Moving In And Money: Making the decision to move in with your loved one can be an amazing step in your relationship. However, there are some financial considerations you must take into account. So you are best protected if things weren’t to work out. Find these out below:
The reasons for moving in
Yes, you probably think that when you move in with your partner, you’ll be stoke to. Cuddled up on the couch each night, watched Netflix, and fall all the more in love. Quite frankly, this broadcast isn’t about the mushy lovey dovey side of moving in. It’s about your finances which need to be thought carefully about.
From an economic standpoint of view, moving in together can be a great idea. You may able to save on rent, combine your capital to purchase a property. Buy yourself back some time through the sharing of chores. And of course start to pool your money to be invested.
Considerations, before the fact
As host Andrew Baxter mentions, right from the get-go it’s important to nut out a few things – do you have a joint or household bank account? Are you leasing or buying? Whose name is on the property? Do you contribute the same dollar amount? Whose poodle is it? Quite frankly, “if you get this wrong, it can be a real nightmare,” says Baxter – as all of these factors, if it does come to the time where you break up to go your separate ways, “can start to bleed in and make life quite stressful”.
Now, this may seem like quite a negative way to think about moving in when you’re curdled up on the couch with your forever, however having an exit strategy in mind if things did start to get messy is pivotal. You don’t just want to know how to make money – you also want to know how to keep it.
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Fatal flaws and pitfalls
Applying common sense when you first move in with someone should be a no brainer. Before you move in, realistically you’re not even sure how messy they really are, how much they actually snore, or if you can even live together full stop. One thing that Andrew Baxter suggests is renting a property together first before buying.
As in the case you do decide to split up, unraveling a lease agreement is much easier than settling on a house – less hassle and it definitely won’t cost you as much in legal fees. Secondly, another consideration is the defacto legislation – whereby if you’re in a committed, sexual and public relationship – your partner may be entitled to some of your assets after a period of time when you’ve broken up. This is where problems can really start if things do happen to go south, with claims against your assets and expensive legal fees to name a few.
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What to do if you save some extra cash
Other than being in love, the whole notion of getting together and saving money is an appealing one. After saving on rent, groceries, and maybe even utilities – you may find yourself with some spare cash to which the question arises, what do you do with it? Do you go for an extra fancy dinner out each week? Do you put it in the bank? Get a dog? This will of course depend on what your values are surrounding money – however, host Andrew Baxter suggests getting yourself invested in either property or the stock market.
Yes, you’ll sacrifice some short-term holidays to Noosa or Bali, however in the long-term, the income and capital growth potential on your investment can set you up for life. Check out the Andrews team at Australian Investment Education for some advice on how best to steward yourself through these decisions.