Unlock the power of financial intimacy for a sound relationship

Planning together for the future is an essential aspect of financial intimacy. This includes retirement planning, inheritance planning, and estate planning. When partners plan together, they can ensure they are both on the same page and working towards common goals. Couples can ensure they are on the same page by regularly discussing and planning for their financial futures

In keeping with the spirit of St. Valentine's Day, the young and older couples must take time to discuss Financial Intimacy (FI). This is the level of comfort, trust, and transparency between partners on money matters.

According to Richa Hora, a globally acknowledged relationship coach and founder of Metaanoi, "Open and honest conversations leads to a sound foundation for a long-term healthy relationship, including financial honesty."

Because it has an impact on someone's happiness, stability and general well-being, financial intimacy is important. Financial intimacy between partners increases the likelihood that they will cooperate and take wise decisions towards shared objectives. According to a recent ETWealth survey, only 30 per cent of Indians have confidence in their partners' financial judgement. According to 26 per cent of the respondents, financial disputes arose as a result of one of them hiding financial problems.

The best ways to consolidate your finances in a relationship will revolve around communication and trust.

Building FI blocks: The foundation of financial intimacy is communication and trust. Almost 55 per cents of the respondents to a recent online survey stated that they have frequent fights over money with their life partners. Therefore, partners must be open and honest about their finances, which create a strong bond between them. This involves discussing their financial goals, spending habits, debts, and other financial issues that may impact the relationship.

Money management and shared goals: A path to the intimacy is when the couples set and achieve shared financial goals. This involves making a budget, tracking expenses and saving for the rainy day. When both partners are committed to managing their money effectively, it can strengthen the relationship and create a solid foundation for the future.

Joint vs individual finances: It is a choice that needs to be taken mutually based on their circumstances. Both approaches have pros and cons and making an informed decision that works best for the relationship is essential. Suppose a couple wants to take a personal loan; it's necessary to decide if it will be a joint loan or if each partner will take a separate loan. It's crucial to weigh the benefits and drawbacks of each approach. The survey report says that about 43 per cent of couples, who are married, in a civil partnership or living together have joint assets.

Overcoming FI challenges: Like in any aspect of a relationship, financial intimacy comes with its own set of challenges. Couples may need help with debt management, different spending habit, and money. To overcome them, it is essential to be transparent, and honest about all money matters. Financial infidelity is a threat to relationships. The report points out that more than 75 per cent of the couples who reported financial infidelity stated it had harmed their relationships while 10 per cent said that this had led to divorce.

Role of coaching: Financial coaching can be crucial in resolving financial disagreements and developing financial intimacy. Couples can get the support and guidance they need to overcome economic challenges and improve their financial intimacy by working with a coach.

Hora says, "If money is often the source of arguments in the relationship, it's time to come together and find a way to openly discuss the pain points on finances even if your partner is not happy about it. Avoiding concerns and sources of friction will not let either of them in peace but complicate things further."

Additionally, according to a survey conducted by the Financial Planning Association, approximately 71 per cent of couples who received financial planning advice reported an improved relationship. Moreover, the survey found that couples, who received financial planning advice, were more likely to work together towards their financial goals, as well as communicate openly about their finances and feel more secure about their future.

Into the Future: Planning together for the future is an essential aspect of financial intimacy. This includes retirement planning, inheritance planning, and estate planning. When partners plan together, they can ensure they are both on the same page and working towards common goals. Couples can ensure they are on the same page by regularly discussing and planning for their financial futures. They feel confident about their financial futures and experience a more robust and secure relationship.

Financial intimacy is a critical element in relationships and it's worth the effort to work on it. By communicating openly, setting shared financial goals, and making informed decisions about their finances, couples can strengthen their bond and build a secure future together.

Actionable steps couples can take to improve their financial intimacy include: Setting joint financial goals; creating a budget; opening joint accounts; being transparent; seeking professional advice; avoiding money secrets and regularly reviewing progress.

With commitment and effort, financial intimacy can lead to a more fulfilling and secure relationship.

(The writer is founder & CEO of IndiaLends)