It’s no secret that tipping the financial scale one way or the other can make or break you. If the scales are tipped in your favor, you’ll find freedom and comfort. If the scales tip against you, however, you may find yourself in a situation you never imagined being in. Dealing with this on your own is one thing in and of itself, but dealing with it as a couple another thing completely. And navigating financial challenges in a relationship can be extremely difficult.
Dealing with any financial burden is never fun, and when you’re dealing with it as a couple, it can easily put a strain on the relationship. Perhaps the most frustrating thing about financial challenges is that they so often pop up unexpectedly. Most people don’t expect to lose their job suddenly or suffer a major loss in income, nor do they expect say, a large medical bill to pop up out of nowhere. Money offers comfort and stability, and when that’s disrupted, it leaves a lot of uncertainty in its wake.
The good news is that despite the fact that dealing with this rocky time can be tricky, it doesn’t have to ruin your relationship. With the right steps, you can deal with money stress as a couple. Keep on reading to learn the 5 tips to navigate financial challenges in a relationship.
How to deal with financial challenges in a relationship:
1. Take inventory of your finances
Whenever there’s a sudden loss or change in income or unexpected financial stress, the first thing you should do is take inventory of your finances together. Regardless of how finances are handled in your relationship, it’s important that you do this together. This will help you both get a clearer picture on the current financial situation as a whole.
If you’re dealing with any changes in or loss of income, calculate the total amount of your living expenses, any debt you’re paying off, and what you’re setting aside into a savings account or investment portfolio. Once you have that number, subtract it from your new income amount. This will give you a rough idea of what you have to work with moving forward. If you’re dealing with any unexpected bills, be sure to add that amount into the first step before subtracting it from your income.
2. Make a loose plan for the future
Your current financial challenges don’t have to be a forever thing. Together, make a loose plan for the future. If one of you has suffered from a job loss, how do you plan on getting back on your feet and employed again? How can you support one another during this challenging time? Where do you see yourselves in five years financially, and what steps can you take to get there? Of course, you can’t plan for everything in life, but making a loose plan will help ensure you’re on the right path.
3. Discuss what changes need to occur moving forward
Before you make a budgeting plan, talk about and highlight what potential changes need to occur moving forward. Continuously pulling from your savings or accruing more debt and missing any debt payments is only going to add to your stress. Making small lifestyle changes can help you save big in the long run, and remember: It’s only temporary.
Maybe you need to cook at home more to save money on food; maybe you need to cancel an unnecessary streaming service. Whatever the case may be, discussing the impacts the challenges you’re facing will have on your finances moving forward is key to dealing with this effectively as a couple.
4. Create a new budgeting plan
A new budgeting plan will account for your financial changes and ensure you’re on the right path moving forward. Together, create your budget by hand, on a spreadsheet or template, or through a budgeting app like Goodbudget or Mint. Having a set plan to follow will make both your lives easier.
When it comes to making your budget, there are two key things you should include:
- Enough money to comfortably pay for living expenses
- Contributions to savings/investments and outstanding debt
5. Be totally transparent
As with almost everything in life, total transparency is always a good idea. The last thing either one of you needs to deal with is financial infidelity from the other one. Communicating regularly and honestly will make navigating this challenging time much easier.
Admittedly, talking about finances with others is something many people struggle with. However, the more you practice discussing money with your partner, the easier it’ll get over time. Money challenges are something almost everyone in the world has to deal with at one point or another, and if you can get through this time, you’ll come out stronger on the other side.
Transparency is so key! Thank you!
Author
100%!! Thank you for reading!
All of these tips are so helpful! I definitely think making a plan and budget has really helped my husband and I though financial difficulties. Thanks for posting!
Author
Thank you so much – it’s so great to hear that! Doing it together is definitely a good way to make sure you’re on the same page, too. Thanks for reading!