Achieving financial breakthrough or simply being in a place of financial stability is something that most of us dream about. Yet, getting to that place can be quite a struggle especially if you’re living paycheck to paycheck. Being in debt can feel like you’re in bondage with no form of escape. Unless you were born into wealth or achieved wealth, the odds of becoming a millionaire and making all your financial dreams come true may not be the highest. However, achieving financial breakthrough doesn’t have to come by circumstances or luck. Having the right conversations and tools in place can get you to this point. Where a lot of couples go wrong is not talking through their financial issues. Having the right conversations early on can really set you up for success in ways you may have never imagined. Here are seven important money conversations every couple needs to have.
A Conversation About How We Handle Money
A very important conversation every couple should have is how they deal with money. You should know if they’re conservative about their spending or if they like to blow through their money. You should know if they are in serious debt or financially responsible. If you don’t know these answers before you choose to walk down the aisle can lead to a lot of problems down the road.
A lot of relationships benefit from having someone who takes budgeting and financial planning seriously. However, this may not always be a reality. Sometimes, both partners are just not good when it comes to these sorts of things. If this isn’t the case, you can still come up with a workable game plan. You can both split responsibilities based on your strengths and turn to financial planners that can help you get on track.
A Conversation About Spending Less
There is no way to become financially successful if you spend every dollar you earn. That’s why it’s so important to for couples to have conversations about saving. You can’t begin to do this until you start spending less than you earn. Create a budget around your necessary expenses and every paycheck; put your money into savings accounts that you can’t immediately access. Saving also allows you to have money for down payments on future large-purchase investments like a home. Remember, these purchases serve not only as equity but as investment properties, bought with the intent of earning a return on your investment. There are likely people you know who are sitting on a great amount of wealth but you would never know it because they aren’t flashy – they don’t spend their money on frivolous things but on things that will keep their finances stable.
A Conversation About Investments
Investing is one of the best ways to keep your wealth growing and is one of the major keys to financial success. Remember, an investment is the purchase of goods that aren’t used today but in the future to create wealth. A great money conversation every couple should have is about financial investments. For a couple that has never made a serious investment, the idea may sound scary but it doesn’t have to be. Investing is super beneficial but it can be extremely intimidating, especially when you’ve never invested in before. Having a financial advisor can be advantageous as they will guide you in putting your investments in the right place and really helping you manage your money. There are also tons of beginner investment strategy resources available online that will help you figure out the direction you want to head in.
A Conversation About Banking
To bank together or not to bank together, that is the question. In many cases, you and your partner having a joint bank account can be a huge financial asset. When you share a lot of expenses, particularly the usual bills and household finances, it can be helpful to have an account together so all of your money is in one place. When you have one account, both parties can always see where money is going and may be able to cover more financial ground. This means that you have to be honest and open about anything you may have been hiding.
There are also couples that benefit from having separate accounts. Some of these benefits include having some financially not having to ask to spend money and some financial freedom. The key to this is both being financially responsible. If this is the direction you want to go in, it’s important that you communicate about it.
A Conversation About Long-Term Financial Success
Whether you’re flourishing financially or you’re finances are in a rocky place, you should always keep in mind that this may not be your big financial season but that time is coming. This is why it’s so important to focus on long-term financial success with your partner. When you and your partner are making financial decisions, you should always begin with the end of the mind. Don’t just make quick financial decisions that only benefit you too in the short-term. There’s no way to achieve financial breakthrough without hard work and believing that achieving success is truly possible. Trust in the process. Trust that when your time comes, you will be ready for it and that you will do what it takes to keep your business in order. When you truly believe that anything is possible, including your personal success, the sky’s the limit.
A Conversation About Starting Your Own Business
Have you and your partner ever considered starting your own business? Many people say you can’t mix family but that’s not always the case. Sometimes, there is no better team than two partners who are committed to making a collective dream a reality. If you and your partner have a big idea, it is possible to start your own business. While there is the chance that you can achieve great financial success by working for other people, the value of your work is split among others and you’re not in control of how money and value are distributed. If you and your partner start your own business, you control how money and value are distributed, and these two factors will only grow with your business, especially one that the two of you are passionate about. There are tons of online resources that can assist you in starting your own business. Use them.
A Conversation About Generating Multiple Forms of Income
Having more than one steady flow of income can put you and your partner in a great financial place. Income streams can dry up. That’s why having money coming in from multiples sources can help. It ensures that the money never stops rolling in. Successful business owners go to extremes to make sure they have money coming in from different places. This allows them to produce multiple forms of revenue, consistently. If you and your partner already have a business going, invest money in other promising business ventures. Think bigger than just your business. Remember, you’re not limited here. If you and your partner have a business idea but haven’t taken the leap, know that it’s never too late to start. It may not be easy, but taking a leap of faith can put you in a better place to secure your financial future.
You and your partner should have a shared vision when it comes to money. If you don’t, you should create one. Conversations around money are never easy but they’re imperative. If you’re open to communicating with your partner about your visions, hopes and dreams about your financial future, you are already on the right track. Make sure you’re also willing to hear them out. You may be just one step away from a financial breakthrough. The power is in your hands.