Another financial post – how to split between accounts.

posted 2 years ago in The Lounge
Post # 2
Member
1262 posts
Bumble bee
  • Wedding: May 2018

Both of our works (which do direct deposit) have an option where the direct deposits can be split between different accounts (personal and joint). You guys could ask your work if they’d do it.

Post # 3
Member
5583 posts
Bee Keeper
  • Wedding: July 2018

kmmq72 :  Why would you need to make a joint deposit weekly? We have our salary paid into personal accounts and have worked out a monthly average for bills that we each transfer to the joint account the day after we get paid. This is a direct debit so we never have to do anything or even think about it. 

Post # 4
Member
5889 posts
Bee Keeper
  • Wedding: April 2013

If I were you I would do this:

Step 1 – sit down with your Fiance and set up a budget. From this budget you’ll have a good idea of exactly how much money you two are willing to spend on your joint expenses each month. If you’re totally lost on how to budget, you can find some great resources online. (Look at YNAB or Dave Ramsey if you need help getting started).

Step 2 – From your budget, you now have a concrete dollar amount that needs to be transfers into your joint account each month. Since you earn about the same, I think it most likely makes sense to contribute 50/50.

Step 3 – Each of you set up an auto transfer from your bank account to your joint bank account every month. I personally think that you should be budget “ahead” enough to set up this transfer to go on the 1st of the month regardless of your pay day, but if that won’t work for you, set it up to transfer the day after your 1st pay day of the month. There is no reason to physically go to a bank to do this.

Step 4 – Whenever each of you is making a purchase that is considered joint, use the debit card associated with your joint account. If you have direct bill pay for joint expenses, draw it from your joint account.

Step 5 – Have a separate debit/credit card that use use only for your personal expenses.

Step 6 – If you find after a few months that you need to adjust the $xx that is going into the account, discuss it and then do so. Follow your budget and track your spending to keep on track with your goals. What you’re proposing isn’t super complicated, I think this will work nicely.

 

Once you’re married I’d probably swap it so that both of your checks get deposited into the joint account and then you each transfer a set dollar amount to your personal accounts for discretional personal spending (and “allowance” if you will), but that’s really up to you.  I tend to find that the longer a couple is married the more they become comfortable with a lot of things (student loans, house hold and vehicle expenses, etc) being “ours” instead of “mine/yours” but I think that you can alwasy make that move gradually as it feels right for your particular financial circumstances.

Post # 6
Member
2395 posts
Buzzing bee
  • Wedding: October 2016

We have a main account that the bills get paid out of and then have separate accounts that are earmarked as each of our personal accounts. We also have a savings account.

Our budget is such that we know how much needs to go in to pay the bills. And this includes all of our bills and includes what we budget for incidentals and food. For you, this would include your loans and debts. We are of the opinion that once we’re married all debts are “our” debts.

Then we’ve already agreed on a dollar amount that we earmark as personal money. And we have this automatically transferred out of our main account into each of our separate accounts. We both get the same amount. Once again, wesex are in this whole life thing together as equals, so we feel it’s only fair to have equal discretionary funds. 

And then any leftovers go to savings. I wish that we had a specific amount or percent for savings, but we’re not there yet, so that account just gets the leftovers.

If you have automatic deposit, your work would probably allow you to split up your money out of each paycheck to go into different accounts. So, you could set your paycheck to deposit money into the main account and to each of your discretionary accounts. Then his would simply be deposited into the main account.

Post # 7
Member
5889 posts
Bee Keeper
  • Wedding: April 2013

kmmq72 :  Does your FI’s bank not offer the option to deposit checks from their smart phone ap?  I think this is quite a common feature these days.  That could be really convenient for him if he’s paid weekly via check.

Post # 8
Member
6646 posts
Bee Keeper

So we don’t have a joint savings account, and I can’t advise you about that, but I will tell you how the rest of ours breaks down.

We bought a house and put the mortgage through a bank. The bank said if you open up x amt of accounts with us, they will remove the fees from all of them. So I switched over my main chequing and savings accounts, we also have the mortgage, line of credit and joint account through this bank.
We figured out what the monthly house expenses were – mortgage, electric, water, gas, home insurance, property taxes – added a little bit extra, and that goes into the account. I have mine set to auto transfer each pay cheque, and the mortgage comes out a few days later. H still uses a different bank as his main, so he will sometimes e-transfer the money, but often will go into the bank, get cash, goto the other bank and deposit it. He does his once a month, but accounts for how many pay periods there are that month (ie sept was a 3 pay day month so 3 mortgage payments taken out, he added extra in to account for that).

We got new car insurance once we moved in together, that also comes out of the joint account.

We both kept our phones on our personal accounts. So really, we only use the joint for actual house items. We bought my car out entirely, and his car went on the line of credit. He makes those payments himself.

We might re-evaluate now that we’re married, but this has been working for us for the past 4 years so we aren’t in a rush.

Post # 10
Member
5889 posts
Bee Keeper
  • Wedding: April 2013

kmmq72 :  “Sometimes I just get into my own head and think the multiple transfers to multiple accounts is A LOT to keep track of.”

