Love and money: Navigating finance and romance – part one

August 11th 2016 | Categories: Money, Family & Relationships |

Couple on the street with a bike

All is fair in love and war – right? Well, maybe in a perfect world. The reality is that romance and relationships can get sticky fast and sometimes your finances are wrapped up in the complicated equation.

Just ask Paulette Perhach, in an interview with Mashable, the writer detailed how her lack of financial security made her breakup particularly difficult.

“I had a little over $100 to my name, I owed my mom $1200, I owed my boyfriend $2000,” she tells Mashable. “It’s a terrible feeling to have to rely on someone else.”

Today, Perhach has regained her financial freedom and has walked away with some important lessons about the value of protecting her individual funds. In fact, she channelled her experience into an essay titled “A Story of a F*** Off Fund” advising other women to secure a secret stack of cash in case of a relationship emergency (or any other emergency for that matter).

Don't let an unexpected breakup jeopardize your finances - secure your own savings.Don’t let an unexpected breakup jeopardise your finances – secure your own savings.

Relying on a partner completely for your financial stability is a scenario that can leave you in a situation like Perhach faced after her break up. While relationships can be a source of love, joy and respect, no one ever knows how a breakup will go and as such, you should be guarded to protect your standard of living no matter what.

In the vein of this ‘prepare-for-the-worst’ mentality, there are some critical steps to remember if you do ever find yourself left high-and-dry financially after a romantic disaster.

Cut the financial ties: The first step to safeguarding yourself after a messy breakup is to cut any outstanding financial ties. Change the passwords on your accounts, remove your former partner’s name from all leases or insurance policies. Shut down any opportunities for them to damage your financial health.

Conduct an honest assessment: Once you’ve protected yourself, it’s time to face the truth about your financial situation. See what money you have to your name, what debts are outstanding and how you can realistically remedy the two.

Ensure it never happens again: Once you have managed to get yourself in a better place, take the necessary steps to ensure it never happens again. Seek out guidance from a financial adviser, leverage financial planning tools and start your investment planning process.

“Seek out guidance from a financial adviser.”

Don’t worry, the world of love and money isn’t all doom and gloom. In part two we’ll delve into how to ensure financial freedom in a loving relationship. Stay tuned! In the meantime, check out how we can help you on your path to true monetary independence and get in touch with us today.

[ninja_form id=41]

What you need to know

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, Invest Blue Pty Ltd and its subsidiaries operating as Invest Blue, 1300 346 837 and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Please contact us if you want more information.