If you’re partnering with someone or splitting up, childless couples have a lot to think about in terms of money and relationships. Being without children certainly does not mean that ending or beginning an affair simplefinancially in the sense of. For those who are transitioning to an SINK into the DINK lifestyle and DINK to SINK there’s a lot more will change than just the status of your relationship.
Certain factors are what make the financial planning process of SINKs as well as DINKs distinctive, simply because they’re child-free. But what happens to those who move in the same child-free zone? If you’re part single income with no children (SINK) populace and you’re starting the process of forming a new relationship, or perhaps becoming more engaged with your partner, keep reading for some things to take into consideration financially as the DINK. If you’re moving from an dual income, no kids(DINK) household to the SINK lifestyle Here’s a good start point that you can follow to create your own money-related to-do list.
SHIFTING FROM SINK TO DINK
It’s great that you’re teaming up with someone else. Congrats! What do you need to be thinking about and preparing for regarding your finances when you’re in the context of a relationship? It is worth considering what you’ll do …
Take your finances in the form of couples How will you handle your finances as a single person or as a couple or some combination of both? The way you manage your finances can change as time passes, and you could alter your method in order to meet your requirements when they shift. This will affect whether or not the accounts are shared, how you divide the cost of expenses, how much you set aside to fund joint goals, and much more. This could affect the way you earn the cash you contribute to the relationship. Talking about this now could aid in avoiding end your relationships due financial problems.
Split costs with your plan in place, we’re talking about the mechanics here. There are a variety of options to consider, from paying for meals with a partner and remitting your payment to your partner via cash or applications to transfer your share to split costs according to categories (e.g. I’ll pay utility bills, rent and household expenses while you pay for groceries or going out for eating out). Knowing who’s paying which items and how you’ll get the payment can help you plan the purchase you make before making your purchases and help keep each of you accountable.
I’ve recently heard about Tandem the application that lets you divide expenses together with your spouse. Although it’s only available through the Apple App Store, it’s ideal for couples who typically split their expenses in a certain method. It starts by linking your accounts with financial institutions you use to pay your bills and connecting to your Tandem account to that of your partner.
The app will allow users to monitor and share expenses you’ll share. You can choose and choose an amount of percentage (e.g. 55/45 for example: You make 55 percent of our household income, and I earn 45%, therefore I’ll cover 45percent of our shared expenses, while you contribute the other 55 percent.) Or, you can adjust each purchase with a different percentage, or a an amount in dollars. It is also possible to or make your personal expenses to yourself and do not be able to share them with your spouse. If you split the cost, each partner can see it on their Tandem feed so that you are able to see where you are and the amount you are owed. To “settle” the balance, you can make use of Venmo or Cash App or a different method such as an offline transaction, or make payment right from the Tandem application.
While I’m not an advocate for any specific application. It just happens to be one that a couple of my clients recently suggested to me. I tested it out and loved it! If you have any suggestions to share, please send your idea my way!
Make jointly-made decisions together In the event that expenses affect your two partners, what do you tackle it? In some couples, it’s a the conversation. Some break it down into costs and benefits. Some go straight to figures and allow their financial plan to make the decision their own. Whatever you prefer having a clear guidelines in place will aid you in avoiding the temptation of overextending your budget or committing to an impulse purchase that you’ll regret.
Are you (yes, YOU!) going to SINK to DINK financially? Let’s chat! We’d like to set up a meeting with you and your spouse a time to talk with us and determine if it’s a good idea for us to collaborate.
GOING FROM DINK TO THE SINK LIFESTYLE
Moving from being an DINK to a SINK lifestyle – whether that’s due to an amicable division which benefits both of you, a bitter break-up or something else It can be a challenge especially if you’ve been involved with someone else for a certain amount of time. Perhaps you were one of the DINKWAC or DINKWAD and are now trying to figure out the best way to parent pets. If you’re dealing with finances in a breakup or divorce You might want to think about the ways your finances will …
Address your account’s and titling is it both you and the former spouse identified in joint credit card accounts, joint bank accounts or real estate? If sharing them in a mutually agreeable manner isn’t feasible It’s probably best to get involved with an attorney in this. If you’re married, and you’re DINK into SINK shift is the result of divorce, you could already have an agreement in place. It’s the best moment to get your domestic partner’s contract or prenup in place.
Plan your estate The latter is especially the case if you’re ending your marriage or an engaged partnership. If your trust or will named your ex-partner as a beneficiary, it’s that you should consult your attorney.
Change your beneficiary designations -In addition to your estate plan, it’s a good idea to look over the beneficiary designations on your accounts if do not wish for your assets to pass to your former in the event of your passing. Check your retirement account, bank (401(k) and 403(b) Roth, the traditional IRA) and investments accounts. If you’re going to remove the former partner who will the beneficiary be? If there’s no one to think about, keep in mind that charities and non-profits are able to serve in these capacities.
Manage your money in an SINK -The split with your partner doesn’t require cutting your family’s previous budget by half. Actually it’s the SINK lifestyle is likely to be more expensive than the majority of your DINK cash withdrawals. Think about the cost of housing: If you’re living on your own, you could move to less expensive or smaller area … However, you’ll have to pay the total cost of your mortgage or rent payment, insurance and much more. If you’ve previously shared expenses on a car and you were a former partner may be leaving the relationship. That could mean paying for vehicle’s registration, insurance and maintenance on your ownor being in a situation where it’s up to you to purchase a car to satisfy your transportation needs. Imagine how you’ll handle your money flow on your own and whether it’s similar or totally different from the way you lived as an DINK. This might mean changing your routine and costs of living in order to make adjustments to one income.
Care for yourself When you end an affair can result in losing the support system you have regardless of whether it was an informal group of friends or your former partner’s family. Integrating these to incorporate activities into your budget could assist you in finding others who share your interests, should you decide to establish a new group. Setting aside a portion of your money for self-care, whether it’s for therapy, or to reconnect with people who you’ve lost contact with — will help you discover your inner self.
If you’re looking to take a serious look at your relationship, or you’re wanting to end it working with a financial advisor can assist you in navigating financial issues. From budgeting, estate planning, to deciding if you should own joint property or accounts, don’t forget to consider other experts in your life, including your lawyer and therapist while you explore the many other facets of your life, while also interacting with or completely dissolving from someone else.
