Alright, your financial game plan kicks off with a simple move, knowing your income. You’ve got to be crystal clear about the money that’s rolling in because that’s your budget to play with. 

Now, when you’re in a committed relationship, it’s all about teamwork. You and your partner probably have a bunch of shared financial goals – from jet-setting to buying a cozy nest, popping out some mini-you’s, and retiring in style. And guess what? It’s a slam dunk when you tackle those goals together! Teamwork makes the dream work, people!

Let’s tackle a not-so-silly question that’s actually a big deal. You see, a whopping 43% of couples out there don’t even know their partner’s income. And get this, out of that bunch, 10% of ’em guessed wrong by a margin of $25,000 or more! 

Now, our parents and their generation have this unwritten rule that money talk is off-limits. But let me tell you, they’ve got it all wrong on this one. You and your partner have got to be open and honest about your finances; otherwise, your relationship might be on rockier ground than the Edmonton Oilers playoff prospects.

Why You Both Need to Spill the Beans on Income

Time to be as transparent as Translucent on The Boys. Your financial game plan starts with knowing the cash flow. You got to understand how much money is coming in so you can figure out how much you can spend without diving headfirst into debt (ask us for a reverse budget sheet) Need to know the salary cap before constructing the roster.

When you’re in a committed relationship, it’s a team effort, folks. You and your partner probably have a lot of the same financial goals – the whole shebang, from traveling to buying a house, having kids, and retiring. And guess what? It’s way easier to score those goals when the left wing and center are on the page.

So, here’s a little math for you – your income + your partner’s income = your total household income.

Your financial game plan suddenly feels more doable, right?

Oh, and just a little heads up – couples argue about money more than almost anything else even more than they argue about who’s hogging the blanket. So, the more open you are about your money, the smoother your relationship ride.

When to Have the Income Talk

Now, I’m not saying you need to drop the income bomb on your first or second date. But when your relationship starts to feel like it’s going the distance, it’s time for that income conversation.

Here’s the deal – before you move in together, pop the question, put a ring on it, have a mini-you, get a fur baby, or buy a house – that’s when you sit down and talk money. And let me be crystal clear – this isn’t a chat for rush hour on the highway or a rowdy bar night. No, no, this is a conversation for a cozy, relaxed setting, preferably with a bottle of Naramata wine. Just make sure you’re not too tipsy to remember it the next day!

What to Do If One’s Making More/Less Than the Other

Here’s the golden rule, folks – it doesn’t matter who’s raking in more cash, because you’re a team now! Get that “my money” mindset out of here. You’re in this together, so start seeing things as “our money” instead of “your money.” In another study, 64% of couples say that they are financially incompatible. Plus, if your partner leaves you because of how much you make or don’t make… well we’ll let you decide on how that should be perceived. 

Now, I get it, everyone wants a little pile for themselves, like when you want to surprise your partner with the latest Scotty Cameron putter or a Cartier bracelet. So, here’s the play – create what we call “side piles.” Agree on a monthly amount that both of you contribute to these individual accounts, and only use that money for stuff that’s strictly personal or for spoiling your partner.

But remember, the big chunk of your income should still be heading into those joint accounts. After all, there’s no “I” in “wealthy”!

ARC Wealth offers tailored financial solutions designed to empower young professionals with high incomes in building and overseeing their wealth.

Whether you’re dreaming of a getaway to Spain or eyeing a brand-new Tesla, we’re here to guide you in realizing both your immediate and future financial goals