Money and Finance
Opening a Joint Account with your partner is a huge step towards a more serious commitment into your relationship.
Are you ready for that level of commitment?
Don't get me wrong, there's a HUGE difference between being ready to commit and committing to be ready.
Simply put, being ready to open a joint account as a commitment and opening a joint account to BE committed is very very different.
Never ever open a joint account simply because you believe that this is the next step in a committed relationship. Trust me, you'll know when that time is here.
Now, why open one?
Maybe you want to commit to share your financial issues together, or combine your finances for simplicity and convenience. There's nothing wrong with that. But you don't necessarily have to combine them together and let it be. You should both keep a separate individual account and open a joint account together. It should serve as an addition not a replacement. :)
Contribute equal amounts each month and let the funds pay for your groceries, or bills etc. Heck it can even pay for your dates, movies. It'll give you an idea of what to expect and a feel of how to use it :)
Or maybe you're on a more serious level. You decided you want to save up for your wedding, house, honeymoon etc. You contribute an equal amount every month and watch it grow from there. Maybe you wanna take those funds and invest it (both you and your partner should discuss this beforehand)
The thing is, before you open a joint account, BOTH parties, not just you OR your partner should be ready and have a common understanding of the matter at hand.
They should not be opening with you just because they are afraid of offending you etc etc.
And needless to say, there should be an existing level of trust between you and your partner. You don't want to risk them drawing all your money and then disappearing into the sunset..
You can now view your partner's spending habits and decide if he/she is the one for you. Maybe you're both hardcore savers (which is a good thing) or you both are hardcore spenders (in that case a joint savings account is absolutely pointless) but most commonly one would be a spendthrift and one would be the saver.
Opening a joint account is not supposed to be fun, or lovey dovey. It's about bringing maturity into a relationship. If you're not financially ready or mature enough, don't open one. You'll only complicate things. Arguing about money definitely isn't romantic now is it? :)
Question: What if we break up? What if this relationship doesn't go as expected? Won't it complicate things even more?
Answer: Well love, life isn't always a bed of roses. Things don't always go as expected. Therefore, you should contribute an equal amounts each month. If anything unexpected happens, just divide the money by half. Simple.
Key points to take away:
1. Being Financially Mature
2. Strong level of trust and commitment
3. Mutual understanding.
4. Have a common view, one saving and one spending isn't going to workout.
5. Have a separate bank account, a joint account should be an addition.
What does everyone think? I'd love to hear from you :)
Posts you might be interested in:
http://teenageinvesting.blogspot.sg/2014/09/applying-for-your-first-credit-card.html
http://teenageinvesting.blogspot.sg/2014/09/my-investment-journey-update-september.html
http://teenageinvesting.blogspot.sg/2014/08/how-to-survive-financially-during.html
Signing off,
Teenage Investor
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Money and Finance
Are You Ready To Open A Joint Account With Your Partner?
Opening a Joint Account with your partner is a huge step towards a more serious commitment into your relationship.
Are you ready for that level of commitment?
Don't get me wrong, there's a HUGE difference between being ready to commit and committing to be ready.
Simply put, being ready to open a joint account as a commitment and opening a joint account to BE committed is very very different.
Never ever open a joint account simply because you believe that this is the next step in a committed relationship. Trust me, you'll know when that time is here.
Now, why open one?
Maybe you want to commit to share your financial issues together, or combine your finances for simplicity and convenience. There's nothing wrong with that. But you don't necessarily have to combine them together and let it be. You should both keep a separate individual account and open a joint account together. It should serve as an addition not a replacement. :)
Contribute equal amounts each month and let the funds pay for your groceries, or bills etc. Heck it can even pay for your dates, movies. It'll give you an idea of what to expect and a feel of how to use it :)
Or maybe you're on a more serious level. You decided you want to save up for your wedding, house, honeymoon etc. You contribute an equal amount every month and watch it grow from there. Maybe you wanna take those funds and invest it (both you and your partner should discuss this beforehand)
The thing is, before you open a joint account, BOTH parties, not just you OR your partner should be ready and have a common understanding of the matter at hand.
They should not be opening with you just because they are afraid of offending you etc etc.
And needless to say, there should be an existing level of trust between you and your partner. You don't want to risk them drawing all your money and then disappearing into the sunset..
Opening a joint account is not supposed to be fun, or lovey dovey. It's about bringing maturity into a relationship. If you're not financially ready or mature enough, don't open one. You'll only complicate things. Arguing about money definitely isn't romantic now is it? :)
Question: What if we break up? What if this relationship doesn't go as expected? Won't it complicate things even more?
Answer: Well love, life isn't always a bed of roses. Things don't always go as expected. Therefore, you should contribute an equal amounts each month. If anything unexpected happens, just divide the money by half. Simple.
Key points to take away:
1. Being Financially Mature
2. Strong level of trust and commitment
3. Mutual understanding.
4. Have a common view, one saving and one spending isn't going to workout.
5. Have a separate bank account, a joint account should be an addition.
What does everyone think? I'd love to hear from you :)
Posts you might be interested in:
http://teenageinvesting.blogspot.sg/2014/09/applying-for-your-first-credit-card.html
http://teenageinvesting.blogspot.sg/2014/09/my-investment-journey-update-september.html
http://teenageinvesting.blogspot.sg/2014/08/how-to-survive-financially-during.html
Signing off,
Teenage Investor
- Weekly Roundup - August 31, 2013
Another week has come and gone and it seems like each one goes by faster than the previous. Everything is settled with the upcoming house purchase so now we just have to wait until closing. We're about 1.5 weeks away and my wife and I are more...
- Life Goes On In The World's Most Expensive Country
Hello everyone, it's been quite some time since my last post. Have been catching up with my studies, going for army check-ups and everything else that goes on in a life of a polytechnic student. I recently received an email from Hady, who found...
- Is It Better To Invest Alone Or As A Couple?
It got me thinking for quite some time, if you are a budding investor but your significant other isn't interested or knowledgeable about it, what should you do? Maybe your boyfriend is not aware that you have an existing portfolio. Or your wife is...
- How Much Do You Need To Save For A Decent Wedding In Singapore?
In my previous blogpost I talked about having a plan in mind as you begin planning and saving for the future. For my future, marriage is definitely one of the main points in my life. http://teenageinvesting.blogspot.sg/2014/09/is-having-no-money-really-reason-not-to.html...
- Why Every Singaporean Should Have An Emergency Fund ; Especially Teenagers.
Emergency Funds.... what are they? Why should we have them? Many reasons. In the basic sense of the word, Emergency Funds are for emergencies. Let's say, you currently only have your savings. And suddenly, an unexpected expense occurs. Maybe you got...