Money Matters: How to Manage Your Finances as a Couple

Figuring out how to share your income with another person can be hard, especially if you’ve spent years managing your finances on your own. It’s an even more difficult discussion to have if you and your partner aren’t on the same financial footing. But by having lots of discussions, doing some trial and error, and using the following options, you’ll definitely be able to combine and manage your finances the way you both wanted it to be.

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  • Option 1: A Pooled Account

What it’s all about: You will open a joint checking account, and use it for shared expenses like groceries, rent, and dining out. If you’re both paid the same amount and have the same lifestyle tastes, then have each other contribute the same amount to your joint account. But if one of you earns more or prefers to live a lavisher lifestyle, consider contributing in percentages instead of splitting the cost to 50/50.

Why it works: Once you know how much you’ll contribute to your joint account, you can already set up an automatic deposit into the account every month. It also pushes you to learn how to budget as a couple, since you’ll be reviewing how much you expect to spend each month.

  • Option 2: Completely Combined

What it’s all about: This option offers total transparency. All checking and savings accounts are combined, and you both get to decide as to how much money is saved and spent. When the finances are completely combined, each person should be really honest as to how they want to spend the money and how they want to manage the savings for the future.How-to-Handle-Your-Parents-Finances-When-They-Cant-468347863-300x194

Why it works: If the you and your partner is on the same page with how you’ll spend and manage your earnings, this option makes it easier for you to work towards shared financial goals. This also provides total transparency as how the money is being spent.

  • Option 3: Live Off One Salary

What it’s all about: This approach works when you both prioritize saving together for your shared goals (down payment for your house, emergency fund, or retirement), and living off on just one person’s salary. Through this, saving money becomes less complicated and making ends meet even with only one income becomes easier.

Why it works: If you and your partner is on the same page when it comes to saving and spending, this approach will cut the work of ensuring that enough money is being set aside every month to reach your financial goals.

  • Option 4: Completely Separate

What it’s all about: When you decide to move in together and keep your finances separate, make sure to assign who pays certain bills. One person should pay the mortgage or rent, while the other pays for the utilities and groceries. In this approach, no accounts are combined and you both get to maintain your own personal money.

Why it works: This approach is a good option for couples who are a bit nervous in sharing money for the first time, or those who aren’t ready to share control of their finances just yet.

Managing your finances as a couple will be challenging at first. But by putting any of the aforementioned financial management options at work, you’ll definitely be able to combine and monitor both your finances with ease.

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