Costly Financial Mistakes in Love: Avoid These During Stressful Times

Love and Money: 5 Costly Mistakes You Should Avoid During Financial Stress

What romantic money mistakes should you avoid during financial stress?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Love can make you do silly things, and when financial pressures bite, it can be tempting to make some desperate decisions. Recent research from Finder has revealed some of the most common romantic mistakes people make during a cost-of-living crisis. Here are five of the worst, along with some tips to help you avoid them.

Lying to Your Partner About Spending

According to Finder's money expert, Sarah Megginson, 9% of us have lied to our partner about our spending habits. While it's okay to splurge on the occasional night out, repeatedly concealing debt and purchases can erode trust and harm your relationship. It's essential to establish money rules and agreements that work for both partners.

Concealing Your Debts

Lying about your debts is an even bigger mistake, as it makes it impossible to get your finances under control. Acknowledging your debt is the first step towards creating a realistic budget and setting yourself up for financial security.

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Borrowing Money From Your Partner

Begging your partner or ex for money to help cover costs might seem like a good idea, but it can have long-term consequences. If you're unable to repay the debt, it could damage your relationship and make future financial goals more challenging to achieve.

Staying with Someone to Avoid Housing Costs

With housing costs skyrocketing, staying with a partner to save on rent or mortgage payments can be an attractive option. However, it's crucial to be honest about the situation and work on building up your savings, so you can eventually achieve financial independence.

Restarting a Relationship to Cut Costs

Rekindling an old flame to save on living expenses might seem like a money-saver, but it can be a false economy. Couples health insurance, for example, isn't cheaper than individual coverage. If financial security is the only reason you're in the relationship, it's already on shaky ground, and you're better off relying on yourself.

In conclusion, financial security should always be your ultimate goal, and while a partner can help you achieve that, it's crucial to make sure you're not sacrificing your long-term financial health for short-term gains. By avoiding these costly mistakes, you can build a stable financial future and a strong, healthy relationship.

Published: Wednesday, 22nd Feb 2023
Author: Paige Estritori

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Equity:
The amount of (or that portion of) an asset actually owned. Equity is the difference between the market value and the current amount of money still owing on the loan. This is also referred to as the owner�s interest.