When you commit to a long-term partnership or marriage, you’re essentially committing to join forces to work towards shared goals and to build a future together.
But research shows that many couples struggle with openly discussing finances and planning their financial future as a team.
According to the “Everyday Wealth in America” 2022 report, only 37% of couples actually delve into the details of their financial goals, and 38% regularly talk about their day-to-day finances.
This lack of communication makes it hard to accumulate wealth together when partners have different money habits and perspectives.
This process is the foundation of your shared financial planning. For many couples, it’s also a source of stress and uncertainty. Talking about money can feel complicated and emotionally charged. But it doesn’t have to be.
True wealth management for a couple isn’t just about numbers on a spreadsheet; it’s about communication, shared dreams, and a unified strategy. Here are eight ways you can work together to build a strong and prosperous financial future.
1. Get on the Same Page About Your Goals
Before you can build a plan, you have to know what you’re building toward. Sit down together and talk openly about your dreams. What do you want to achieve in the next year? How about in five years? Are you dreaming of an early retirement? This is where your long-term retirement planning begins, by painting a picture of the future you both want. Getting these goals down on paper transforms them from vague wishes into a concrete destination.
2. Create a Shared Budget (or Spending Plan)
The word “budget” isn’t sexy, so let’s call it a spending plan. This isn’t about limiting your fun; it’s about empowering your choices. Understanding where your money is going each month is the first step toward directing it where you want it to go—toward your shared goals. There are many ways to do this, from simple spreadsheets to budgeting apps. Find a system that works for both of you.
3. Automate Your Savings and Investing
One of the most powerful things you can do for your financial future is to make saving and investing automatic. Set up recurring transfers from your checking account to your savings, retirement, and investment accounts each payday. By paying yourselves first, you remove the temptation to spend that money elsewhere. It’s a simple habit that builds wealth consistently over time.
4. Systematically Pay Down High-Interest Debt
High-interest debt, like credit card balances, can be a major drag on your ability to build wealth. The interest works against you, compounding just as powerfully as your investments compound for you. A sound piece of financial planning advice is to create a focused plan to tackle this debt aggressively. Whether you use the “snowball” or “avalanche” method, working together to eliminate it will free up significant cash flow for your future.
5. Invest for the Long Term
Saving money is for security; investing it is for growth. Once you have a solid emergency fund, it’s time to put your money to work. Harnessing the power of compound growth is the engine that will drive you toward your long-term goals. This is where the guidance of a skilled investment advisor can be so valuable, helping you build a portfolio that reflects your shared timeline and risk tolerance.
6. Protect Your Family with the Right Insurance
Building wealth is only half the battle; protecting it is the other half. Life is unpredictable, and having the right insurance in place acts as a critical safety net. This includes life insurance, disability insurance, and adequate home and auto coverage. It’s not the most exciting part of finance, but it ensures that an unexpected event won’t derail the future you’re working so hard to build.
7. Review and Adjust Your Plan Regularly
Your financial plan isn’t a “set it and forget it” document. Life happens—you might change jobs, have a child, or decide to buy a new home. Each of these events can impact your financial picture. That’s why checking in on your plan at least once a year, ideally with your financial advisor, is so important. It allows you to make adjustments and ensure you’re still on the right track to meet your goals.
8. Work with a Professional
Navigating these conversations and decisions can be tough on your own. This is where working with a professional can make a difference. A trusted Certified Financial Planner (CFP)® can provide objective guidance and a structured path to build wealth.
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