When Josh called from Orlando, Florida Ramsey show Requesting advice on mobility in financial affairs and dividing bills with his girlfriend, Dave Ramsey’s advice was clear: Do not move together before marriage.
Josh earns more money than his girlfriend, and when discussing the transfer with her, he suggested that they divide the 50/50 bills because they are not married. This would leave him with more money to pay his debts.
However, his girlfriend feels that additional money should be placed in the savings account for them, because Josh will only save money to pay his debts because of her contribution.
“I am somewhat understanding where I came from because it helps me save money and that money pays debts,” Josh Show. “But at the same time, I feel that this is not necessarily, like a healthy mentality.”
Here is what Ramzi and the participating host of Dr. John Deloni said.
Ramsey advice is very clear. In fact, it indicates data that indicates that coexistence before marriage negatively affects your money and relationship.
“So, you want a room colleague sleeping with him, but you don’t like their answers about money,” Ramsey said. “The transition actually returns you to several fronts. Data are horrific to live together. Relationship data and financial data are absorbed.”
Deloni noted that living together would actually put his girlfriend in an uncomfortable position. “I was completely exposed if I moved with you, based on your debts and then separated from it,” said Delonie.
It should be noted that Ramsey is a Christian Christian, so his position on living together before marriage is partially rooted in his religious beliefs. But there is some research to support it – at least partially.
A Ticket From Sonya Brett-Lutter-Associate Professor in Personal Financial Planning at Kansas State University-Casandra Dorius, Assistant Professor in Human Development and Family Studies at Iowa State University, he found that people who coexist before marriage have less net value and accumulate less financial assets than husbands.
“Coexistence relations tend to be in the short term and unstable, and continue to start again,” Durius participated with United States news. “This is difficult to generate wealth.”
However, the data is not quite clear. The same study indicates previous research that shows that people with high consumer debts are more likely to coexist in the first place. This raises the question of “chicken and eggs” – does live together weaker financial results, or are people with financial challenges more vulnerable to moving together before marriage?
Cultural trends also play a role. Coexistence has become more common in recent years, with nearly two -thirds of the two millennial couples live at least once before marriage. Long-term financial results for existing couples can vary from the study-Lutpute and Dorius study, which was conducted in 2017 and may reflect trends from years ago.
However, without careful planning, couples who participate in the house before marriage can face real risks if the relationship ends – especially if one of the partners contributes to the growth of debt or assets more than the other.
Read more: Do you have rental real estate in the United States? These six breaches can help you increase your income and reduce your tax burden
If you plan to live with a partner before marriage, it is important for both partners to protect themselves financially. Here are some of the main steps that you can take to achieve this:
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Make an explicit conversation before movingDiscussing income, religion, spending habits and savings goals. Be open and honest
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Determine how to divide the expensesWill it be 50/50 or divide based on the income percentage? If one of the partners earns much more than the other, it is often logical to divide based on the income percentage – so if someone earns 60 % of the total family income, it covers 60 % of the common expenses
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Keep some separate financial affairs: If you do not have legal protection for marriage, do not completely collect your income. Think about creating a joint account where you deposit money for joint expenditures, but keep your personal account – and your personal savings
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Protecting large purchases: If one person pushes more towards one of the common assets – such as furniture, devices, or even a car – keep records of paying what he paid. Consider the coexistence agreement to determine the ownership of common property
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Reconsidering the plan regularlyIncome, goals and expenses change over time. Check every few months to ensure that the current agreement is fair to both partners
With more partners who live together – either before marriage or without a plan to marry ever – it is important for couples to have explicit conversations about money. Mixing financial affairs can be risky before marriage, but developing a plan can help you share a house without developing your financial future.
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This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.
