Having trouble thinking about common financial goals with your partner? Brainstorm about them and take control of both your financial lives.

Money matters are often a hot topic for many couples as combining finances with another human being who may have different attitudes about money can be tricky.

Today, we consider the common question – what are financial goals both of you can share and pursue together?

Differentiating between shared financial goals versus individual financial goals is important in order for you to maintain your personal finances and your household finances in a more orderly fashion.

We review some of the common shared financial goals that real couples pursue.

Goal #1: Housing

This is one of the most common financial goals that almost all couples strive for. Housing is one of the most important physical asset that provides both of you with a strong sense of security.

When you are starting off on your journey with your partner, aim for a home that is affordable and which serves both of your needs. It might be that both of you are working, and hence need to be near the city and public transportation. Renting might be a good option at this point.

Size does not really matter at this stage of the journey as both of you are more focused on getting your careers off the ground.

However, when the time comes when both of you want to welcome new additions to the family, the goal of housing becomes more on how to raise your children in an ideal environment and physical space.

Sharing this common goal of providing the best housing to both you and your children, will bind both of you together willingly and strengthen your relationship with each other.

Goal #2: Children’s Education

There comes a point in time when your children will be front and center of your priorities. You want to prepare them as well as possible to face the real world when they grow up. This is not something that you should leave only one of you to be responsible for. Raising your children is a shared responsibility.

Considering the cost of education these days, it is more practical and realistic if both commit from the start to plan for your children’s education and save for them now. Begin strategizing what you options think would best suit your children to prepare them for adulthood. An all-rounded education requires deliberate choices and you would also need to plan for accumulating money to fund these choices.

At the very least, one major financial goal that both of you should focus on – tertiary education. You can start by investing into education funds such as SSPN-i to formalize the commitment and obligations for your children’s education.

Goal #3: Shared Investment Plans

Financial literacy has indeed been increasing among Malaysians, especially millennials. Investments are becoming more important to everyone to stave off the effects of inflation every year, and to generate extra returns.

The idea of shared investments is beneficial in that it has a check and balances on both you and your partner’s decisions. Two heads are better than one.

Mistakes are inevitable when you are investing, but many a time people make mistakes because of arrogance and greed. Having your partner involved in the investment process can help you recognize mistakes before it happens when your partner calls you out on it.

Furthermore, by pooling your money together, you will be able to reduce the cost of your investments. You will surely know this when you have paid for many of the transactions fees when you are trying to buy stocks from any trading platforms.

Goal #4: Emergency Savings

The importance of establishing such an emergency fund should not be taken for granted. You should be thinking about this in terms of how a combined emergency fund could actually serve to strengthen your relationship with your partner.

The building of an emergency fund facilitates the discussion on how to support each other when the need arises, and gets both of you to properly consider what are the risks to your household finances TOGETHER.

To get started on this, think about the risks that you would probably face in terms of your health and job security currently. For example, you might be afflicted with an illness or lose your job suddenly. How long do you think you would need to recover or find a new job? Being conservative is important, hence you should expect that it will take about 6 to 12 months. 

The emergency savings should theoretically cover the period that you or your partner could be out of action. Starting such an emergency fund would take some time, but think about allocating about 5% of total income to it every month. It might not be much but consistently contributing to it, increases the feeling of security to both you and your partner.

Goal #5: Debt Reduction

You can’t escape it, nor can you live without it. Debt is something that many of you have to accept in the beginning of your financial life.

Houses and cars are too expensive for lump sum purchases so they are almost impossible to buy without loans. However, nobody wants to be indebted to someone, as the IOUs hanging around your neck limits your spending freedom.

For couples, this becomes increasingly frustrating as you want to provide for your partner and children and not be stressed about the amount of interest and debt that you have to pay.

Focusing on reducing debt together can pool both you and your partner’s income and funds. Together, review and prioritize which debt should be repaid first, taking into account other required spending such as on food and housing too.

Goal #6: Retirement

While this may not be on your radar now, you should plan this together with your partner starting now. The earlier the better.

There are many instances that couples get into arguments because they don’t understand fully the bigger picture of their lives together in the future.

Thinking about retirement life will bring both you and your partner together to decide the best course of action and planning for your finances now.

If both of you would like to travel every year after retirement, you will need to start now in planning your finances and investments to generate the required amount of future money.

Both of you might want to settle down in a rural area closer to nature after the children are out of the house. You will probably need to determine the location and cost of the property or land together with your partner.

Goal #7: Dating Fund

This might seem trivial to many couples, with their heavy commitments of career, family, and children, but many have underestimated the importance of a dating fund.

Before most of you got married or serious with each other, the most satisfactory time in your dating life was actually spending time with your partner doing things or going to other places together. That was and is still the best way to build the foundation of your relationship with your partner.

As responsibilities and obligations increasingly occupy both your times, the relationship gets increasingly strained as both of you spend less time together.

Committing and planning goals through a dating fund, could re-establish the most important element of your relationship – time with your partner. Having something to look forward to could really go a long way in continuously building the foundation of your relationship.

Conclusion

Life together with your partner is vastly different than when you were flying solo as a singleton. Personal finance becomes more complicated, but you don’t have to face it alone. You can plan and aim together with your partner for common financial goals such as housing, children’s education, shared investment plans, emergency buffer funds, dating funds, debt reduction, and retirement.

 

You May Also Like

Are there any other financial goals that you are sharing with your partner? Let us know in the comments below!