Love is in the air. While you are being surround by the ideas of grand gestures of love and commitment this Valentine’s Day, you and your loved one might be thinking of making a big move – moving in together! Before jumping into this with both feet, you two need to sit down together to have a serious discussion about expectations and what this will mean for each of you. Going into this with a clear mind will not only allow you to enjoy the buying experience as well as to help alleviate disappointment later on.
Be open and honest – After making the decision to live together, the next most important discussion is regarding your finances. Speaking to your loved one to better understand their spending habits, income, debts and savings. Discuss whether it is best separately split financial costs or to open a joint account to cover your monthly housing costs. However, whatever decision you make, it should be equally agreed on, including how the account will be used and how much will be deposited into them.
Budgeting bliss – When two people come together to live under one roof it is imperative to understand and agree on the lifestyle you would like to have. The best way to achieve and maintain that lifestyle is by creating a budget. Your budget will outline your essential and non-essential expenses, allowing you to not only pay your bills, but to be able to save for the future. Whether your goal is to save for a vacation, house or children’s education fund, it will help motivate you to not only create your budget, but stick to it as well.
For more information on how to draw up a budget visit the Financial Consumer Agency of Canada (FCAC) website, fcac.gc.ca.
Source: Financial Consumer Agency of Canada (FCAC)