Building your relationship with money

Building your relationship with money - Afrika Kesho

     Many of us who enter romantic and platonic relationships find it difficult to start a conversation about how to handle our finances together with our partner.

Relationships play a huge role in defining your financial goals and can be a negative or positive factor in making sure you reach those goals and the primary influence stems from the many different decisions you make regarding money.

To check whether or not your relationship is making or breaking your bank, you have to first identify what kind of spender you are in a relationship so that you can be able to make changes to your choices in order to secure your pocket.

There are 5 top spending personalities and they range from big spenders to big investors:

  • A big spender typically spends money on luxurious items and lives a fancy lifestyle. They always want to have the latest gadgets and accessories and don’t care much about the cost of each product.
  • Secondly, we have the debt freaks. This personality spends a lot more money than they make, they are privy to taking out loans regardless of the amount of debt they already have.
  • Next in line are the savers, popularly known to most as cheapskates – they hardly ever want to spend money and will go to extreme lengths to save every cent.
  • The shoppers, on the other hand, are big on buying, even when it’s unnecessary. As long as there’s a sale coming up, they’ll be there to spend even the last Rand because they refuse to miss out on a “good buy”.
  • Lastly, we have the big investors. This group is addicted to seeing their money grow. The disadvantage of this though, is that they are most likely to fall for pyramid schemes.

Not everyone is accounted for in this list, but everyone can identify some characteristics that they can relate to in this list.

Taking into account the types of spending personalities mentioned, identify which one of these you and your partner are, each of the personalities has their down side and there’s absolutely no harm in taking a positive element of each personality to make your financial relationship better.

Couples gearing for long-term relationships such as marriage or having kids need to be careful about what kind of spender their partner is because if your partner is a spending addict this will negatively impact your pocket, regardless of how great you are at managing your money. So, sit down and have a chat with your partner. Discuss what each of your individual financial goals are, what your financial goals are as a couple, and what system you can build around yourselves to achieve all these goals. Ask yourself what things might change in future and how they can affect you, then plan for them – what will you do if you get a promotion and have to move to another province? Or if you get fired? Or the geyser bursts? Being on the same page with your partner about how to handle your finances is a great way to strengthen your relationship with them.

Long-term couples also need to look into things such as the marital property system they will go for as well as considering prenuptial agreements to protect their money. I will be touching on these issues in my next article.

 

This article was written by Karabo Rantho.

You can contact Karabo Rantho by clicking on the social media buttons below, or by emailing her on: karabor@afrikakesho.co.za.

 

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