Financial Mistakes that Couples should be careful

For a couple, besides love, money is just as important, but most couples think that talking about money is not necessary. Did you know that not talking about money at all can lead to a big fight? This time, ACU PAY gathers the financial mistakes that many couples may be having. Let’s check how much you and your spouse are planning about finances.

1. Don't know each other's finances, expenses, and debts

How much do you know about each other’s finances? Some know everything, some may want to know but don’t dare to ask. If you are planning to have a married life together, knowing each other’s financial burden, personal debt, and family debt, both at present and in the future, to find a solution together whether they help each other to fix it or not. This should be done before planning a marriage or marriage registration so that there will be no problem later.

2. Don’t know each other’s financial usage habits

All humans have different natures, as well as couples. Do you know what your lover’s money habit is like? Are they shoppers, frugal, hardworking in making money, or investors? If you love shopping but your lover is frugal, there may be a problem if you do not understand each other’s money usage habits in the first place. Try to be open-minded, listen to each other, and find a financial balance for both of you.

3. Lack of planning on who will be responsible for which part of the money

Have you always been the one who pays money and manages expenses in your marriage life? At first, it may not be a problem, but when you live together, the expense increases. When there’s no agreement or clear plan, it can be a burden on financial issues that can affect feelings and long-term relationships.

The best way for each couple is to share their responsibility for expenses as they please. Those who are willing to take charge of all expenses are okay to do so as well but must see if they can do so in the long run.

4. Lack of short-term plan in terms of emergency

Starting a marriage involves not only financial planning but also short-term plans in case of an emergency, such as an unemployed, sick, or accident.

They may gradually divide 10% of their salaries into emergency reserves for use only when necessary, with a target of at least 6-12 times the total monthly expenditure.

For example, each month costs around 40,000 baht. There should be at least 240,000 – 480,000 baht in reserve for emergencies that do not include savings for the future to use in case of an immediate lack of income or an emergency that needs to use a lump sum of money.

5. Lack of spending limitation

After knowing each other’s income and expenditure, the next thing to do is to create a budget suitable for both of them. Consider each other an equal partnership (no matter how much you earn). Both have equal rights in finance, debt, savings, and money to fulfill their marriage.

We could split the money into two bags, which is a common purse. You may help each other at 50/50 for the common purse and for each person’s expenses, which can be adjusted to suit their individual lifestyle and financial situation.

6.Don’t set financial goals together

Have you ever been afraid of the saying, ‘Live together and it feels like there’s no future’? If this happens, it could mean one side is feeling insecure in life. Thus, besides planning daily expenses and preparing for emergency reserves, the other thing that is indispensable in managing money is ‘planning for the future’ . This is a big deal and it should happen as soon as the marriage begins.

Try to get your partner excited about the future together, such as setting a financial goal in the next year, 5 years, 10 years, or 15 years by setting a goal according to SMART Goal.

For example, in five years, you and your partner plan to buy a dream house for 2 million baht. To achieve that dream, the savings must be 20% of the house price or 400,000 baht. Planning a savings plan is very important and necessary so that we can always check how close we are to our target.

Finally, Apart from love, financial planning together is an important thing that many people may overlook. In this regard, financial planning and starting love at the same time make relationships last longer.

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