Finance with Frankie: Money in relationships and lessons for SME's

Starting with money and the effect it could have in your relationship, let's assume the scenario that your partner earns three times what you do. In that case, it makes sense for you to start thinking about ways of navigating your finances without losing your sense of independence.

The fact that you are thinking about this proactively is a genuinely good sign. Money conversations in relationships can feel loaded, but they are almost always more productive than the silence that tends to replace them.

How to Stay Financially Independent When Your Partner Earns More

Start with values rather than numbers. Before you get anywhere near a spreadsheet, talk about what money means to each of you individually, what your short, medium and longer term goals look like, and where they align. From that foundation, a budgeting conversation becomes much easier, because you are building something that reflects both of you rather than defaulting to whoever earns more.

Many couples find a hybrid approach works well: a joint account for shared expenses, alongside individual accounts for personal spending and savings. The second part of that matters more than it might seem. Building your own savings and investments, separate from your partner, is not a signal of distrust. It is a practical expression of financial independence, and it means you are working towards shared goals without your sense of security being entirely contingent on the relationship.

On the practical side, with a significant income gap between you it is worth thinking carefully about tax efficiency and how to make best use of allowances on both sides. Longer term, protection such as life insurance and income protection is worth considering, and sitting down together with a financial adviser to build a joint plan that respects individual needs as well as shared ones can make an enormous difference. The goal is a structure you both feel respected within, regardless of who earns what.

What Are the Three Most Important Financial Aspects of Running an SME?

This is one I get asked regularly, and my answer is always the same three things.

Cash flow first, always. It is what keeps you operating, and managing it carefully is the difference between a business that absorbs shocks and one that doesn't. Forecasting is essential here: build a projection that aligns to your specific business objectives, at a timeframe that actually works for you, whether that is quarterly, annually or something in between. Aim to have three to six months of operating costs in reserve. Cloud accounting tools such as Xero make real-time tracking genuinely manageable and are worth the investment early.

Invoicing comes next, and this is advice that surprises people. Especially in the early stages, pay your own invoices. It sounds laborious, but logging into your bank account regularly, seeing exactly what is going out and understanding your overheads in detail builds financial discipline and awareness that is very hard to develop any other way. It also means you spot unnecessary expenses before they become habits. As you scale, this becomes impractical, but even then, regularly reviewing your outgoings yourself rather than delegating it entirely is worth doing.

Tax efficiency is the third. Make sure your business is structured correctly from the outset and understand what taxes you are liable for. Familiarise yourself with allowable expenses and use them. If you are a company director, a combination of a small salary and dividends is often the most tax-efficient way to pay yourself, though dividends can only be drawn if the business is profitable. If you are self-employed, put your estimated tax aside monthly into a separate savings account so you are never caught short at year end. A good accountant who knows your sector is one of the best investments an SME can make.

I am a US citizen living in the UK. How do I invest without getting hit by both tax systems?

For US citizens living abroad, straightforward rarely applies when it comes to investing, and it is worth being clear-eyed about that from the start.

The good news is that there is an income tax treaty between the US and UK specifically designed to avoid double taxation. The less straightforward news is that planning is required to ensure you are actually benefiting from it. The Foreign Earned Income Exclusion is one of the most valuable tools available to US citizens living and working abroad, and is worth understanding in detail. You will also need to continue filing a US tax return regardless of where you are based.

Some of the most commonly used UK investment vehicles do not translate well for US taxpayers. ISAs, for instance, are tax-free in the UK but offer no protection from US tax, so they are less useful than they appear. UK pensions can still work in your favour, but the tax treatment of contributions and growth varies depending on the pension type and how the IRS views it, so this needs careful checking. It is also worth thinking about your longer-term plans: money invested in a UK pension cannot be accessed until age 57, so if your intention is to return to the US at some point, that timeline matters.

A general investment account or standard trading account can be a sensible starting point, as long as you are confident you are investing in a way that is compliant from a US tax perspective. The single most important thing you can do is work with a dual-qualified accountant or tax adviser who understands both sides of the US-UK treaty. This is genuinely specialist territory and the right professional guidance will pay for itself.

The information provided here is for general guidance only and does not constitute personalised financial advice. If you are considering making an investment or significant financial decision, please seek independent financial advice tailored to your individual circumstances.