This guide will take you through the timeline of your love life and how to handle the finances with care. By Ezgi Ceren Işık, relationship and dating expert at slow-dating app, Once, and financial planner, Warren Shute MSc. CFP.
Your credit rating is a no go for the first interaction or date.
Renting or buying your first home together is a big commitment and investment in your future.
First, Warren advises that you each write down what you want from life and then discuss it supportively. For both renting and buying it is important that you analyse your outgoings in detail to confirm affordability to avoid putting any financial pressures on the relationship.
Your first mortgage can be a gruelling process so be honest with each other about existing debts before starting. Transparency from the start will be less damaging than ten years down the line with a mountain of debt. Talk to your bank about managing your finances - they are the experts so will help you back on your feet.
Warren says, “If you truly love someone, you can be happy with modest financial means or financial abundance. What’s important is that you share the same life and financial values, so it shouldn’t be a deal breaker”.
As soon as you feel ready to take the first step together book an appointment with a mortgage advisor. They will support you through the whole process but be mindful that some do charge commission and fees.
If you don’t fit the criteria your financial advisor can you help you find other suitable products.
Try using Warren Shute’s Bank Account System with your partner.
1) Do I need this?
2) Do I want this?
3) Can I get the same experience cheaper?
Do you have a gym membership that you don’t use or can pay less for? Do you buy lunch every day when you can prepare lunches at home?
The average cost of a wedding in the UK is now £30000 and the average length of an engagement being just under two years. This does not give much time to save for the fairy tale wedding.
Weddings are an ideal example of how a WAM allowance can work to your advantage. Avoid getting into debt with loans and credit purchases. Also make sure you invest in wedding insurance to keep you protected from the unexpected.
“Weddings can be stressful for a relationship. Between the finances, family and food there are hundreds of decisions to make. A major problem couples have is when a lot of responsibility falls to one person instead of making decisions together. Why not try turning your planning into a date night and make it fun? Just make sure to take time to appreciate the precious moments right from engagement to the honeymoon. Every now and then just pause and take a mental picture - you won’t regret it,” says Ezgi.
From birth to 18 years old children can cost up to £75000 each so planning and having a degree of financial security is always recommended.
When you decide the time is right to expand your family, start your research.
https://www.gov.uk/browse/childcare-parenting/financial-help-childrenfor information and resources. It is also wise to have a chat with your employer about any existing maternity or paternity packages. Then take a look at the everyday costs you will encounter such as nappies and clothes and make sure you can afford these even when your income changes.
When children start school finance will not be on the curriculum. Teach them about money, budgeting and the techniques to give them a healthy financial future.
Breakups can be messy and the added pressure of being financially involved with another person can mean breakups are not quick. Many couples do not have a safety net of savings for a move so co-habiting can go on for months after the separation.
When renting you have options in your contract but a mortgage is much more complicated.
It is recommended that you seek help from a solicitor or the Citizen’s Advice Bureau as soon as possible before it affects your credit rating- just make sure you do not stop making payments.
When it comes to your finances staying organised throughout your life is essential. It will ensure you leave a legacy of security behind for your loved ones. There are several things to consider when you plan a life together and although no one likes to talk about death it is inevitable so knowing what you and your partner want is important.
Book a meeting with a lawyer to take you through the process or why not try a legacy will? By donating an amount to charity on your passing they write your will for free. It is important to know your partner or children are secure when you are gone.
Funerals in the UK cost anywhere between £3500 and £4500 which can be a shock to those left behind. Look into the various plans available which involve paying a few pounds a month to cover any expenses incurred after your death. This is something you can discuss with a financial advisor.
If in doubt speak to an advisor about how to manage this, especially if your assets are worth a significant amount.