The Ultimate Couples' Guide to Saving up for a Financially Stable Future
Having lost the previous balloting round in May.
I see my 25-year-old sister praying to get her to turn this time in the upcoming August BTO.
That got me thinking, that my partner and I should probably start planning early.
Which starts all the awkward finance conversations.
The Ultimate Guide To Saving Up With Your Partner
1. Be Honest and Aligned With Your Partner
It is very important for a couple to both have a common and very clear idea about the intention of the joint finances.
Ever since my partner had started his investment journey a few months ago, he has been pretty obsessed with the importance of financial stability.
Especially for the future.
He has also been trying to sit me down for a financial talk (Couples Edition)
(While I have been trying to avoid the talk, because adulting is sian)
Even though it did lead to some small tiffs, it also helped to break the awkwardness of the conversation after a while.
We were able to openly share our views for the future and to match them.
Such that we are on the same side when it comes to finances – which is to live a financially free life.
Not having to fret all day about finances.
That way, we were able to reach a common understanding.
2. Set Financial Goals Together
Especially for couples who are in a serious relationship, it is very important to get into the mode of sharing the financial burden together.
Being together is sort of a joint venture, and being invested in our future together.
More than ‘your’ or ‘my’ money.
It now becomes ‘OUR’ money.
And the best way is to start with the end in mind.
While it may seem like it’s too early to start planning.
(I mean, I barely turned 21 and I wasn’t even eligible to vote in the recent GE2020 yet)
It’s always good to have a plan first, then adjusting as time goes.
Of course, this is only highly encouraged for couples who have plans to go all the way.
Wouldn’t want to risk $77k if you break up after you BTO-ed…
3. Have An Action Plan
(a) Budget Allocation
Did you know, that a couple can potentially save an extra $120K by just following a simple budgeting rule?
By doing proper planning and budget allocation,
That being said, maximising savings is the most important.
(b) Having A Joint Savings Account On Top of Individual Saving Accounts
Having a joint account together with your partner is highly encouraged.
And the money in the joint account is only to be spent when both parties agree upon it.
Personal expenses should still be kept separate, and mutually respected by the couple.
(Just like how each relationship needs their personal space, so does each of our personal finance)
Now the problem of ‘fair’ contribution comes in.
One way is for each partner to contribute an amount proportionate to your monthly income.
Alternatively, if your incomes are within 10% to 20% of each other, a fixed amount each would be sufficient.
At the end of the day, the most important thing is that each couple finds each other’s contributions reasonable and agreeable.
4. Tracking Progress
It is important to review your progress regularly so that you can keep your goals in sight.
By keeping close watch of your progress, you can act and adjust accordingly if you feel that you can save more.
Or if you can find better ways to grow your savings together.
(Don’t say I bojio, I have linked up the exact tools that our Co-Founder Kenneth actually use personally – which includes a downloadable Excel sheet)
5. Mutual Support
In every relationship, every couple is bound to hit some rough patches here and there.
And there are times, when a couple may not agree to each others’ methods.
A member of our SeedlyCommunity shared his financial journey with his partner and stressed the importance of mutual understanding when it comes to finances.
To do so, he shared that couples should not force their methods onto each other and rather, should provide their objective analysis and inputs regarding the matter.
Most importantly, to always reach a compromise together.
Thoughts About Saving Up For the Future Together As a Couple
Getting to start this financial topic is always the hardest.
The first step is to have a good conversation with your partner and understand the differences in your viewpoints
The key is to find a common ground upon which you both can agree on as both of you will likely have different views.
Remember, at the end of the day, it is you two against the tough financial journey ahead, and not each other.