4 Tips for Merging Finances when Moving in Together in Encinitas

When moving into a new home with your significant other, many people choose to merge their finances. According to Forbes, only 16% of women and 18% of men say they keep their finances separate when moving in with their partner. But money can be a touchy subject, and merging finances can be a big adjustment to make. If you’re planning to merge finances with your significant other in Encinitas, Realtor.com offers some helpful tips to make the transition go smoothly.

1. Communication

Communication is the cornerstone of every relationship, especially where money is concerned. It’s important to have a frank and honest discussion about your shared finances, including your short and long-term financial goals. Discuss any large expenses you plan to make, as well as being open about any credit issues or major debts like student loans.

2. Divide Expenses

When you and your partner are discussing finances, it’s a good idea to determine how much each person can contribute toward joint expenses, as well as savings. If you and your partner’s income and expenses are about the same, a 50/50 split is usually the fairest option. However, many couples divide their financial obligations differently. The most important thing is to be on the same page as your partner, and come to an arrangement that makes you both happy and comfortable.

3. Sign an agreement

While it may not be the most romantic idea in the world, having a written and signed agreement could provide you with legal protection down the road. Once you’ve determined your financial plan, write the arrangement out and have both of you sign it. Make sure each of you have a copy of the agreement, just in case you need it later on.

4. Maintain your Independence

Just because you are merging your finances, that doesn’t mean that both of you should put all your eggs in one basket. It’s important to maintain some financial independence with separate bank accounts and credit cards. This will allow you to keep some funds separate in case of emergencies, or if you want to make a purchase without being second-guessed. This is especially true if marriage is not in the near future.

Moving in together is a major step in a relationship, especially when you join your finances. Taking the time to get in-sync with your partner will help secure not only your finances, but also your relationship.

By Linda Moore

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