Five Financial Things You Should Consider Before Moving In Together
Moving to a new home is never an easy thing to do. The exhausting effort it will take to pack up all your things and the hassle of taking them all out again after moving is nothing but a small portion of the whole thing. It’s even more complicated when you decide to move in with your partner.
Living together with the love of your life is something that takes a lot of thought and commitment. It is also a huge step in any relationship. For certain, many things will change and happen for both individuals and may even cause a lot of stress as living together is not at all like playing house but is real life spent together.
So, before you start to move into a new home with your partner, here are some things that you might be interested in considering. These financial tips will help you manage your finances while living out a new life with your partner under the same roof. Here are the top five financial things to consider before moving in.
Number 5: So, who pays?
Before moving in, it is important to talk things over with your girlfriend or boyfriend with regards to some expenses. Talk to your partner about the things each of you could afford paying for like the monthly rent, the electric bill, or the groceries. It is also important to discuss with your partner how your will split the expenses between the two of you. Doing this can easily save you from potential arguments once the bills start to come in.
Number 4: Creating a formal agreement.
It may sound quite over the top but creating a binding agreement between you and your partner when living together is a good thing to consider. First and foremost, you guys are not married yet and if somehow you break up, splitting the house into two is not really attainable. Settling properties and finances after a tough break up is not just emotionally draining but is plain ugly.
Creating an agreement is just like a prenuptial agreement. This agreement can cover as much as who gets to stay and who gets to leave, who gets to pay for the latest bills, or who gets to pay for this month’s rent. Having this agreement before you move in actually help you financially if ever an undesirable break up would happen.
Number 3: Purchase large things for yourself.
A break up is always a possibility. That is why purchasing large and expensive items together with your partner is not a good idea. After a breakup, you guys will probably argue even more in deciding who gets to have the fridge, the air conditioning unit, the couch, or that expensive LED internet television. So, it would be best to consider buying large stuff on your own and not involve your partner. After a split up, you won’t be held up in getting your things because you bought them yourself.
Number 2: Keeping your finances to yourself.
Many couples find it a good idea to just combine finances as it would make paying bills and the rent easier to manage. Then again, doing so would be a challenging task, especially when dividing your shared finances. It is not for certain, but there is also the possibility that your partner might clean out your account, charge up your bills making you go bankrupt, or ruin your credit score. That is why it is a must that you consider keeping your finances to yourself.
If it cannot be helped and you just have to open a joint account with your girlfriend or your boyfriend to manage the expenses, make sure that you keep most of your finances in your possession. It’s not like you are asking for it but if ever you guys would break up, at least you’re not broke.
Number 1: Check your credit report regularly.
It is no joke: Moving in with your partner is an expensive endeavor. With all the things you will need to buy like furniture and kitchen appliances, it is very possible that you will use credit to acquire them all. Some couples apply for joint loans without being aware that any failure to comply with the loan from one of them could ruin both their credit score ratings. Thus, living with your partner can affect your credit score negatively and you may not realize it if you do not check credit regularly. You can also consider credit monitoring for making sure that your credit is on the right path.
Dealing with all the financial stuff can be quite boring and unromantic. But then again, it is a significant step towards a good relationship. Taking financial things seriously by showing each other credit reports and discussing your budget can also be a little romantic when you do it together. Working out the financial aspects of living together is also a sign of great maturity and care for each other’s finances, which is why considering these five things is a must.
Many couples try to talk less to each other about money matters because they feel that it doesn’t seem to be right when in a romantic relationship. If you have been living with your girlfriend or boyfriend for some time, how did you open the topic of money in your relationship without sounding insensitive? Do you know of other things that should be considered when moving in with a new partner? Share your ideas by placing them below. Don’t forget to discuss it with friends.