Are Money Issues The Dirty Little Secret in Your Relationship?

On Money and Love

Be honest… Is money the dirty little secret in your relationship?

When couples aren’t honest with each other about debt and spending habits, a relationship can go south very quickly.

Financial infidelity (when one spouse hides money from the other) is another major relationship problem which creates mistrust and resentment.

Unfortunately, “money issues” is one of the top three causes of divorce according to a recent survey by the Institute for Divorce Financial Analysts.

Because your financial health as a couple is so closely linked to the health of your overall relationship, it’s imperative to communicate effectively about your finances and create a plan for financial success.

Because, as the saying goes, “love makes the world go round”!

The Step-by-Step Plan to a Successful Financial Relationship

Honesty, accountability, and a plan for success are key to a couple’s financial health.

But, what does that look like in practice?

Here is an action plan to help you get started:

1)     Decide on your shared financial goals as a couple. Write them down and prioritize them in order of importance.

2)     Come up with a monthly budget which covers expenses and works towards accomplishing your goals.

3)     Have a weekly money meeting to make sure you are on track for sticking to your monthly budget.

4)     Once a month, review the previous month’s budget and make any adjustments based on spending.

A great idea is to make it a fun date night by meeting at your favorite coffee spot or pizza joint—as long as it’s in the budget, of course!

First Comes Love…Then Comes Marriage…Then Comes Saving for the Down Payment

If you’re like most couples, homeownership is probably one of your top financial goals. And, it’s a great one as it can play an important part of your long-term wealth planning strategy.

Successful homeownership starts with a plan, and step 1 of that plan is saving for a down payment.

Saving a large sum of money can be overwhelming. Here are a few tips:

1)     Allocate a percentage of your monthly budget for down payment savings. Set up an automatic transfer to a savings account and commit to only using that account for your down payment.

2)     Sell unwanted items on Craigslist, Facebook Marketplace, or host a yard sale. You will be surprised how quickly these earnings add up.

3)     Lower your monthly expenses. Evaluate your monthly budget and see where you can make cuts. Put that money into your down payment savings account instead.

4)     Get a second job. Could you pick up some additional work like tutoring, working retail, or freelancing to help boost your down payment savings?

Loan Options for First-time Homebuyers

Contact us as soon as you decide to start saving for your down payment so we can let you know what figure you’ll be working towards. There are many great loan options for first-time homebuyers and FHA isn’t the only game in town.

Did you know conventional first-time home buyer programs often have lower rates and mortgage insurance than FHA loans? The down payment is only 3% versus 3.5% with an FHA loan.

Contact me at 401-313-7103 when you and your significant other are ready to take the leap and purchase a home together!

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.