In this economy, you are bound to go through a major financial crisis with your partner. Regardless of the number of years you have spent together, you are never spared from financial uncertainty as your family grows.
With bills to pay and daily essentials to secure, you must work together to ensure that the household stays afloat during tough times. For better or for worse, you and your partner will need to come up with wise financial decisions. Here are a few things you can do to navigate around economic uncertainty and avoid going broke.
1. Create a culture of accountability and openness
Making sound financial decisions is impossible if the other person isn’t aware of what’s going on. Whether you are investing in stocks or applying for guaranteed payday loans to pay off debt, you need to sit down with your partner and talk about these goals. There must be a system of checks and balances to ensure every cent you use doesn’t go to waste.
An easy way to do this is to open a joint bank account. This will allow you to communicate closely with your partner and come up with a good budgeting strategy. For this, your partner should have a say in major money matters. That is not to say you need to account for even minor purchases, but establishing transparency can help you avoid making unnecessary transactions and develop a sense of shared accountability.
2. Agree on lifestyle adjustments together
In the face of a financial crisis, you will need to let go of certain conveniences and lifestyle choices to remain stable. This requires major changes in your buying habits. Instead of eating out, consider home-cooked meals made from ingredients grown in a backyard garden. If you’re subscribed to several streaming services, you are better off using just one.
Applying these adjustments may look simple on the surface, but it also requires making sure your partner is on board. Explain how these changes can help you save money and identify other recurring expenses you will have no problem letting go of.
3. Train the kids on money matters early
If you’re married with kids, expect them to demand toys, clothes, and a trip to Disneyland. Although making your kids happy by giving them what they want is okay, it could make a dent in your finances if you meet every request.
For this reason, you should start training them about the importance of financial management. It’s easier said than done if you have a child who is prone to tantrums, but you can help them develop a wiser approach to spending by putting a monthly cap on purchases.
For instance, you can limit spending on toys to $2 monthly. If your child doesn’t use that amount, it will be rolled over the succeeding month so they will have $4 in their “toy bank”. There are other creative ways to train your child to be financially wiser, so meet with your partner and make a plan.
Use these tips for better money management and a more secure financial future.