Avoid the Financial Pitfalls of Living Together

You’re moving in together. That’s great. But listen up, because taking the romantic approach might cost you a bunch of money and headaches down the road.

These rules will help keep you on track:

Speak frankly and openly.
Make sure you and your partner have the same outlook on your relationship. Are you hoping to get married? Or are you moving in together to save money on rent? Ask before you assume.

Once this is clear, talk about what is expected of each partner in the living arrangement and any general concerns each of you has.

Write it down and agree.
Put together a written agreement with your signatures at the bottom of the document. The agreement should include what’s expected of each of you, such as paying utilities and rent, general apartment or house rules, and who gets what if you break up. A simple handwritten document will suffice when the assets aren’t too great.

Split expenses down the middle.
When it comes to expenses, divide costs evenly so both of you share the financial risk. Split the security deposit, and pick particular pieces of furniture to individually purchase. This way, if a breakup occurs, each of you can take what is yours.

Say no to joint finances.
Your best bet is to keep your finances separate to forgo gambling with your credit score.

The problem is uncertainty: Where will each of you be a year from now? If you are uncertain, there is little point in creating interdependence.

These rules might not be romantic to talk about, but they will help you avoid financial fiascos down the road.

For help developing a spending plan that both you and your significant other can live with, contact SIU Credit Union today. Stop by or call (800) 449-7301.