“Knowing your money personalities, and having regular money huddles that begin with the END in mind, is key to successfully managing money as a couple. Some couples stick with their own individual way of managing money, which may or may not mesh with their spouse’s. Others may take the responsibility all on their own shoulders or shove it onto their spouse instead. Some spouses even lie, cheat, and overspend, and cause all trust within the relationship to be a distant memory.”
One of the biggest challenges in personal finance can be managing money with your spouse or partner. If you don’t agree on money basics, like budgeting, spending, and saving, that can cause serious problems in your relationship. But don’t worry—if you’re fighting about money or don’t think you can ever see eye-to-eye, there are ways to settle your differences.
I interviewed Bethany and Scott Palmer—the authors of First Comes Love, Then Comes Money—to learn more about specific techniques that couples can use to improve their financial lives. Here are 5 tips for managing money that can dramatically improve your relationship:.
Tip #1: Know Your Money Personality
Understanding your “money personality” is the key to ending conflicts about finances in your relationship for good. Your money personality is the distinct way that you think about and handle money.
See if you recognize yourself in one of the following 5 money personalities:
The Saver – Likes to pinch pennies, hates parting with money, and thinks everything is overpriced. This type likes to research purchases and rarely spends impulsively. Savers are organized and trustworthy with money.
The Spender – Loves to buy for themselves and perhaps for other people as well and gets a thrill from making a purchase, even if it’s something inexpensive at a thrift store. Spenders live in the moment, buy on impulse, and don’t differentiate between wants and needs.