Building a Financial Future with Your Partner
When it comes to building a life together, one of the most important foundations for success is financial harmony. Whether you’re newlyweds or years into your relationship, aligning your finances can help you achieve shared dreams and avoid unnecessary stress. To bring these ideas to life, we interviewed Sioux Falls couple Justin and Laura Brown, who shared their journey of financial planning as a team. Their insights and experiences demonstrate how couples can navigate the complexities of money together.
The Importance of Shared Financial Goals
Shared financial goals are more than just a strategy—they’re a way to strengthen your partnership. By working together toward common objectives, couples can build trust, foster open communication, and ensure that both partners feel equally invested in their future.
Q: When did you first realize the importance of having shared financial goals as a couple?
A (Justin): We realized the importance of having shared financial goals as a couple upon purchasing our first home together. We are both very different spenders, so we really needed to decide how we could both reach our personal financial goals while also building our future together.
Q: How has working toward shared goals strengthened your relationship?
A (Laura): Working towards goals has helped us by holding each other accountable. It’s really nice to have another person to be like “hey, is that really the smartest thing to do right now?” Finances are emotional, so having someone else keep you in check makes sure you can be reflective and then make adjustments to keep you on track of the goals you’ve set.
How to Start the Conversation About Finances
Talking about money can be intimidating, but it’s a crucial step for couples. Start with honesty and transparency. Share your current financial situation, including debts, income, and spending habits. Timing matters too—choose a relaxed moment to open the conversation, such as during a weekend coffee date or an evening walk.
Practical tips include:
Setting a positive tone to avoid defensiveness.
Asking open-ended questions about your partner’s financial dreams and priorities.
Discussing values behind financial decisions to understand each other better.
Q: How did you approach the initial conversation about your finances as a couple?
A (Justin): We got married and signed up for a Dave Ramsey class. There were definitely some hard and scary conversations that we had to have, but we’ve come so far since then.
Q: Were there any challenges or surprises during that first discussion?
A (Laura): There are always challenges and surprises when it comes to life and finances. One thing that I always remind myself is that money comes and goes. There are seasons of life, such as medical expenses or repairs that are unexpected but absolutely necessary. Having a plan and having continued honest conversations makes these challenges easier to overcome.
Setting Joint Financial Goals
Once you’ve laid the groundwork, it’s time to set goals together. These might include saving for a home, building an emergency fund, planning a dream vacation, or investing for retirement. The key is to make these goals specific, measurable, and achievable within a set timeline.
Write them down and revisit them regularly to track your progress. This not only keeps you accountable but also helps you celebrate milestones along the way.
Q: What are some of the financial goals you’ve set together?
A (Justin): The past few years we just started working with a financial advisor, who helped us set the following goals.
We started putting away additional retirement
Savings for our child
Savings for a future home
Q: How did you prioritize those goals to ensure you were both on the same page?
A (Laura): The biggest thing that we’ve done when setting these goals is keeping them simple and having that money just out of our accounts and going into separate investment accounts. The money is “out of sight, out of mind” all while saving for the 3 things that are most important to us.
Q: Have your financial goals evolved over time, and if so, how?
A (Laura): My husband and I both love to travel, so we’ve really tried to continue doing that while also saving for bigger life things. The biggest thing that has evolved over the years for us both is under-consuming. We don’t buy things that we don’t need and don’t need all the new and trendy items constantly marketed to us.
Budgeting as a Team
A budget is your roadmap to financial success. Start by reviewing your combined income and expenses, then allocate funds for necessities, savings, and discretionary spending. Some couples prefer joint accounts, while others maintain separate accounts and contribute proportionally to shared expenses.
Budgeting tools like apps or calculators can make this process easier and more collaborative. Remember, flexibility is key—unexpected expenses are part of life.
Q: Do you have a specific budgeting system or tools that work well for you as a couple?
A (Justin): We use the Rocket Money app which allows you to connect all of your accounts and see where your money is going. Additionally, we still have our separate bank accounts and all of our bills and necessities come out of one, while the other account is dedicated to investments, and we avoid touching those funds at all.
Q: How do you ensure accountability when it comes to sticking to your budget?
A (Laura): We do not expect perfection, we understand that life is life and things are going to come up. We like to have fun, and that isn’t going to change. Just being aware and having a conversation each month to regroup and see how we did helps us keep track of where we overspend or underspend and make adjustments in the next month.
Q: How do you handle unexpected expenses or disagreements about spending?
A (Laura:) The biggest thing is honesty and transparency. If there is an unexpected event that causes a large expense, we give ourselves space to be upset about it, but go back to our mantra that money comes and goes. We are doing the right things, taking the right steps, and investing as much as we can so keeping that in mind helps us give ourselves some grace.
Savings and Investments for Couples
Joint savings accounts can simplify reaching shared goals, such as a wedding, home, or family planning. For long-term goals, consider investments to grow your wealth over time. While it’s important to have joint strategies, maintaining individual financial independence can be equally empowering.
Discuss your risk tolerance and consult a financial advisor if needed to ensure your investment strategy works for both of you.
Q: Did you decide to open joint accounts, keep individual accounts, or use a combination of both? Why?
A (Laura): We have one joint account and both have our individual accounts. As mentioned above, our joint account serves as our “living life” account. The rest that racks up in savings benefits us both because we aim not to touch it and then pay off our cars, house, etc with the funds we are able to save so both joint + individual benefit us both in the long run. It really feels like a team effort.
Q: What’s your approach to saving for big milestones, like a house or a vacation?
A (Justin): We put this money away into an account that we do not touch, and it just automatically saves random funds from our account based on our spending.
Q: How do you plan for long-term financial goals, like retirement or investing?
A (Justin): We work closely with our financial advisor and he helps us make decisions based on what is going on in our lives.
Avoiding Common Money Conflicts
Money is one of the leading causes of conflict in relationships, often due to differences in spending habits, financial priorities, or lack of communication. To avoid these pitfalls:
Set clear expectations for spending and saving.
Schedule regular “money dates” to review your finances together.
Approach disagreements with empathy and a focus on finding solutions, not placing blame.
Q: Have you ever faced a financial disagreement, and how did you work through it?
A (Laura): Most couples have a money spender and a money nerd. Most disagreements come when there is a surprise expense that wasn’t discussed. Having a number ($300 for example) where you have to have a discussion before you spend that amount works well, as there is a threshold to get ahead of the conversation. The biggest thing to remember is that you are on the same team and if you can point back to the goals that you set together, it doesn’t feel like you are blaming each other.
Q: What strategies have helped you avoid recurring money conflicts?
A (Laura):
The spending threshold for a conversation
Open and honest communication ALWAYS
Third-party financial advisor
Joint and individual accounts benefit you both
Q: What advice would you give to other couples about navigating financial challenges together?
A (Justin): I highly recommend working with a financial advisor who can help you both personally but as a couple to ensure you are working towards a life that makes both people in the partnership happy.
Start Building Your Financial Future Together!
Building a financial future with your partner is an ongoing process, requiring patience, teamwork, and a willingness to grow together. By setting shared financial goals, budgeting as a team, and addressing challenges head-on, you can create a solid foundation for your shared life.
Take inspiration from Justin and Laura and start the conversation with your partner today.
Voyage is here to help you and your partner on your financial journey. From opening joint savings accounts to providing financial resources, we’re committed to helping you achieve your shared goals.
Contact us today to learn how we can support your journey toward financial harmony.
