How Couples Can Set Goals Together for a Smooth Financial Future

posted on Feb 21, 2020

Simple Steps To Avoid Money Problems In The Home

Goal setting can be a powerful way to achieve your financial goals sooner.

As Orison Swett Marden once said, “All who have accomplished great things have had a great aim, have fixed their gaze on a goal which was high, one which sometimes seemed impossible.”

While goal setting can be effective, if you’re in a relationship it’s important to set goals as a couple to make sure you’re both on the same page.

Otherwise, a lack of consensus on goals can lead to arguments, or worse.

According to a result from a poll by BMO, money is the leading cause of divorce In families.

The poll finds that 68% say fighting over money would be their top reason for divorce, followed by 60% saying infidelity and 36% saying disagreements about family.

That’s right, couples may be more willing to forgive cheating than overlook money issues.

That’s why it’s so important to make sure your financial goals are properly aligned with your partner’s.

How To Set Financial Goals Together With Your Partner

Firstly, it’s important to recognize that setting financial goals with your partner is not a plug and play, it involves a series of steps that involve some personal intimacy.

What has worked for your friend would most probably not work for you, you have to understand your realities and walk within it.

While it would be nice to be able to jump right to the goal setting part, it’s important to build consensus between each other before tackling goal setting.

Figure Out Your Long-Term Plans Together

The worst thing that can happen to partners is if they both have two far apart long-term plans and don’t find a way to synergize.

To get started right, you need to both be on the same page.

For instance, would you like to purchase a home? What about starting a family or raising a child, are you looking at getting a PhD? Do you want to do these things in the near future or the distant future?

Once you’ve found some common ground on goals, the next step is figuring out your household necessities.

What do you need at home? What are the household items you should spend money on? How much?

Decide on this and set a budget for it, you can decide that you want to cut down on certain areas to enable you save cost.

If you decide to save in a certain area of your budget, make sure it’s a decision the both of you have agreed on.

For example, if your partner is a foodie and you decide to cut back on groceries, it could lead to trouble.

Design a Joint Financial Plan

Two cannot make any progress together except they agree.

Another great way you can grow closer together as a couple is to agree and develop a joint financial plan.

Something that is born out of the confluence of your hearts and desires. Something that gives you both equal satisfaction.

By taking the time to develop a joint financial plan, you’ll have an easier time setting financial goals and figuring out how soon you’d like to achieve them.

As a way of keeping yourselves in check, it helps to have regular “money check in’s” with your partner.

You can use this opportunity to talk about how your finances are looking for the coming month and any concerns you might have.

Get on With These Common Financial Goals for Couples

In case you are looking to start a joint financial goal with your partner but don’t know where to start, the list below comprises some of the most common goals that couples can set for themselves.

Being debt-free

Debt may just be a four-letter word, but the consequences may be tenfold.

By setting the goal of paying off your debts as quickly as possible, you can free up money to go towards more fun goals that you both value like a dream vacation or an early retirement.

Living within means

Spend-less-than-you-earn. It seems simple enough, doesn’t it?

While it may seem simple in theory, it’s tougher in practice but honestly, you really do not need to impress anyone; you just have to be happy together.

By taking the time to create a budget and track your spending, it can go a long way in keeping your spending in check as a couple.

If a budgeting app works for you, use one, if you prefer to speak with a financial specialist, you can talk to one for free at Page Financials. Walk into any of our offices or call 016317243. You can also send an email to customer@pagefinancials.com requesting to speak with a financial specialist.

Building an emergency fund

Life has a way of happening. Everything can be going great, when suddenly your car breaks down at the side of the road leaving you stranded.

It’s a good idea to work towards building an emergency fund together.

To Put The Icing On The Cake, Only Set SMART Goals.

It’s ok to shoot for the stars, but it is important to acknowledge where you are standing and the tools at hand.

Bottom line is; do not make goals that are not realistic given a time frame. Follow the SMART route when making financial goals as a couple.

Here’s a typical example of how to set a SMART goal for couples.

S = Specific: “We want to have 1 million naira in our emergency fund.”

M = Measurable: “We will achieve this by saving 40% of our monthly incomes and selling a few items we no longer use.”

A = Achievable: “50% of our salary will be sufficient to sustain us through the month, so we can afford to put away 40% towards our goal and still have 10% in case of any unforeseen emergencies.”

R = Realistic: “40% of our salaries every month from now till July will amount to N1 million.”

T= Timebound: “We want to have 1 million in emergency fund by July 2020.”

Make tracking your progress a game. Relationships are supposed to be fun. Once you hit certain financial milestones, go out and celebrate.

Need further practical tips on building a rock-solid financial goal together? Call us on 016317243 or send an email to customer@pagefinancials.com