{"id":787,"date":"2019-04-29T12:32:02","date_gmt":"2019-04-29T12:32:02","guid":{"rendered":"https:\/\/www.indwe.co.za\/indwe-blog\/?p=787"},"modified":"2019-05-16T12:51:59","modified_gmt":"2019-05-16T12:51:59","slug":"navigating-finances-couple","status":"publish","type":"post","link":"https:\/\/www.indwe.co.za\/indwe-blog\/navigating-finances-couple\/","title":{"rendered":"Navigating your finances as a couple"},"content":{"rendered":"

Financial differences can place a huge strain on any relationship. Fortunately, says Danie van Niekerk from Indwe BlueStar, if you approach your finances together and give them careful thought, such difficulties can be avoided. The key is to engage in frank and open discussions about them and calling in the help of an objective professional.<\/p>\n

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  1. Lifestyle aspirations and drawing up a financial plan<\/strong><\/li>\n<\/ol>\n

    A key part of any committed couple\u2019s financial life is having a financial plan that covers short- and long-term goals. A financial planner can help you\u00a0prioritise your goals and create a plan\u00a0to reach those goals. It\u2019s a good idea to have a discussion with your partner before your meeting with the financial planner, covering the kind of lifestyle you would like to live, as well as saving for emergencies, retirement, children\u2019s education, deposits for big purchases, or perhaps a wedding. You should also discuss how to prepare for unforeseen events like death, illness, disability and unemployment.<\/p>\n

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    As a couple, it\u2019s important to align your future aspirations because the amounts you need to reach your goals is dependent on these, says Danie.<\/p>\n

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    1. Budget for monthly savings, spending and donations together<\/strong><\/li>\n<\/ol>\n

      Budgeting is an essential tool to understand where one intends to spend money and how much, and for tracking past spending. Discuss with your partner how much is available to save, what you can afford to donate, but also look at where you can free up some cash. Make time to review your budget regularly to ensure you are spending as planned, but also to plan ahead for additional future expenses that will affect your budget, e.g. the cost of caring for a new-born baby or additional money for transport when taking up a job further from home.<\/p>\n

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      1. How to formalise finances in your relationship to allow for unforeseen events<\/strong><\/li>\n<\/ol>\n

        A will and antenuptial contract are some of the important legal documents that can help you manage the distribution of assets or debt in the event of death, insolvency or divorce. The type of marriage contract you chose will also affect how financial and physical assets and debt, which existed before and after the marriage, are distributed. Your financial planner, working together with a legal advisor, can help you decide the best route to\u00a0plan your estate.<\/p>\n

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        1. Separate or joint bank accounts?<\/strong><\/li>\n<\/ol>\n

          There are pros and cons to both options. But whichever you choose, you must allow some level of independence in making financial decisions to maintain a healthy relationship. The typical banking account options to choose from are:<\/p>\n

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