Managing money as a couple can be hard to sort out with two incomes and two financial situations merging. However, when you start managing your finances as a couple, you’ll have a better perspective of where and how money is being spent. This can help couples keep within their budget, and even increase savings.
The first step to successful financial planning as a couple is to start talking. Lay all your financial cards on the table. It might be uncomfortable but it is necessary.
Below is 10 Tips to help couples with their finances.
Combine all your finances: Calculate up your joint income, and then agree on a budget that covers all shared expenses, from housing to groceries and bills. You need to be accepting and on the same page with your spending.
Set goals: You and your partner should set goals that you want to work towards. This can be goals such as, buying a house.
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Live off one income: All of your expenses are paid from one partner’s pay check and then you save 100% of the other partner’s pay check. This method ensures you and your partner always save money and you will continue to find smart ways to save money since you are only living off of one person’s pay check.
Take a money management course together: This will help you develop your long-term goals and identify each person’s triggers, strengths and weaknesses with money. It will also help you find more positive ways to communicate about money.
Split shared bills by a percentage of each person’s income: A percentage of each person’s pay check goes towards joint bills. The person that makes more money pays a larger percentage of the bills; the person that makes less pays less money.
Split shared bills 50/50: Every expense is split two ways. You both contribute the same amount of money towards all bills to be used for any agreed-upon shared expenses like housing, utilities, vacation, date nights, etc.
Disclose your debts: Don’t hide your debts from your partner before choosing to move in together or merge finances. Keeping them in the dark could worsen the situation.
Review and recommit, yearly: All the plans you make can be quickly upended by new jobs, new expenses and new milestones.
Split responsibility for certain bills: Each person takes complete responsibility for certain bills. One partner should be in charge of housing, utilities, and cable and the other partner may be in charge of groceries, clothing.
Read Also: 10 Reasons Why You Should Consider Long Term Partnership Over Marriage
Keep your finances completely separate: You may handle money better if it’s kept separately. You don’t have to financially rely on your significant other, and they aren’t relying on you.
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