When you want to take your relationship to the next level, the first step you can go for is to start living together. If you have already done it or plan to do it in the near future, you should know that your finances will also be merged. To do it right, you should read more about how couples can split their money and bills to be fair.
Should You Go For 50/50
One of the things people do is split the
expenses 50/50. It might work when both people are earning nearly the same
amount. However, it won’t work when one person earns a lot more than the other,
as one person could be spending their entire paycheck on shared bills while the
other has a lot of money to burn.
The Alternatives
If you don’t want to take the 50/50 split
route, you should consider opening a bank account where both of you deposit
your entire paycheck. Then that account can be used to pay for everything. This
way, you can know where every dollar is going.
Another option is to split the bills based
on the percentage of income each of you contributes to the total household
income. It’s a fair method that also lets you keep separate accounts. You can
also choose to open a new bank account that you share, where each of you can
add the percentage of income you want to contribute towards household expenses.
Talk It Out
If either or both of you have unrelated
expenses to your partner, like your student
loans, the car loans for your individual cars, etc., you need to talk about
it. If your partner has a lot of debt, you can choose to help them out by
contributing more toward household expenses.
Set Goals
You should also set common savings goals
that will help shape your future. Set short and long-term viable goals and make
sure both of you are on the same page. You can create joint savings account for
the same.
Invest Smartly
It is also a wise idea to craft an
investment strategy that works for both of you. One can invest in high-risk
investments that offer a higher return, while the other can keep the money
secure in low-risk investments that offer a small return. View your investment
simultaneously to ensure that you are not duplicating efforts and that your
overall investment strategy is consistent and sensible.
Make sure you want the same things in retirement
or can reach a decision that suits you both. If you want a quiet life after
retirement and your partner is looking for adventures, you need to develop a
plan that fulfills both needs.
Monitor Every Dollar
After you have decided how to split your
money, you also need to learn how to spend money wisely to get more value for
money. Sit down at the end of every month to count the expenses and ensure that
you are not wasting your hard-earned money.
Sources:
https://hermoney.com/connect/love/how-couples-can-split-their-money-to-be-fair/
https://www.kindafrugal.com/should-relationships-be-50-50-financially/
https://www.ellevest.com/magazine/family-relationships/split-expenses