How To Financially Prepare When Moving In With Your Partner

Moving in together is a symbolic act.

It signifies that you and your partner are ready to get serious with your relationship while taking care of your future together. It’s a huge commitment that requires a lot of patience, planning, and preparation.

Proper money management is an important part of maintaining a healthy relationship especially when you’re cohabitating under one roof. As such, you and your partner must be financially prepared before you start living with each other.

With the proper amount of planning, the two of you will be able to live a long and happy life. Here are some tips on how you can financially prepare for moving in with your partner.

1. Be Aware Of Each Other’s Financial Standing
   
   Your financial profiles will define your lifestyle.
   
   Talking about your finances may not be the most romantic thing to do but doing so will help the two of you set realistic expectations and adjust your spending habits. Once the two of you take into account your total assets and liabilities, creating the right budgeting plans and making the right financial decisions can be done easily.
   
   Aside from your financial standing, here are other things that you should talk about with your partner before you move in together.
   
   
2. Organize your Finances Together
   
   In a 2017 study conducted in the Philippines, 89% of couples who plan their finances together expect to improve their financial health in five years.
   
   By monitoring your bank accounts together, money will be a more comfortable and open topic for discussion. Setting time aside and going on “money dates” will give you both some clarity and insight on your current financial standing as a couple. Once the two of you figure out what your net worth is, you can then discuss whether you are ready to make bigger investments or commit to larger expenses.
   
   
3. Set Goals and Milestones
   
   In the same study mentioned previously, it is reported that couples who have shared financial plans have higher relationship satisfaction scores.
   
   Begin with the end in mind. Do you plan to buy a house? Do you plan to have kids? At what point in the relationship? Setting goals will motivate the two of you to take the necessary steps to achieve them. Being able to accomplish these goals is a fruitful experience that will nourish your relationship and give the two of you a strong sense of fulfillment.
   
   Additionally, you should prepare to face unexpected hurdles and emergencies. Take the time to look at different life insurance plans. Policies such as the Critical Care 100 can help you and your partner get through financial hurdles in the event of a critical illness or death.
   
   
4. Agree on a Balanced Expenses Plan
   
   Splitting your expenses in half may not always be the best choice. If you and your spouse earn the same amount of money, a 50/50 solution may work. But in the case of most couples, one usually earns more than the other. Dividing your expenses evenly may exhaust the one who earns less.
   
   While there may not be a clearcut method on how the two of you should balance your expenses, agreements can be made to properly designate responsibilities. You can be in charge of small, accumulating expenses such as food, electricity, and water. On the other hand, your spouse can be accountable for bigger expenses such as rent and home improvement.
   
   As long as things are fair and that both parties agree, both of you should be able to save, and paying your bills shouldn’t be a problem.
   
   
5. Create multiple sources of income
   
   Let your money work for you. If you’re just letting your money sit in your bank account, you’re missing out on the benefits of compound interest.
   
   Invest in a small business or search for a suitable savings plan for you and your partner. Creating multiple streams of passive income will let your savings grow bigger and give you independence from your monthly paychecks.

Passion and Practicality

Love and commitment are essential elements for a successful relationship, but always keep in mind that financial preparedness is just as important. For happiness throughout all stages of your lives, it’s important that you and your partner make it a point to always plan two steps ahead. Now that you’ve decided to move in together, it's essential that you take the time to set milestones and align your efforts towards achieving them.

Money isn’t everything, but it will help you and your partner attain a long, healthier, and more comfortable life. For more information, send us an email or call our customer care hotline at (632) 8 528-5501. You can also talk to one of our Bancassurance Sales Executives at any of our 900 BPI branches nationwide.