(Closed) Newlyweds Managing money :/ Tips … Advice

posted 4 years ago in Married Life
  • poll: When it comes to money management ....
    Things will get easier your newly married ... it takes time to adjust : (40 votes)
    75 %
    Things will get harder ... you dont even have kids yet! Brace yourself :) : (13 votes)
    25 %
  • Post # 3
    Member
    2623 posts
    Sugar bee
    • Wedding: November 1999

    I think its time to sit and have an honest conversation with your DH.

    Somethings to talk about

    • What can you afford to spend and on what each month? 
    • Set an individual budget you both stick to. IE you each get $x each month for eating out etc
    • Set a household budget. What can you spend on food each week. Stick to that budget
    • Set a “Other” budget to be used only if you both discuss that budget (IE the going out/food budget has been met and its not the end of the month)
    • Have a regular $X moved from each pay check ot the savings. Noone withdraws money from the savings account unless both people agree. 
    • Sit each sunday night to review the bank account withdrawls together and tally where you are in the budget

    It does take work to have a budget for a household and will take a few months to get the hang of it, but the key to it is open conversation and honesty with each other and willingness to stick to the budgets set. This is why its important that each of you work together to set the budgets.

    Post # 5
    Member
    965 posts
    Busy bee
    • Wedding: April 2013

    DH and I sat down before getting married and pulled up a monthly budget template from Excel and laid everything out…income, bills, misc. spending, car maintenance, groceries, etc.  I mean we got really detailed!  It’s a bit stressful and it actually made me really nervous because I have some stupid debt from several years ago when I thought it was cool to live off a credit card *SMH* but it was actually very enlightening and encouraging and we have been very open and honest about things that we spend money on.  We have also agreed that any purchase above $75-100 warrants a discussion before we swipe the card.  I’m no expert, but for us it has definitely been an adjustment but I feel like we’re figuring it out and it’s getting easier.  Just talk it through 🙂 

    Post # 6
    Member
    2623 posts
    Sugar bee
    • Wedding: November 1999

    @Milan21xx:  It can appear more complicated and each couple will find what works for them, but for us it is easier. Its easier to tally up how much was spent and where.

    You may find that having the joint account, but withdrawing money and spending cash will work for you. Create envelopes each week. 1 for groceries, 1 each for spending money etc.  

    Then, you can only spend the cash in the envelop for that week. Anything leftover can rollover to the next week. So if you want to save your spending money for a couple weeks to buy a larger ticket item, then you can. You just have to plan.

    Post # 9
    Member
    2363 posts
    Buzzing bee
    • Wedding: October 2012

    @Milan21xx:  We have one account for all bills and savings and a second account for discretionary spending.  This is basically the electronic version of the envelope system: we can only spend what’s in the second account each week.  In addition, we each get a personal allowance each month for fun money so we can splurge a little and not have to ask the other person.

    Post # 10
    Member
    668 posts
    Busy bee
    • Wedding: August 2010

    Some things that work for us are

    1. Have a budget, or at least budget out your typical expenses so you know a ballpark number of what you need to get through a month

    2. Talk your financial goals over and MAKE SURE you are on the same page

    3. DON’T HIDE FINANCIAL DECISIONS FROM EACH OTHER.

    4. Periodically check in with one another, see if there are upcoming expenses/needs/wants that will be fulfilled

    5. Monitor the bank account.

     

    Post # 12
    Member
    384 posts
    Helper bee

    we have two checking accounts, both our names are on both of them. We have one savings. We put money in our savings when our checks come in and leave enough for spending and bills. We discuss if we need to take out of our savings.

    Post # 13
    Member
    2382 posts
    Buzzing bee
    • Wedding: June 2014

    Everyone has a different system that works for them.  We have a joint checking for bills, joint savings and our own accounts.  My paycheck goes into my account, and I transfer into the joint checking & savings as needed.  We don’t make the same amount, so we base the contributions into the joint account accordingly. 

    The most important thing is to talk about it and have a process that works for both of you.  You’ll probably change and adjust it as time goes on, which is a good thing.  Adjust the system to your needs, not the other way around. 

    Post # 14
    Member
    2623 posts
    Sugar bee
    • Wedding: November 1999

    @Milan21xx:  This amt will vary dramaticall based on your income. First I would figure out what you need to live. IE no discretionary spending.

    Income

    – (minus)

    Living expenses

    ________________

    discretionary money

    * 50% moved to savings (random number- choose what works for you and be sure this dollar amt will get you to your long term financial goals)

    ___________________

    remaining money to be used for discretionary spending (clothes, eating out etc.)

     

    Post # 15
    Member
    9147 posts
    Buzzing Beekeeper
    • Wedding: November 2013 - St. Augustine Beach, FL

    Sit down and develop a budget and agree to stick to it.  If after a few months it’s clear that one or both of you aren’t sticking to the budget, figure out a way to deal with it.

    I am better at budgeting and saving than my FH so he allows me to take care of it.  I set up automatic transactions that occur every two weeks that take money out of my checking and place it into savings for me.  It helps because I budget that way and I essentially never see that money in my checking account; I just see my savings growing and growing.  It also helps to make it more difficult to access your savings so you have to really think about why you are taking money out of savings.  Our savings account is with a different bank and we do not have checks for the account and the debit card for the account is locked up.

    Reassess your budget as necessary.  I alter our budget as necessary when we take trips or have company visit (since we eat out more when people visit.)

    Post # 16
    Member
    364 posts
    Helper bee
    • Wedding: December 2013

    @beachbride1216:  you have given really good advice here. I love automatic transfers! If the money goes straight into savings, you’ll just work around it and never miss it. We have an ING online high interest savings account. We can transfer money from it, but it takes several days, and there is no debit card. So it’s there for emergencies and big planned expenses (vacations etc) but it’s not tempting to get at on a daily basis.

    Our budgeting system is pretty casual, some of you totally put us to shame. Basically everything goes in one account. On the first the mortgage gets paid. On the 15th the rest of the bills get paid. Money is transfered to savings from each paycheck. And the rest is for whatever. It works for us because we have a pretty high income and there’s always money left at the end of the month.

    I really want to set up a better budget though, because with the amount we make, we could definitely be saving a lot more. Too much spending going on I think! I did track grocery expenses for a month so I know how much we actually spend on food (a lot!) so thats a start.

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