Healthy relationships are crucial to your overall well-being. Financial conflicts are a common cause of relationship stress, and when they can’t be resolved, they can even lead to divorce. Fortunately, there are many types of money conversations and ways to handle those conversations so that finances can be a positive rather than a negative point in a relationship. Also, recognizing challenges and formulating a plan can help you build better relationships and also help you build a stronger financial foundation.
Making money a comfortable conversation topic is one of the most important things you can do to strengthen your finances. Be deliberate about financial conversations with parents, children, and even friends. Remember that partners and friends support each other’s goals. If you’re not there yet, consider putting some energy into goal-setting with those closest to you and focus on the following areas to improve your financial well-being.
Implement a spending plan that includes budgeting for things important to you and the relationships you value. If you have a partner, being intentional about how you and your partner spend money and save for the goals you share, can bring you together instead of causing conflict.
Credit Score & Manageable Debt
Communicate about goals that might include leveraging debt, like buying a home or a car. Working to have your best possible credit score before you make a purchase can allow you to have lower interest rates, and it can cost less in payments over time. Having manageable levels of debt can reduce your level of financial stress and allow for more time to focus on relationships.
Set & Achieve Goals
Working on goal planning and achieving even small milestones can be rewarding and fun. When you work towards your goals together, it can strengthen your relationships. Focusing on achieving what matters most to the both of you and not worrying as much about the little things can help you imagine your future as a team.
Put measures in place to protect your assets and those you love. This could include having emergency savings and the right amount of insurance to protect yourself and those you love. Communicating about worst-case scenarios may not be fun, but imagine the peace of mind found by putting protections in place. This may also include having a will and/or a trust and other legal documents like medical directives, as well as keeping beneficiary designations up to date.
If you haven’t mastered all of this yet, you’re not alone! Work with a Money Coach to discuss budgeting, managing debt, and action plans for funding your goals. We also welcome and encourage you to include your partner in your coaching sessions. A Money Coach can act as an unbiased third party to help facilitate money conversations. By implementing these tips, you can improve your financial well-being and your relationships.
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