Living together is the next big step that most modern Filipino couples take to solidify their relationships. During this time, couples need to start thinking seriously about building a life together and establishing shared goals and responsibilities. The truth is, cohabitation comes with its own set of challenges—particularly when it comes to setting a compromise between you and your partner’s differing lifestyles.

One of the most common tasks that cohabiting couples struggle with is managing finances. For one, spendthrift people may find it hard to comply with their more frugal partner’s tendencies to put off instant gratification. On the other hand, both parties may not be used to financial responsibility, which may spell disaster in the long run. Still, you can prevent wrinkles in your relationship by bearing in mind some good money management practices. To help you out, here are some tips on how you can best prepare financially when it’s time to make the big move.

Size Up Each Other’s Spending Style

While you may have already gotten a sense of your partner’s spending habits early in the relationship, it’s still important to have a clear idea of their “money personality” if you’re going to be living with them. Do they tend to spend compulsively or do they worry too much about losing their money that they often don’t spend at all? Knowing each other’s money habits will help you both determine your expectations and work through flaws as a couple to establish a common ground for good financial management. Again, living together takes a lot of compromises—especially when it comes to money.

Be Transparent About Income

Transparency and honesty are two of the pillars that make a strong relationship. Before moving in with your partner, it would be ideal if you both have an overview of each other’s income as this will help determine individual financial capacities.

Additionally, you may want to compute your total income with your partner to have an idea of your combined capacity to shoulder living expenses. Doing so will help you determine your joint purchasing power and whether you need external resources such as cash loans to cover emergencies or leisure activities.

Set Long- and Short-Term Financial Goals Together

You may feel a bit tempted to overspend knowing that you’ll be living in a household with a combined income. To prevent going overboard, it may help if you set financial goals together with your partner—both for long-term and short-term needs. For example, you may want to save a bit of money as a couple ahead of the anniversary trip you’ve been planning. Or, you may want to cut a few discretionary expenses like gym memberships and streaming subscriptions to pay off debts or lighten your everyday financial load. Whatever your goals may be, it’s always a good idea to talk to your partner about them.

Consider Income and Other Financial Responsibilities When Splitting Expenses

While it’s good to know your combined funds as a couple, it would still be helpful to divide expenses fairly between the both of you. Talk to your partner about splitting recurring expenses such as utility bills, internet services, rent, and gas (if you have a shared car). For one, you can settle on an agreement with your partner to alternately shoulder groceries and household needs. How you go about your budget planning ultimately depends on you, as long as both of you can keep expenses aligned with your incomes. 

That said, it would help to know your partner’s financial responsibilities outside your household to accurately determine each other’s contributions. For example, they may be providing financial help to their families such as tuition support for their siblings. Knowing each other’s financial backgrounds will help both of you create a fair and justifiable budget plan tailored to your needs, responsibilities, and wants. Moreover, doing so will help you identify the need to cut back on certain expenses or downsize, if possible.

Set Up an Emergency Fund

Even if you both have different bank accounts, it’s still best to have a joint emergency fund for unexpected situations. Your emergency fund must ideally cover your living expenses for three to six months. That may sound a bit hefty, but it’s not impossible if you make it a habit to save little by little. Consider opening a joint account where you and your partner can regularly put in a certain amount—say, a few bucks off your salaries every payday cutoff. If you want to make your money grow, consider opening a savings account with a bank that offers high interest rates.

Maintain Separate Bank Accounts

Along with your joint emergency account, you should make it a point to still maintain individual bank accounts for each other’s personal expenses. Basically, you need to retain control of your own money and not rely constantly on your partner. Having separate accounts will also ensure financial security for both of you if, God forbid, the relationship doesn’t work out.

Don’t Be Afraid to Bring Up the Future

The moment you move in with your significant other, you are already setting up the stage for questions about your future. As such, you need to talk to your partner about issues such as their plans to have kids eventually. Having children is expensive, especially when you consider factors such as schooling and health expenses. Responsible couples know when to hold back on starting a family when they still need to work on their funds.

Moreover, it’s also important to bring up job security when discussing your future together. Some couples may find it a touchy topic, but both parties need to know the stability of each other’s sources of income to know what to prepare for. It may help to do a periodic review of each other’s finances to factor in income changes (i.e., salary increase) in your budget planning.

In Relationships and Financial Matters, Teamwork Is the Key

Most young Filipinos believe that living under one roof with a partner is a cost-effective move to ease the anxieties brought by economic uncertainty. Still, one shouldn’t discount the fact that navigating finances as a couple takes a lot of work. Ultimately, the rules of managing money with your partner are not entirely set in stone. As long as you have a good sense of teamwork with your significant other, you can devise good strategies for keeping your new household afloat. Overall, the most important thing is that you are there for each other to steer the ship even with high financial tides.