If your considering taking the next big step and moving in with your significant loved one, it is important to think carefully about the implications. Learning to live with someone else can be a tough exercise. It may be the best thing you have ever done and your relationship will continue to grow. Or, you may start to notice those small irritating habits that ultimately lead to the relationship ending.

The discretionary spending habits that you or your significant other exerts are an issue that can place pressure on your relationship harmony. Each individual has their own unique spending behaviour that may or may not suit their lifestyle choices. If a couple does decide to merge their finances, then it is important to discover these habits early to ensure things continue to run smoothly.

You need to consider each person’s income and the way that they deal with that income. To make a profit some people are willing to undergo certain risks, which may work towards their advantage or disadvantage. Others are inclined to save almost everything they earn. These traits can have a sizeable effect on the success of your relationship so it is important to try and find a middle ground.

To allow someone to have access to your finances, it is important that you have substantial trust in their intentions. Nothing is set in stone as to what will and will not work for a couple, so it is essential to have a discussion about finances early on. By establishing some ground rules you will help avoid future conflict and possibly save your relationship.

It may work well to initially try to understand what your significant other values spending and saving for. This will help you make essential financial decisions that both parties are happy with. It is not always easy to come up with a plan that both parties agree on. Ensure that both parties are actively communicating, listening and willing to compromise.

It is important that both parties take an active role in the finances regardless of their personal income and spending behaviour. A healthy relationship heavily relies on active communication and compromise. This is especially important in the area of finance. With both parties understanding current financial situations, decisions regarding cash flow will be simpler and there will be minimal conflict.

You may find that having a ‘my cash, your cash, and our cash’ approach to money can help keep your relationship on track. This approach ensures that each party still maintains some of their financial freedom. They are able to spend their income as desired. Each party can contribute an agreed amount to a joint bank account, which can be used to pay for any bills or expenditures. This will ensure that both parties are contributing to the financial costs of the household. Another financial issue that needs to be considered is debt. Consider what debts, both small and large, you are currently paying for. Ensure that you allow for these in your budget. Remember that when signing for any joint loans or credit cards, both parties are responsible for the entire debt. Banks and other lending institutions do not think of repayments in terms of an individuals share.

By taking the time to discuss your finances with your partner, you are helping ensure that a successful and happy relationship is maintained.

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