How Couples Can Split Their Money And Bills To Be Fair

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.



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