You are young, financially independent, head over heel in love with each other. You feel like the whole world is your oyster. Nothing can go wrong. But then it does. You don’t know when or how friction starts happening. You guys started bickering with each other. Sound’s familiar, doesn’t it? That’s because you are not alone. According to a survey conducted by folks at CDR-Report, more than 70% of couples argue about the money. Arguments related to the financial decision are the leading cause of friction among young couples across the globe. The good news is usually things get better when you get older. But, do you really want to wait till you are old and wrinkly for things to tone down. No right? That’s why we have come up with five financial mistakes that young couples do. If you choose to avoid these five mistakes you can start living a far healthier life as a couple without having to wait for getting old.
- Wedding.
Most of the problem starts when you get married. So, we thought why don’t we start from the top. PaperDoers did a study on how extravagant weddings can start friction among young couples from the get-go. The wedding industry is a huge industry. A below average or average wedding costs five to six-figure amount across the globe. With the ever-changing financial market, it’s not as easy it was back in the days. Incomes have gone down, expenses have skyrocketed. People are taking loans to get married. Most young couples already have a student loan over their head. Then you take a loan to get married. So even before you start your new life with your partner, you have a huge debt over your head. And, paying it off is no easy task. Be smart, before you get married just take a long hard look at your finances and decide do you actually need that extravagant wedding?
- Rent.
The financially independent couple usually makes this mistake. We all know how expensive rent has become. Especially in big cities. And, young couples tend to go for an apartment which is located conveniently near their offices. Which is an expensive choice. So, now enough, though you guys are earning well you guys can’t go out much cause the cost of living has gone up, rent is making a hole in your pocket. Most nights you are in your apartment running out of things to talk about. Thinking back on the time you guys use to go out almost every evening to chill and have fun. Maybe, that’s why they say “familiarity breeds contempt”.
- Inflation.
Most people when they were in college had no clue how to handle their finances. They use to dream about how they’d do this, they’d do that when they would start making money. Some of them actually do manage to land a high paying job. But, they are still those people who have no clue about money management. Now, these clueless people are eligible for loans because of their jobs. They start purchasing the things that they always wanted like a nice car, a big house takes loans if need be. They get accustomed to things. Then they get married. Slowly reality sinks in when you have to pay property tax, car insurance, health insurance, utility bills, etc. The young couple should go for a modest lifestyle. This will give them a chance to save and invest. Prepare for the future.
- Foresight.
Most young couples lack foresight. Let me be honest here people in general lack foresight. Even the ones who have, their foresight gets clouded when they start making decent to a good amount of money. They start going out more, party more often. Paying triple the price for a drink they have no clue about at a place where the music is loud enough to give you a migraine. Going on shopping sprees. Without realizing they need funds for a rainy day too. And, when that day comes they crumble under its pressure. It’s good to have a foresight, it’s good to save funds for a rainy day. It’s crucial to regularly plan for the future.
- Keeping secrets.
The growing divorce rates, crumbling marriages have made young couples insecure and that insecurity stops them from sharing their actual financial situation from their partner. Some keep secrets related to their debts and some about their savings. “Keeping a secret from your partner is never a good idea” – says Nelly, HR manager from TopAssignmentExperts. It’s not a sign of a healthy relationship. Rather than keeping your financial situation secret just keep different accounts.
Disclaimer: This content does not necessarily represent the views of IWB.