Set up standing orders to ensure consistent saving as a couple. PHOTO/ MICHAEL KAKUMIRIZI
In today’s world, where financial security is crucial, saving and investing together is not just a wise decision—it can be a relationship game-changer when done right. Amid economic uncertainties, joint financial ventures offer more than meets the eye. They can transform a couple’s approach to money into a shared journey, fostering deeper communication and collaboration
Flavia Nabukwasi, a financial literacy advisor at Uganda Bankers’ Association, shares some tips on how a couple can plan to save or invest together this year
1. Align your financial goals
This requires two key steps: open communication and setting joint goals. Money talks between couples have been a really delicate path to trek ever since the term "gold digger" was first coined.
However, for a couple to build a stable financial future, Nabukwasi advises that, "The couple needs to have a heart-to-heart conversation discussing their current financial situation, individual financial dreams, and long-term goals together." For example, "buying a home in Namugongo, starting a business in Kampala, or saving for children’s education at any insurance company or financial institution."
"In setting joint goals, the couple needs to set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives. For example, save Shs5 million by year-end to invest in a poultry project in Mukono." "Aligning your goals forms the foundation of a couple's financial future," Nabukwasi advises.
2. Assess your current financial position
Most couples hide their financial situation and spending habits from their partners, something that curtails the realisation of joint goals. As such, couples must talk openly about money, and their current situation including income, and debts. "It is easier to stay motivated when you're working towards something you care about as a couple," Nabukwasi notes
"The couple can create a joint budget that enables them to track their joint incomes and expenses. The couple should allocate at least 20 percent of their income to savings and investments." Nabukwasi says.
"They can then identify debt - the couple can make a list of all debts and create a repayment plan. For example, pay off high-interest debts such as digital loans from MTN MoMo or Airtel Money," she adds.
3. Establish a savings plan
According to Bank of Uganda (2024), only 20% of Ugandans have savings accounts. A 2023 survey by the Uganda Bureau of Statistics revealed that 68 percent of households face financial stress due to lack of savings. As such to break out of this loop, Nabukwasi advises as such;
▪Open a Joint Savings Account: "This requires using financial institutions regulated by the Central Bank and are offering competitive interest rates," says Nabukwasi.
Establish your savings account at a bank or credit union that is different from where you do your primary banking as this hinders the temptation to spend savings upon logging into your primary financial institution account.
▪Automate savings: "Set up standing orders to ensure consistent saving as a couple," Nabukwasi advises. Automating savings can remove the urge to spend extra cash sitting in your checking account.
▪ Emergency Fund: "Couple(s) should build a fund equivalent to three to six months of living expenses to cater for uncertainties, Nabukwasi notes. For instance, a couple can save Shs1 million for emergencies such as medical bills at the hospital, unexpected job loss or income reduction," she adds.
4. Explore investment opportunities
As a couple, you need to figure out an investment budget. You need to decide upon key aspects and questions, like: Can both of you contribute to the investments? If so, how much will each contribute? Can both of you contribute fixed amounts or varied amounts? (This depends on the job and salary status of the couple). How frequently can both of you contribute?
Then you can explore and select a venture such as investing in SACCOs (Savings and Credit Cooperatives Organisations).
Ms Nabukwasi highlights that many SACCOs in Uganda provide good returns on contributions." "A couple could also consider treasury bills and bonds - safe, government-backed investments available through Bank of Uganda," she adds.
"Couples intending to build wealth together should diversify investments." For instance, invest in real estate in Wakiso District, agriculture in Masindi, or small businesses in Jinja for long-term growth," Ms Nabukwasi emphasizes.
Monitor and adjust plans together
Do not to lose sight of your partner’s and individual financial goals. " Do regular check-ins such that you do not lose track of why you embarked on your financial journey in the first place." "Schedule monthly or quarterly meetings to review progress." "Open and often communication is very vital when investing and saving as a couple as it ensures transparency which breeds trust," Ms Nabukwasi says.
"Reassess goals in case of unexpected life events or financial shifts."
"Celebrate milestones because financial goals can seem abstract, an aspect that could make it easier for couples to lose their momentum. As such, reward yourselves for achieving financial goals, such as a weekend getaway to the beach," she adds.
5. Manage conflicts
It is advisable to have a third party who can help you resolve conflicts as a couple. Money disagreements are so normal in a relationship.
“Couples should concentrate on finding a solution rather than placing blame. It also helps to bring a neutral third party. However, if couples can have honest conversations about their incomes and aspirations and stick to their set goals, then conflicts can be avoided.
Respect financial independence
As much as you have opened joint accounts or are planning jointly, it is also important to respect each other’s independence. Couples should also keep separate accounts for personal spending.
“Financial independence can help maintain a balance in your relationship, it is okay to keep separate accounts for personal needs,” Nabukwasi adds.
As couples embark on their financial resolutions, it is essential to keep in mind a timeless truth; "Money is only a tool. It will take you wherever you wish but it will not replace you as the driver." (Ayn Rand). To become a successful financial driver, there is a need to have systems in place rather than relying on sheer willpower.
