Combining the Finances between Your Significant Other and You

According to a study conducted by the School of Family Studies and Human Services, money arguments and troubles cause the most divorce cases than another type of disagreement. Finances are a difficult situation to deal with in a relationship. There are many couples who decide to live together or combine responsibilities before marriage and must combine their finances at the same time. However, before doing so, check out these following tips.

Lay Out the Rules

Consider your current financial arguments such as arguing who will pay for an outing or if your partner tends to overspend. If these disagreements often occur, put off sharing your checking accounts. Make an appointment and seek out the assistance from a financial counsellor.

Your financial advisor or counsellor should be with a firm that has a fee-only service of which they give you financial advice and not try to sell you a product, such as life insurance. For example, Lantern Financial, LLC is operated by Harmony. This program assists couples in learning how to save and spend their budgets before things get argumentative between couples.

Contribute Equally

For some couples, contributing equally for bills and such is easy. They make similar salaries. In this case, you two can get a joint account: a checking account for combined household bills and a saving account for future expenses and emergencies. Both of you should input the same dollar amount into the accounts each month. It’s simple and easy to keep track of if you both participate in your employer’s direct deposit program. You can split this up to put the agreed amount in your joint accounts. The remaining funds can be deposited into your respective personal accounts.

Your joint account should be used to pay shared bills such as your TV cable service provider, rent, and utilities. Your personal accounts should pay for any bills you aren’t both contributing to such as your cellular bill or auto payment.

To keep things happy and fair between the two of you, make sure you put money into a savings account as your “splurge” money. This is money to have fun with for vacations. You can also use this to start saving for your wedding or purchase a new home.

Contribute a Portion of Your Salary

Even if you two are not making similar salaries, you can both contribute towards the expenses, fairly. For instance, contribute a portion of your salary toward the bills, such as an agreed upon percentage. If your combined household salary is £100,000, but your salary is just £20,000, contribute at least 20% towards the household bills. Of course, if you can do more, do so. However, you both need to contribute what’s fair and doesn’t put too much pressure on the other.

Of course, divulging all additional monies will take away your independence. So to keep it, it’s OK for you both to have a small savings account neither of you knows about. This prevents you both from holding a financial strength over the other.

Smart phone Options

As a joint checking account can help with your combined expenses, you should also consider other options, such as the use of your smart phone. An easy and fair smart phone app is Splitwise. This free Android and iOS app helps you both keep up with who has contributed what. It even generates IOU’s and does the maths so that you can rest easy and fair!

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