You're moving in with your partner, and amidst all the excitement, you have to address a not-so-romantic topic: finances.

You must understand each other's financial contributions, goals, and plans for those unexpected challenges. There's no one-size-fits-all solution, but here are financial topics to discuss before you move in with your partner.

1) What's our budget? 💵

Prior to beginning cohabiting, it's crucial to frequently discuss and establish a clear, concise budget that suits your financial needs and circumstances. You have to lay it all out on the table. Income, debt, monthly expenses—they're all part of the big financial picture that you're now sharing.

Organize your budget into fixed, variable, and negotiable expenses. You'll be able to see where your money is going and identify areas where you can save. Download our budgeting guide to learn what items fall into each one.

2) Should we rent or buy? 🏘️ 

This decision hinges on several factors, including your financial stability, long-term plans, and the real estate market in your chosen area.

If you're not planning on staying in the same place for 3+ years, renting might be a better fit. It offers flexibility without the burden of maintenance costs or property taxes.

On the flip side, buying a home is an investment that can pay off over time. It can provide stability and a sense of ownership. However, it also comes with significant upfront costs, such as down payment, closing costs, and possibly renovations.

Another factor to consider is whether you will be co-owners or one person will be the sole owner. This decision can have legal and financial implications, so discuss it thoroughly.

3) How will we split expenses? 🧾 

It's important to establish this from the start to avoid potential financial conflicts down the line. Here are some options to consider:

💲Make equal payments

This is the most straightforward approach. Both partners contribute equally towards shared expenses such as rent, groceries, and utilities.

👫 The free-for-all approach (you pay this, I'll pay that)

This may work if you and your partner have similar incomes, but it can become complicated when expenses vary each month. Plus, there's no guarantee that one person won't end up paying more than the other.

📑 Split bills by income percentage

In this scenario, each partner contributes a percentage of their income towards shared expenses. For example, if one person earns 60% of the total household income, they contribute 60% toward bills.

4) Will we merge our money? 🏛️ 

There's no right or wrong answer to this question. Some couples choose to combine their finances completely, while others prefer to keep them separate. Here are some options to consider:

👉 Joint bank accounts

This approach means all income and expenses are shared, making it easier to manage bills and keep track of spending.

👉 Separate bank accounts

With this method, each partner maintains their account and contributes to shared expenses as agreed upon.

👉 A combination of both

Some couples opt for a hybrid system with a joint account for shared expenses and maintain individual accounts for personal spending.

5) What does your credit look like? 💳 

Your credit score can affect your ability to rent, buy a home, or even secure a loan. It's important to have an honest conversation about your financial history and work together to improve credit issues.

Check each other's debt-to-income ratio and credit reports. If one person has a less-than-stellar credit score, it could impact your joint financial decisions.

6) What are our money goals? 🎯 

Once you've discussed managing expenses and creating a budget, focus on setting financial goals together as a couple. Here are some suggestions:

• Paying off debt: prioritize paying off any outstanding debts to improve financial stability.
• Building an emergency fund: set aside money equivalent to 3 to 6 months' worth of expenses for unexpected situations such as job loss.
• Saving for a down payment on a home: if you plan on buying in the future, start saving now to reach your goal faster.
• Investing for retirement: it's never too early to start planning for retirement and setting aside money for future needs.
• Create a sinking fund: set aside money for big expenses like a wedding, vacation, or home renovation to avoid dipping into savings or going into debt.

7) What about savings and investments? 📈

It's essential to have a plan for both short-term and long-term savings. Diversifying your investments, including stocks, mutual funds, and real estate assets, can be beneficial. However, do your research and consult with a financial advisor before making any significant investment decisions.

8) What will we do if part of our cohabitation plan fails? 😞 

No one wants to think about the possibility of a breakup, but it's important to have a plan in case things don't work out. Here are some questions to consider:

• What will happen to our joint accounts and shared bills?
• Who will be responsible for any debts incurred during cohabitation?
• How will we handle dividing assets if we are not legally married?

Having these discussions and a contingency plan for potential scenarios can save you from added stress and financial strain in the future.

9) Do we need a prenuptial agreement? 💌 

If you're planning on getting married, a prenuptial agreement can be a useful tool for protecting both parties in the event of divorce. It's essential to have open and honest discussions about this topic and consult with a lawyer if necessary.

Plan for your financial future together

Moving in together is an exciting step in a relationship, symbolizing a new level of commitment and partnership. At Doing Well, we recognize its significance and the financial considerations it entails. We're dedicated to helping you manage these smoothly, ensuring your joint financial well-being.

Here's how we can help:

• Develop a shared financial strategy that respects both partners' goals and aspirations, ensuring a harmonious merge of lives and finances.
• Offer guidance on how to split household expenses fairly, taking into account each partner's financial capacity and personal values.
• Provide tools and resources to enhance your understanding of joint financial management, from sharing bills to saving for future goals together.
• Advise on the best practices for managing joint accounts or investments, ensuring transparency and mutual agreement in all financial decisions.
• Support you in creating a contingency plan for unforeseen circumstances, safeguarding your joint financial future.

Moving in together brings both joy and challenges, particularly when it comes to finances. Doing Well is here to empower you and your partner to build a solid financial foundation for your life together. You can book a free call here.