Money To Live

March 30, 2010

More on the joint money discussions

Filed under: Uncategorized — by moneytolive @ 1:23 am

Anita asked,

What’s hard about the joint money discussions? Is there a sticking point or is it just “awkward” (and why :) )?

Probably our reasons are in line with what a lot of people face:

  • The joint money discussions are new for both of us. Though I have talked about my finances with lots of people, and I have talked with many people about their finances, the conversations were never this relevant/personal to both parties.
  • I am taking on debt by entering into this marriage: a mortgage. Neither of us have car loans, student loans, or credit card debt. I have never had debt, and, on my own, I would not take on this much.

Because I am not comfortable with taking on debt, my partner and I have a three-pronged plan that makes me feel better:

  • We have a plan for establishing a large emergency fund, or cash reserves, to cover mortgage payments for an extended period of time if my partner loses his job or seeks lower-paying employment. We cannot meet all of our monthly expenses on my (current) income alone. Of course, hopefully my income will increase over the next year, and then I probably could cover our minimum monthly expenses.
  • We have a plan to pay the house off early. While there are too many unknowns to put a deadline on this, it is important to both of us, and we will revisit the early-payoff discussion regularly.
  • We will avoid taking on any new debt. We both own our cars outright and are making preemptive monthly car payments to ourselves. When we need a new vehicle, we should be able to buy one outright.

I would love to hear what my readers have to say about joint money discussions.

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