Love and mone y

Be­fore mov­ing in to­gether have a talk about fi­nances

Weekend Witness - - Mone Y -

COU­PLES oft en o ver­look the im­por­tance of un­der­stand­ing each oth­ers’ fi­nan­cial habits when mov­ing in to­gether, said Eu­nice Sibiya, head of FNB Con­sumer E ducation.

One of the big­gest ben­e­fits of liv­ing with some­one is be­ing able t o split the bills and pur­chase more ex­pen­sive items. But there are some fi­nan­cial t opics that need t o be dis­cussed t o a void pr oblems. 1. Mo ving int o y our par tner’s house If you have equal r espon­si­bil­i­ties in terms of rent and the c on­tract, it is fairly sim­ple t o de­cide ho w to split the r en­tal r espon­si­bil­i­ties.

It is mor e c om­pli­cated if one of you o wns the house.

Dis­cuss whether the other will be pay­ing rent in or­der to live there or not.

Talk about how in­surance, mu­nic­i­pal­ity bills, up­keep, ren­o­va­tions and other p ay­ments will be p aid f or.

Both of you need to be com­fort­able with the un­der­stand­ing that you come t o, p ar­tic­u­larly bef ore y ou make an y big in vest­ments int o the house. 2. Mone y in — money out Your part­ner is un­likely to dras­ti­cally change his or her spend­ing and sav­ing habits and you have to be c om­fort­able with their monthly ex­penses and p ay­ments.

Have an open and trans­par­ent dis­cus­sion about what each per­son’s fi­nan­cial po­si­tion is.

Take dis­pos­able inc ome (the amount of money you have after tax), min­i­mum monthly re­pay­ments, debit or ders and c on­tri­bu­tions t o sa vings, int o ac count.

Also dis­cuss wants ver­sus ne­ces­si­ties and items that you are not will­ing to c om­pro­mise on. You can open a house­hold ac count and de­posit funds into it at the be­gin­ning of each month or lis t the e xpenses and al­lo­cat e it bet ween the two p arties.

It is eas­ier f or each p arty to take re­spon­si­bil­ity for cer­tain shared bills than t o split each bill each time.

If you open an ac­count, re­mem­ber to set spend­ing rules such as ex­actly what pur chases ar e allo wed.

Do the same with a sa vings ac ­ count. Each party de­posits a monthly amount which can be withdr awn in the e vent of emer gen­cies. 4. Debt: what’ s y ours is y ours and not our s Each party should man­age their own debt.

Com­pli­ca­tions arise w hen it ems are bought t ogether, p ar­tic­u­larly larger it ems that c ould not be pur ­ chased with cash and that ar e pur­chased on s tore ac counts.

“If you shop to­gether, make a re­ pay­ment agr ee­ment on the spot, ” sug­gests Sibi ya. 5. Be pr oac­tive about split ting up It is har d t o imag­ine br eak­ing up when you are in love but you will have to dis­cus s this.

De­cide up­front who will move out, to whom the items that you bought to­gether will be­long , w ho will be­come own­ers of any pets and how fi­nal bills will be set tled.

— Business Ed­i­tor.

PHOTO: SUP­PLIED

There ar e s ev­eral fi­nan­cial e ffects t o mo ving in t ogether. 3. What about monthl y house­hold bil ls?

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