The Secrets to Growing Wealth as a Couple (And Keeping the Relationship Happy)

We’ve all heard and watched stories about how money causes rift in relationships, as seen in films like Tanging Yaman (2000) and the Hollywood movie Revolutionary Road (2008). In fact, studies reveal that 20-40% of couples globally face breakups due to financial issues. So, how can couples discuss money responsibly and build wealth together to avoid conflict? Let’s explore the answer in this article. 

The first step in growing wealth as a couple is defining shared financial goals with clear, achievable timelines. Open communication is key—discuss short-term and long-term goals, like having how many kids do you plan to have, paying for their education, or starting a business. As a couple, it is important to sit down together and align your financial aspirations.

To manage money together, consider creating a joint budget by tracking income and expenses. It's important to be honest regarding all your expenses, as this is usually when couples start distrusting each other, which then leads to conflict. List monthly earnings and expenses like rent, groceries, bills, and transportation, while also including savings and investments. Follow the 50-30-20 rule for budgeting: 

• 50% for needs (rent, bills, insurance) 
• 30% for wants (shopping, vacations, dining out) 
• 20% for savings and debt (savings, retirement, loans)

Life can be unpredictable, and illnesses or accidents can happen without any warning. Building an emergency fund together is crucial in preparing for unexpected events. The goal is to save at least three to six months’ worth of living expenses in a separate, easily accessible account. This fund will provide an extra peace of mind and prevent financial stress during emergencies, such as medical bills or sudden job loss.

A common mistake couples make is letting one partner handle all financial responsibilities. Both should share the task of managing expenses, bills, debts, and investments to avoid disparity. Regularly discuss your finances to ensure you're both aligned.

As a couple, assess your debt and prioritize paying off high-interest debts like credit cards and loans. Addressing debt early is key to building wealth and dodging potential arguments due to missed due dates. Consider using financial services like Home Credit when shopping, which offers flexible, zero-interest installment plans. Plus, paying off your Home Credit loan is easy with a wide range of payment options, including banks like BPI, BDO, RCBC, and many more, as well as e-wallets like Maya, ShopeePay, GoTyme, and others. Just make sure to stick to a budget and avoid overspending.

While focusing on the present is important, planning for retirement is equally essential for financial health. As you both age, securing your future ensures you won’t solely rely on your children. Calculate your retirement needs, create a plan, and save regularly through a pension or personal savings. Having an insurance or protection plan can also play a critical role in securing your future. Consider getting Home Protection, a value added service from Home Credit to insure your home structure and valuables against disasters such typhoons and earthquakes, fire, and theft. 

A healthy relationship thrives when there’s open communication, honesty, and trust between two individuals. Especially when it comes to handling money, it is important for two people to discuss their financial plans to avoid conflict and separation down the line. By setting shared goals, creating a budget, managing debt, and investing for the future, Filipino couples can achieve financial success and secure a better future together.