FINANCES in a RELATIONSHIP ( 3 simple steps )
Do you ever fight with your partner about the money?
Would you like to stop it?
We used to have the same problem, but then we solved it, and for the last ten years, we didn't have a single fight about money. We even prosper in that area together.
Is that good or what?
Here are three steps that we took to stop fighting about money and start to prosper together.
RECORDING our earnings and spendings
This step seems so obvious.
But not many couples do it.
I don't know why?
We record all our earnings and spendings. Not to compare ourselves to each other about who brings more money to the table, but to acknowledge it and get aware of it. The feeling who earns or spends more money can be very misleading. And it often leads to accusations and fights between couples.
But when you have everything written down, you have proof of your earnings and spendings.
It works as a mirror into your face.
You can not deny your spendings anymore.
For recording our income and outcome, we use an app called MoneyCotrol. We use it for many years, and it works well for us. I will leave the link to the app down in the description.
So, recording your earnings and spendings helps you to become aware of how much money you earn per month and how much money you need for your monthly expenses.
You become aware of where your money flows. And more importantly, where are you losing it.
It is a wake-up call.
And that leads us to the second step that helped us to stop fighting over money and start to prosper together.
Find your BALANCE between your earnings and spendings.
To create balance in our finances, we first had to admit to ourselves, how big we are financially and then decided not to spend more then we earn.
First, we calculated how much money do we need per month to survive.
That means paying our bills for electricity, mobile phones, internet subscription, water, insurance, and our food.
When we knew the number, we realize that we don't need a lot of money to survive. A lot less, then we thought at first. We could lower our expenses pretty low. And we did.
We got rid of our car. Since we don't need it, that often.
We made ourselves a tiny house, debt-free.
And because it is a tiny house, it doesn't cost a lot to maintain it.
We have a garden which provides us, fresh food for half of the year.
We started buying food more concisely.
Raw food like vegetables, fruits, and cereals is much cheaper than processed food like made ready to eat lasagna, for example.
We cook our meals at home. We drink coffee at home.
We cut all the small and unnecessary expenses. Like TV or newspaper subscription.
After we cut our spending to our minimum, our finances become balanced, and extra money started to accumulate.
And that leads us to the third step that helped us to not fight over money but to prosper together.
At least 10% of all income goes to investments to grow our passive income.
And here, all the fun begins.
We always, and I mean always, give ten percent of our income, for investments to grow our passive income first, and then we pay our bills and spend money on other things.
It takes some discipline, but it is worth it.
We are surprised how quickly that pile of money grows if you are consistent, even if you don't have a lot of money, to begin with
Passive income is money that comes from your investments, such as stocks or real estate and you don't need to work extra for it.
There is a lot of options. Some are riskier, and some are safer.
It is important that you invest in something that you are familiar with it. You have to educate yourself about it before you invest your money.
We invest our money in cryptocurrencies at the moment.
The psychological impact of step three that has on us is that it gives us a sense of security.
We no longer worry about money because we always have something saved.
Our focus changed from lack of money to prosperity.
And that leads to more and more prosperity.
Ok, my lovelies, that were the three steps that helped us to not fight over money but to prosper together.