Riding the money waves with your partner

LIFESTYLE | May 2022

Life is full of challenges and change. Some are for good, some are not so good. It’s great to feel prepared for when life throws a curveball your way.

Whether it’s a positive life-change (like an addition to the whānau) or something negative, (such as a health issue or redundancy), an assessment of your savings is required to face the challenges ahead. Being organised is key.

The more prepared you are and the more money you have managed to set aside, the more choices you will have.

As financial advisor Lisa Dudson says: “We are trying to take the stress out and create a situation where people have more choices.”

One way you can do this as a couple is by having a ‘rainy day fund’. This cushions us from any financial implications which come with change or challenge.

Experts agree this should amount to three to six months of expenses. Ideally it would be six months, but three months is more realistic for most.

Having money tucked away ensures a couple will not get completely derailed by an unexpected event.

Consider having a monthly money talk to catch up on how things are tracking or talk through unexpected bills. Make it regular – say on the first Thursday of every month. Put a time limit on it to ensure you stay on task – an hour maybe – and think about having an incentive for your catch-up, like getting your favourite pizza or dessert.

And if a couple decides to break up, what then of their money?

Unsurprisingly, finances are easier to untangle if well organised. If a couple has discussed money and set some plans in place, perhaps with the help of an independent expert, dividing property and money is likely to be simpler.

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Disclaimer: The views expressed are those of the individual featured, speaking in their individual capacity and do not necessarily reflect or represent the views of State/IAG New Zealand. These advertisements do not offer specific advice and you are responsible for your own decisions about financial planning, investment and risk. All information presented is of a general nature, merely for informational purposes and is not intended as a substitute for professional and/or financial advice. Should you decide to act upon any of the information presented, you do so at your own risk.

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