7 Money Moves Couples Can Make to Survive Seasons of Crisis
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The current pandemic has wreaked havoc in more ways than one. While these last 5 to 6 months have given couples more quality time to spend together, they have also been tough mentally, spiritually, and financially on these very same couples. That’s why it’s important that you learn these 7 money moves couples can make to survive seasons of crisis.
On top of this, the challenges of being confined together in the same place, while also trying to work and homeschool kids for several months, have increased the amount of both mental and financial stress and anxiety among couples.
Since several studies, such as one done by Money and Mental Health have shown that mental and financial health go hand in hand. So, today we are going to lay out 7 money moves couples can make to survive seasons of crisis, while also keeping their mental health in check.
7 Money Moves Couples Can Make to Survive Seasons of Crisis
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1. Talk About Your Financial Goals
If you and your spouse or partner have never set aside the time to discuss your financial goals, then now is the best time to do so. Sit together and create a plan for where you’d like to be in the next year, 5 years. 10 years. Then decide what adjustments need to be made and implement. Remember, that this exercise should be done several times each year even if you are not in a financial crisis.
2. Change Your Current Spending Plan
Review your spending plan and make the necessary changes so that you will be able to have the bare necessities to live. You will not be able to live the same way you did once you have experienced a job loss or a pay cut. You will have to reduce your household expenses.
Share your views regarding how to allot money in different categories. Discuss and set an amount for your household budget. Chalk out strategies to live on a shoe-string budget for the next 5-6 months. Respect each other’s differences of opinion and accept each other’s views with an open mind.
3. Live Frugally on One Income
Instead of only being concerned about your income, you should think about how much money both of you are pooling together. If your spouse has lost her job, support her with your monthly paycheck without holding any grudges in your heart. Learn to live on one income. During times of crisis, learning how to live an extremely frugal lifestyle to survive on one income is going to be crucial.
Now, if your partner is still working, then consider it a blessing. In this case, both of you should try to live on one income and use the other paycheck for meeting your financial goals i.e. paying off debt, building your emergency fund, and increasing your retirement, etc.
4. Create Multiple Streams of Income
Many couples are saddled with mortgages, credit card bills, and student loan debt. So, having a few extra hundred dollars could help them to pay off their debts. If you belong to this group, then one of the smart money moves to make in your 20s is to create multiple streams of income.
You have the option to work as a freelancer or do choose from dozens of side hustles online. If both of you are at home, then both of you can do freelance work after the 9 to 5 is complete. This way, if any of you were to lose a job, then you’d have something to fall back on.
5. Build an Emergency Fund
No one ever really knows when a crisis will hit, neither do we know how long it will stay. That’s why it’s important to build some type of emergency fund. Either or both of you could lose your job in the next month, but you will continue to incur expenses. If you are not in a financial crisis at this time, then start saving money now. You don’t want to add to the stress you are sure to endure by not preparing in advance.
You can start by taking some time to sit together and decide the amount both of you want to save every month in order to build your emergency fund. Then, set aside a small portion from both of your paychecks and deposit into your emergency fund. Save money every month so that both of you can cover living expenses for at least six months.
6. Automate Your Savings
This step is so simple, yet it is one of the most overlooked ways to save money. You can set up automatic transfers in your joint checking account so that a particular amount is transferred to a high-yield savings account and/or investment account. This is a good way to help both of you stay on top of your financial priorities. This will also eliminate the need for reminders regarding your financial obligations each month.
7. Plan to Tackle Debts
Create a plan to handle your debts as a couple. Decide how much money both of you are willing to put towards your debts. Work together to save money, increase your income, and pay off your debts fast.
Conclusion
What the world is currently experiencing is definitely an extraordinary situation. Couples should be extremely careful and make the aforementioned money moves to save their financial and marital lives. Once couples feel that they are financially secure, mental health should also improve. One wrong money move can derail their financial future and affect their relationships too.
Linda Richardson is a New Jersey-based financial content writer and enduring learner with an ongoing interest to learn new things. She uses that curiosity, connected with her knowledge as a financial writer, to write about subjects valuable to small businesses. You can find her on Twitter at @LindaRossie9 or email her at linda.richardson9119@gmail.com.
