Financial goal-setting for couples

Learn how to tackle your finances as a team and get to where you both want to be, faster.

4 minute read

BNS0329 Setting financial goals as a couple

There can be a lot to get in order when combining finances, but there are a few things you can do at the start to be prepared. Learning how to budget and save money, while also setting future goals and financial plans as a couple, will help set you up now and build a strong foundation in the long run.

Starting out together

When managing money together, the key is establishing a healthy balance both of you can agree on. Firstly, it’s a good idea to have an in-depth talk about your broader future plans and make sure you’re both on the same page. For example, do you want to buy a house? Start a family? Do you want to do these things soon, or down the track? Would you rather prioritise travelling? Or is there something else you are saving for?

Your next move is determining your household needs – things like rent or mortgage payments, utilities, groceries, and car payments. Figuring out how much to spend on these comes down to needs versus wants. For example, you can often save money by cutting back on groceries, buying a cheaper car or renting a smaller place. Most importantly, you should always be open with one another about any individual debt so that it can be addressed as part of your planning – leaving it out will put you both in a difficult position down the track.

Goal setting

Another thing couples planning for their future could do together is develop a joint financial plan. This will help you set clear goals and determine how soon you can reach them. Setting short-term goals (e.g. monthly) will allow you to spend and save within your budget, helping your progress towards the long-term goals you have set. To make sure both you and your partner are staying on track with spending and saving, it’s a good idea to set up a regular budget chat. This way you can discuss how your budget looks for the month, any upcoming bills and how you’re tracking to reaching your short-term goals, or if anything needs adjusting. Regular open communication will also build trust and help you avoid issues which may cause problems in the future.

Common goals

It can be hard to know where to start when setting goals, as everyone has different priorities. Here are three common goals couples set:

1. Pay off debt

Debt can weigh heavily on a couple. Paying it off as soon as possible will help free up cash for other goals or lower your monthly expenses.

2. Live on less than you earn

Avoiding debt is just as important as paying it off, so making sure you have a budget between yourselves will help you to live within your means.

3. Establish an emergency/buffer fund

We can’t control every aspect of our lives, so making sure you have a little extra saved for the unexpected – like getting a flat tyre, or a trip to the dentist – is a great goal to set. Start off by building an emergency fund – $1,000 is a good starting amount to aim for, then keep building from there. Consider setting a long-term goal of having 3-6 months worth of expenses saved in an emergency fund.

Common pitfalls

Making slip-ups is a part of life, it’s how we learn and progress. However, if we know what errors are commonly made, then we can actively try and avoid making them. Here are a few examples:

Walking in blind

Make sure you have financial discussions with your partner earlier rather than later, because being transparent with each other upfront means you’re much less likely to run into unexpected issues down the track.

Being dishonest about finances

Hiding receipts after a big spend might be a simple joke at the time, but this type of behaviour can lead to budgets blowing out, goals not being met, and your partner losing trust in your financial abilities.

Not working as a team

If your partner is not willing to budget, is stacking up debt, or hiding or keeping their finances separate, address this as soon as possible.

Life will always have its ups and downs so being realistic and planning ahead can help to minimise issues. In any aspect of a relationship, communication is key, so if you're unsure about something, it’s a great idea to work through it with your partner. Or, maybe it’s a chance for you both to seek financial advice together. The best part is that even though it may be difficult, you're not doing it alone, and working through it together will ultimately set you up for success.

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