When you think of finding the ideal partner to spend your life with, having chemistry and romance are essential. However, once the initial attraction is identified, each couple must be aligned when it comes to their financial goals. A recent infographic provided by Experian credit bureau shows that factors such as overall finances including credit scores, debt, savings and investments play a vital role in determining long-term compatibility.
While most individuals have a budget they commit to on a monthly basis, working directly with a wealth management company helps to identify areas of opportunity. This includes improving poor credit scores, maintaining good credit, and identifying a long-term financial plan that allows you to save for a home, retirement, and college savings for your children.
Below are a few interesting statistics as to how your financial standing can affect your romantic relationships.
Experian asked both married and unmarried individuals about which compatibility factors were of greatest importance. While personal compatibility was the clear front runner—the second most important compatibility factor for both married and unmarried individuals was financial responsibility.
Personal Compatibility 98% 98%
Financial Responsibility 95% 93%
Physical Attractiveness 86% 90%
Career Ambition 77% 81%
Once Married, Your Combined Credit Matters
Once you are married, anytime you apply for a loan your spouse’s income, credit scores, financial habits, savings and investments will play a vital in securing the loan. This includes approval, interest rates, and even insurance rates. Whether your credit and financial standing is excellent, or has room for improvement—reaching out to a wealth management company identify areas of opportunity, and increase the speed in which you get back on track with your money and savings.
Splurges Must Be Discussed
Many married couples have shared bank accounts, and a budget that they allocate for their monthly entertainment and social life. When out of budget spending occurs 96% of married couples will discuss a splurge purchase prior to investing their hard earned money. Whether the splurge is beneficial for the entire family does not weight in—but ensuring that both agree on the purchase is important to most couples.
Finances Must Be Managed
Creating a budget is not always one in the same as responsibly managing your savings and investments. For example, you may stay within your $200 a month budget for dining out for lunch—but your money may be best served elsewhere. When working with a wealth management company, you will learn how paying down your credit cards and debt by even $50 more per month can drastically improve your credit score—even if it is already good.
Mistakes Can Be Reversed
Finances should not be the deciding factor that keeps you from the relationship of your dreams. If you have made mistakes with your savings and investments in the past—your mistakes can be reversed. It is never too late to reach out to a wealth management company to begin improving your credit score, increasing your savings, and building a long-term investment portfolio. While it will take time for credit to improve, it will occur at a much faster pace if you work with professional financial advisors.
When it comes to finances and relationships, love comes first—but financial security is not far behind. Keep your finances in line and contact Lighthouse Financial Planning to help manage your savings and investments.