According to Rocket Mortgage, the average annual income for DINKs is $138,000, which is about 7% higher than the average income for dual-income households with children. With double the income, DINKs have a unique opportunity to reach their financial goals. However, double the income also means double the planning. With the right financial strategies, you and your partner will be on your way to achieving your dreams together. Here, we’ll discuss the goal-oriented steps you need to take to reach your goals.
Practice Open Communication
As with anything in a relationship, open communication about finances is the first step to creating goal-oriented financial strategies as a couple. According to Bread Financial, 44% of couples wish that they had more similar money mindsets. The first strategy couples need to have is getting on the same page regarding money and finances. Money is the leading cause of fights in a relationship, with most couples arguing about money as often as once a week. As a DINK with double the income, having a shared money strategy is more important than ever to make the most impact and reach your financial goals.
Talk About What Kind of Lifestyle You Want
When you have two incomes coming in, you may experience lifestyle creep. Discuss with your partner what you’re willing to spend on and how you want to budget before spending your double income without realizing it. Will you use the 50/30/20 rule, or will you adopt other financial strategies to work toward your short-term and long-term goals? The more you lay out your money philosophies for each other, the more you can work together.
Discuss Individual vs. Shared Goals
As a couple, you still are likely to have individual goals for your money as well as goals that you both share. For example, maybe one partner wants to start a business, and you both would like to start saving for a house. It’s important to prioritize both shared and individual goals in the relationship. Decide together how you will allocate your money to save for both goals.
Divvy Up Financial Responsibilities
For DINKs, it’s important to determine if you will combine your finances or keep them separate. If you keep your finances separate, think about whether you will share financial responsibilities equally or split costs proportionally based on income. There should never be surprises, though, if you do keep your finances separate. You can use a shared spreadsheet or budgeting app to make sure that you both have a clear picture of your finances and goals.
Agree on Saving Strategies
Just like if you were saving individually, as a couple, you have to create a saving strategy. Talk about each person’s contributions and where your money will be invested. If you have fewer financial obligations, where you invest your money can have a big impact on creating long-term wealth.
Set Spending Allowances
As a couple, it may be a good idea to account for individual spending allowances in your budget. This can be a no-questions-asked allowance for you both. Spending allowances can be refreshing when you’re working hard toward your financial goals together. It can give you some breathing room to still keep autonomy within your relationship.
Consider Retirement and Estate Planning and Tax Liability
Prepare with your partner for additional expenses that you may incur. If you are filing your taxes jointly, estimate what you will owe early so there are no surprises that will detract from your financial goals. It’s never too early to discuss other life decisions like retirement and estate plans.
Creating Goal-Oriented Strategies
One size doesn’t fit all when it comes to smart financial strategies for DINKs. Figure out what works for your relationship and commit to those goal-oriented strategies. As long as you are rowing the boat in the same direction, you’re on your way to reaching your dreams. How do you handle finances in your relationship? Let us know in the comments.
Read More
- From Mess to Success: How Organizing Your Finances Can Lead to Big Savings!
- How to Save for Big Goals: A Step-by-Step Guide to Financial Success
Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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