It is important to also periodically review your shared goals to reflect any changes in your life circumstances.
3 Once you have established your goals, the next step is to decide how the funds will be saved. This can be done either through individual accounts, shared or a combination of both. While individual accounts have the advantage of autonomy and independence, joint accounts promote transparency.
4 Budgeting is a key factor that needs to be considered when planning your finances. Just like individual budgeting, budgeting with a partner means reflecting on both your income, tracking your combined spending and creating a plan for essential expense payments. While creating a budget, it is important to also factor in unexpected expenses such as medical emergencies and unforeseen circumstances.
5 Seeking professional financial advice when need be is important to ensure you are both on track with your finances. Having a financial advisor will help both of you to streamline both your personal and joint financial goals, and help you come up with a comprehensive financial plan.
Remember, communication is key! Managing finances as a couple requires patience, understanding, and teamwork. Talking openly about money not only helps with planning but also strengthens your emotional connection while setting a strong foundation for your financial future together. So, grab a cup of coffee, open your hearts, and start navigating your financial journey together! By incorporating these tips and fostering open communication, you can turn love and money into a recipe for financial success and a stronger, happier relationship.