Planning to tie the knot this year? At some point in your relationship, you’ve probably talked about some of your hopes and dreams for the future, such as where you want to live and how many kids you’d like to have. But have you had a conversation about finances? Talking about money matters can seem anti-romantic, especially when you’re loved up and all wrapped up in wedding plans. However, if you want a peaceful, lasting, and comfortable life together, you’ll want to discuss your finances before your big day.

Research shows that finances are one of the leading causes of marital conflict in Australia, and 91 per cent of couples say that they always argue about money-related issues. Although the majority of participants believe that having regular discussions about money matters can strengthen their relationship, about one in five rarely discuss their finances with their partner. Relationship experts recoPlanning to tie the knot this year? At some point in your relationship, you’ve probably talked about some of your hopes and dreams for the future, such as where you want to live and how many kids you’d like to have. But have you had a conversation about finances? Talking about money matters can seem anti-romantic, especially when you’re loved up and all wrapped up in wedding plans. However, if you want a peaceful, lasting, and comfortable life together, you’ll want to discuss your finances before your big day.

What is Financial Compatibility?

In the past, being financially compatible meant earning roughly the same income or being in the same socio-economic class as your partner. But in truth, it’s more about having compatible attitudes when it comes to finances. So, it doesn’t matter if you’re in the corporate world while your partner does traditional manual work, such as carpentry or car maintenance. If you’re financially compatible, you’re more likely to have healthy and regular conversations about money, even if you have different careers or work environments.

If you have the same spending and saving habits, or you have similar priorities when it comes to savings, debt payments, or investments, then it’s safe to say that you’re financially aligned with your partner. Of course, no couple is completely economically compatible from the start. There are likely some aspects where you’ll differ, so compromise is needed in your financial goals as a couple. Ask each other the following questions to see how you can manage your finances together.

How Do You Save and Spend?

Everyone has different habits when it comes to saving and spending, so ask each other how they manage their finances. Do you automatically put away savings once you get paid, or do you save what’s left after paying bills and buying other things? Do you need a budget for ‘fun’ things, such as entertainment, hobbies, or collections? Should you create a joint account while keeping separate accounts? How many credit cards should each of you have, and how should they be paid off? Discuss these matters so you can agree on how much money to set aside for a rainy day and how much you can spend on necessities and things you enjoy.

Lifestyle and Habits

You may be in for a shock if you suddenly find out that your partner has an affinity for luxury cars, designer clothing, or expensive vacations while you have simpler or more practical tastes. Many couples with different lifestyles and spending habits tend to clash, and while you don’t have to buy or do the same things, you have to be aware of each other’s money habits for the sake of transparency. You could compromise on the number of international trips you take per year or the frequency of shopping trips.

Goals for the Future

Couples who are committed to their relationship always set goals for the future. To secure your financial future, talk about your retirement plans, when you plan to retire, how much savings you’d ideally want to have once you reach a certain age, and what investments you’d want to have by then. You’ll also need to discuss some short-term goals, such as plans to pay off student debt, achieve homeownership, and similar objectives.

Being financially compatible can help couples to avoid misunderstandings about money matters and spending habits. Before tying the knot, take the time to discuss your saving and spending habits, lifestyle, and goals, so you can live harmoniously while building your financial future.