Relationship Chronicles: Monthly Financial Meetings

Last night the BF and I had a long discussion about our finances and our future. We decided that we needed a monthly meeting the first weekend of each month to discuss our financial goals and milestones we need to be meeting (savings goals, future plans, etc) to stay on track.

He’s finally going to use Mint.com to monitor all his finances which I am really happy about. We’re going to use Microsoft Project to track our milestones and Excel to plan out how much to spend and save in order to reach our goals. I’m really excited! 

Nerdy? Kind of. 
Necessary? Probably so!

One page we weren’t both on was how long it would take to move out and actually live in a place of our own. At the moment we live with his parents semi-rent-free (he pays for their credit card bills ~$300/mo and I pay ~$150/mo for food/utilities) and they have been so gracious letting us stay. I will get into that more in another post, but anyway, I was thinking we would only be staying with them for a max of 2 years. BF, on the other hand, wants us to be financially secure and wants us to not worry about money, ever. His plan was to move out in about 5 years. Last night we figured out that we could possibly do it in 3 years.

Basically, we COULD move out right now and rent a place. In SoCal rent is close to $1500/mo for a tiny apartment. In our case, renting is just not for us. We would rather own a place and save money for a down payment. Our plan is to put down 25-30% for a condo, rent it out (while we are living with his parents), and pay it off in about 5 years. By the time we buy a 2nd property, that first investment property will be paid off and the monthly rent shall be purely profit, which will help pay the mortgage on the 2nd property.

Could we buy the 2nd property before paying off the first one? That was my question. I want to get out of his parents’ house sooner, but if we do that, we would be trying hard to pay off the first property while paying a high mortgage on the 2nd property. There is also the risk of interest rates increasing, and basing it off our current salaries, it would be difficult. By compromising, we are hoping for 3 years and hopefully we both get nice raises within that time frame to help speed up the process. In addition, BF is starting a side business which could potentially bring in $25k-$100k the first year...it could totally take off or it could sort of flop, but the good news is the start-up cost is basically nonexistent.

Is our plan foolproof? Probably not, but that’s okay. We’re working on it. I’m just glad that we’re both being open-minded and trying our best to give ourselves (and future kids) a comfortable life in the future.

How do you discuss finances with your partner? 

Or do you just keep it separate?


thewholeguacamole said...Best Blogger Tips[Reply to comment]Best Blogger Templates

I wish I could get the BF to see the importance in discussing finances once a month. We just discuss big purchases and that's about it. It's very frustrating. My first husband and I had two properties (one that we rented out to college students.) It worked well for us. It's doable but it takes some careful planning. Basically our renters were paying our mortgage and we weren't getting any extra income from it yet. We also managed to contribute an extra $200 a month towards to rented house as well as the house we lived in. Had we stayed married and not sold both properties then the second house would now be paid off (after 5 years) and the renter's money would just be extra cash every month.

Money Pincher said...Best Blogger Tips[Reply to comment]Best Blogger Templates

BF and I haven't discussed it in full details. Our accounts and finances are separate at the moment. We do discuss our future finances when we are married and what we can do to get a second property. His finances are more complicated than mine (meaning he has way more $$ than I do) so we are thinking of just combining our finances by using 1 credit card to pay everything (bills and etc) and we will pay the credit card from our own accounts. We haven't really discussed if it will be 50-50 or proportional to what we make yet.

Daisy said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Ohh gosh.
I try to discuss it with boy, but he doesn't want to. He does well, and saves money, but he eats fast food every day and I want him to save it all. He also makes much mroe than me and has no debt, so it would be unfair to expect that of him. We just know we're supposed to be saving money, and we both HAVE saved, except its not a set amount per month, and we've never had an in depth conversation of the specifics.

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