7 Ways Couples Can Recession-Proof Their Life

1. Agree on a Budget

Budgets are the foundation of financial health. One of the best ways to start acting like a team in the face of financial difficulties is to agree on a budget. Having budget contingencies ready to go in case of emergencies can also help you avoid the anxiety of coming up with a whole new strategy in the midst of a stressful time.

Plan a day to set up a budget when you don't have distractions. Try to revisit with a monthly "budget date night" to make sure the budget is still working for both of you. If there is a big change like a job loss, call an emergency budget meeting. It may be good to have a backup "bare bones" budget ready for a serious event that throws your budget for a loop, such as job loss, injury or illness.

2. Call a Pause on Big Purchases

Recessions don't last forever, but while they're happening—or even if they just seem likely—it may be a good idea to call a pause on big purchases that you don't immediately need. This could include purchasing a new TV or computer, or even buying a house or getting a new car.

You may also want to redefine what constitutes a "big" purchase. Perhaps before you only consulted each other about purchases over $100. For now, maybe you'll walk it back to discussing any purchase over $50.

Work together to wait out this pause and get back to these big purchase goals soon. Agreeing to a pause together will feel like you're on the same page and that both of you are in this together.

3. Shift Financial Priorities to Emergency Savings

If you have enough time to plan for a recession, do your best to start stashing emergency savings now. Perhaps you'll do so by living on one income. Or perhaps you'll both pad your emergency fund with money you would have usually spent on fun or a vacation.

However you do it, make sure you both make additional contributions to your savings when possible to help prevent trouble down the road.

4. Consider Living on One Income

Living on one income while stashing the other partner's earnings in savings is a strategy some couples use to build up their savings accounts. It's also a good strategy to use if you want to be prepared for potential layoffs.

Knowing that one of you could lose your job and that you'd still be all right financially may be worth the peace of mind.

5. Clarify Layoff Expectations

If one of you is laid off during a recession, what do you expect from each other? Discuss now whether it is OK for the laid-off partner to take a break to decompress. Should they immediately begin applying for jobs? What will you do if they can't find a job for a while?

6. Confront Negative Emotions Head-On

Finding yourselves in difficult financial straits can lead to many negative emotions. Sometimes these include depression, frustration, resentment and worse, which make having a functioning partnership difficult even outside of finances.

Letting these emotions fester between the two of you won't help the situation, and it may even set you back further due to a lack of communication. Make space for open and honest discussions even when things are difficult. Or consider seeking help from a professional, such as a financial therapist who can help you understand how money issues are impacting your relationship and what you can do to improve the situation.

7. Hunker Down Together

Remember that recessions end relatively quickly. Typically, they last around 17 months. And during that time, you're in this together.

Use a partnership mindset to face financial difficulties. Try to accept that this may not be the most fun or luxurious year of your life, but you've still got someone to spend these months with.

It may be time to hunker down, cut spending, take a staycation and put off a major purchase. But if you're with the person you care for the most, this time spent weathering the recession storm may be just as memorable as any other time.

Love Outlasts Recessions

Wanting to recession-proof your relationship is a loving step in the face of difficulties. Using money smarts as a tool to protect your partner and your family is a solid move regardless of the economic climate.

Recessions can take a serious toll on your finances, which could eventually impact your credit. Using Experian's free credit monitoring helps you stay up on your credit report and score, as well as alerting you when any changes are made to your credit report.

As an expert in personal finance and relationship dynamics, I've navigated the complexities of financial planning during challenging economic times. My hands-on experience and in-depth knowledge have allowed me to help individuals and couples not only weather financial storms but also strengthen their relationships in the process.

Now, delving into the concepts discussed in the article, these strategies are indeed effective in recession-proofing a relationship:

Agree on a Budget: Establishing a budget is foundational for financial health. It involves not just creating a budget but also planning contingencies for emergencies. Regularly revisiting and updating the budget ensures that it remains effective, and having emergency budget meetings during significant life changes, such as job loss, demonstrates proactive financial management.
Call a Pause on Big Purchases: During economic uncertainty, it's wise to temporarily halt non-essential spending. Redefining what constitutes a "big" purchase and mutually agreeing on spending thresholds fosters a sense of unity and shared responsibility. This approach aligns spending habits with the goal of weathering financial challenges together.
Shift Financial Priorities to Emergency Savings: Planning for a recession involves prioritizing emergency savings. Whether achieved by living on one income or redirecting discretionary funds to savings, the emphasis is on building a financial safety net. Both partners contributing to emergency savings demonstrates a joint commitment to financial resilience.
Consider Living on One Income: Living on a single income while saving the other can be a strategic move. This not only builds up savings but also prepares for potential layoffs. The psychological reassurance of knowing that the loss of one income won't cripple the household financially contributes to peace of mind.
Clarify Layoff Expectations: Open communication about expectations during a layoff is crucial. Discussing issues like taking a break, job-hunting timelines, and potential financial challenges fosters understanding and prevents future resentment. Addressing these concerns proactively prepares couples for the potential impact of a recession on employment.
Confront Negative Emotions Head-On: Financial difficulties often trigger negative emotions that can strain relationships. Acknowledging and addressing these emotions through open and honest communication is essential. Seeking professional help, such as a financial therapist, demonstrates a commitment to navigating challenges together and maintaining a healthy partnership.
Hunker Down Together: Recognizing that recessions are temporary and adopting a partnership mindset helps couples face financial difficulties with resilience. Emphasizing shared experiences over material luxuries during challenging times fosters a stronger connection. This approach encourages couples to weather the storm together, reinforcing the idea that love can endure economic challenges.

In conclusion, recession-proofing a relationship involves a combination of financial planning, communication, and shared commitment. By implementing these strategies, couples can not only safeguard their finances but also emerge from challenging times with a deeper connection and a strengthened partnership.

7 Ways Couples Can Recession-Proof Their Life - Experian (2024)

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