They can be, but I think there are two keys to keeping it simple and working for you:

1) Set up auto transfers.  No one want to have to think about doing these transactions.  You can usually even set your auto transfer to email or text you so that it reminds you that the transaction has happened.  So convenient.

2) Make sure that you’re keeping a good float in your bank account.  For a lot of poeple, keeping an extra $1-2k in their bank account that they don’t really plan to  use helps to smooth out any bumps in timing of transfers, big bill withdrawls, etc.  If that doesn’t sound realistic to you right now, make it a goal to get there.  YNAB talks about this idea of living on last months income, which I think is a really good way to think about it.  IF you need this month’s income to pay this month’s bills…you are in for a stressful life – https://classic.youneedabudget.com/support/article/rule-four-live-on-last-months-income 

Post # 12
Member
2493 posts
Buzzing bee

Fiance and I just had our big financial talk – he gave me access to his checking, savings, and cc account, and he walked me through 1 month and showed me all the “set” expenses that come out each month.

I already keep a personal budget workbook with a separate sheet for each month, so I added a November sheet for him after my November sheet and changed all the amounts and dates to reflect his income and expenses.

From there, I added up each of our monthly expenses separately and figured out what percentage of our respective incomes they are.

My set monthly expenses (including student loan debt) came out to about 62% of my income, and FI’s (including his cc debt) came out to 81% of his.

Fiance has a higher income than I do, but he has never learned to track his spending and manage his money wisely. I don’t judge him – I only figured out how to do all this for myself about 5 years ago.

But I looked at how much money each of us would be left in our personal accounts as “play” money if we contributed our exact percentages to the joint acount, and Fiance was left with an excrutiatingly small amount. 

So the fairest system I could come up with was for me to contribute 70% of my income and him to contribute 75% of his. The percentages we contribute will probably be adjusted once our respective debts are paid off and our monthly total expense adjusts downward. (But we will probably be TTC by then, so this is probably wishful thinking! lol)

As for how to get the money into the joint account, we are each going to ask our employers if we can split our direct deposits. If we can’t, we will just do a venmo or direct transfer each month on a set date.

As pp have mentioned, we plan to each contribute a little more than needed (maybe +$100 each) each month to slowly build up to a large buffer so that nothing bounces.

I will manage the joint account since I live on my excel spreadsheet pretty much every day. And we will both have access to each others personal accounts for complete transparency. 

Once we live with our personal spending money for a while and determine if anything needs to be adjusted, we will come up with an amount that needs to be discussed before spent. It will probably be ~$200.

Fiance is a bit of an impulsive spender, and I think it will be good for him to actually have to save up for a few months for a large purchase instead of just pulling the trigger any old time. 

cbgg :  Thank you for that link – I’m excited to read up on this!

Post # 13
Member
98 posts
Worker bee
  • Wedding: May 2014

My husband and I do things similarly to what you are planning. We each have our own personal checking account, then we have one joint checking account, one joint savings account, and our emergency fund sits in a harder to access high interest yielding account. 

My husbands checks are deposited into our joint checking account. I’m a bartender, so I deposit my money once a week into our joint checking account. I am the bookkeeper of our household, so I pay all of the bills out of our joint account. I move $400 a month to my personal checking account and $400 a month to my husbands checking account. We can use that money for whatever we want, and we refer to it as an “allowance”. If we don’t spend it, it can carry over, or we can spend every penny of it. 

I move money into our joint savings account when I pay all of the bills. After everything is paid, I keep a balance of $1000 in the joint checking. This is mostly in case there is an unexpected cost. Truthfully, I don’t need to keep that buffer because it is very rarely used, but mentally I feel better knowing it’s there. Our savings account usually has a healthy amount in it, but it is used for multiple things. Rather than multiple savings accounts, I keep a spreadsheet of all of our goals and how much money is earmarked for each goal. I make deposits into our Roth IRA’s twice a year, we are saving for a master bath remodel, and we are saving for a new car for my husband (his car is 8 years old, so we are thinking of replacing it within the next 4-5 years). 

We consider all debt “ our debt” and we pay it together. How aggressively you pay debt down is a discussion to have together. We pay debt very aggressively and really only owe for our house. We have a loan for my car, but the only reason is because it’s 0% interest. We have one student loan left for my husband, and we will be paying it in full in February. 

When joining finances, it can take a little trial and error to really find what works. We had to rework our budget initially, probably 3 times before we found the best way for us. 

Post # 14
Member
3420 posts
Sugar bee
  • Wedding: June 2016

kmmq72 :  It does seem like a lot to be making transfers to so many accounts. You should make as much of it automatic as you can. 

Also, an option might be have everything set up with one bank. One that has a good app and makes deposits, transfers, etc easy. For instance, my credit union app is super easy to log into on my phone. I deposit my checks through the app. And then I easily make transfers from one account to the other, instantly and for free. If you’re both with the same bank it’ll be so much easier to transfer money to each other.

Darling Husband and I sit down once a month to pay bills, because he only gets paid once a month. So we go through all of our accounts and bills, transfer money from checking into savings, etc. It sounds like you two are doing a lot of things on a weekly basis, which is a lot to deal with. Perhaps you could make it a monthly thing, when you talk about finances, make your transfers into savings, and pay off bills?

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