If Your Partner Offers To Cover All The Finances, Don’t Quit Your Income
Three things you should never relinquish in your partnership
It might sound like a sweet deal to have someone offer to cover all of your living expenses; okay, it is a sweet deal.
But pause before you jump for joy at not having to work a regular job or concern yourself about bringing in income.
One of the most powerful things you can do financially — whether you’re partnered up or simply dating — is maintain your financial independence at all costs.
Don’t Plan For Failure. Be Prepared For SHIFTS.
Around 30–50% of relationships are successful and don’t end in divorce, which is excellent news. There is hope for everyone — especially if you consciously partner up.
Sometimes relationships don’t end; instead, a partner might lose their job, mobility, or life happens, and there is income loss.
Shifts— especially financial ones—happen in relationships.
Maintaining financial independence can alleviate stress, anxiety, and concern over the price of inconvenience.
Three Things You Should Never Give Up
Shared finances are healthy, but keep some of your shit in a partnership.
It’s not malicious to maintain separate financial situations in addition to joint ones; if anything, it makes the financial aspect of your relationship more bulletproof.
Don’t plan for failure; be sensible:
Maintain at least two income streams.
Maintain a bank account in your name.
Maintain a separate retirement and investment account.
A few other things to consider not doing (unless it’s for SOUND business purposes):
Don’t cosign a car loan with a partner.
Don’t cosign a credit card with a partner.
Don’t cosign on a house with a partner if you’re unsure about the relationship or are not financially on the same page.
Questions Worth Asking Yourself
Every move you make should be capable of being made alone. I repeat—every move—unless it’s for business purposes and requires joint capital (e.g., investments or joint real estate portfolios).
But, still have your sh*t, and be able to do sh*t on your own.
Do you have savings?
Do you have investments?
Do you have income for a rainy day?
Do you need your partner to buy or cosign for a car purchase?
Do you need your partner’s income to make a home purchase?
Do you require your partner’s income to apply for a credit card?
What will you do financially if you and your partner don’t work out?
Where do you stand financially WITHOUT your partner?
Another significant and essential question you should ask yourself is whether you can comfortably live independently.
If you can’t live independently, make some moves quickly to even out the financial dynamic.
Avoid putting yourself in a financially helpless or dependent position.
If you’re a stay-at-home parent, that doesn’t disqualify you from needing your income; still, get and have your bag; it adds additional layers of peace.
Plus, that extra income can be invested to increase your and your partners’ net worth.
Can YOU Afford Your Lifestyle?
A lot of people can’t afford their lifestyles without their partner.
If they lost their partner, their lifestyle would completely shift and be downgraded; this is not necessarily bad if you don’t mind the downgrade, but it means you’re financially reliant on your partner for your lifestyle.
Too many people are linked up in financially codependent relationships. They can’t walk away easily or quickly because they need the other person’s bag.
If you and your partner don’t work out for whatever reason, be able to walk away quickly without having to consider the financial costs.
When you have your financial sh*t together, walking away from bad or unhealthy situations becomes easier.
Some of the best and most liberating advice I’ve ever given to myself:
Never rely on anyone else’s bag. Be able to do the sh*t you want to do on your own. But it works both ways: Don’t allow others to become unhealthily dependent on your bag.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.