Another financial post – how to split between accounts.

posted 2 years ago in The Lounge
Post # 16
Member
1932 posts
Buzzing bee
  • Wedding: October 2016

My husband and I recently 100% merged all of our accounts when we purchased a home, but before that, we had a joint account where we each deposited 65% of our paychecks, then the other 35% went to our personal checking accounts.

Post # 17
Member
1580 posts
Bumble bee

Ours works out fairly simply.  My personal account is my work direct deposit and all of the autopayments come from this account.  It’s easy to track and I can calculate the extra which I move to the savings.

DHs main account (our main account) holds all of our other direct income and we pay bills from this.  We also move extra into savings with that bank.  

We have a 3rd checking and savings throgh another bank that we both direct deposit into and this is trip, gift, splurge, savings.  We try to keep this one safe if we have to tap into savings we do the other two first.

We also do the one month ahead thing, so the main checking has a full month of payments at all times.

Post # 18
Member
1463 posts
Bumble bee
  • Wedding: March 2015

I would keep it simple by doing the following:

– Deposit your entire paychecks into the joint checking account.
– Set up a monthly automatic transfer each month for your joint savings account and same for your personal checking account, the amounts to depend on what you and your SO decide and what bills need to be paid.

I think you mentioned that you have school debt. My 2 cents that once you’re married, you and your SO should tackle it together and put money down on it just like you do for joint savings. But if you’re not comfortable with that idea, you could have it come out of your personal. I’d also include money for groceries and dining out in the joint checking, again based on what you budget, so there’s no ambiguity as to who pays for what.

Post # 19
Member
1277 posts
Bumble bee
  • Wedding: May 2018

Have you used mint? That’s a pretty good program that keeps track of spending automatically. Once you figure out how much is spent on shared expenses, you can figure out what amount should be automatically sent to the joint.

You having debt is something you and your SO will have to talk about. There’s no right or wrong answer on whether he needs to help out (by paying a higher portion of the bills) or not (it just comes out of what money is left with you after paying the bills).

Post # 21
Member
98 posts
Worker bee
  • Wedding: May 2014

Our harder to access emergency fund is with Ally Bank and it’s basically an online savings account. It can take up to three business days for transfer of funds from Ally to our regular account (Chase). We keep our emergency fund there because it yields 1.25% annually. It’s not really hard to get our money, but it’s not like I can stop at the ATM and have that money in hand immediately. In theory that money is only ever to be used for long term job loss or serious medical issues. We would have had to exhaust all other funds/assets to use it. 

Post # 22
Member
6441 posts
Bee Keeper

kmmq72 :  

My work and my husband’s work has a choice where you can choose how much your paycheck goes into what account you set it up to be direct deposited into, which would be great if we wanted to do the below option.

For example if my husband and I had one joint account and two separate personal account we’d probably have it set up like this:

75% of our checks go into joint account.
25% each go into separate personal accounts.

The joint would be all of the household expenses, utilities, car insurance etc, groceries.

The separate personal accounts would be related to things like game costs, clothes for myself etc.

However, this is not something we set up, instead he closed his accounts and we added him onto my accounts. So everything is drawn out of one account.

Post # 23
Member
1006 posts
Bumble bee
  • Wedding: March 2017

I calculate monthly what expenses we will have, which usually stay about the same. Both of our paychecks are direct deposited into the main checking account. This includes every bill we have, even if it’s a personal CC or loan.  I then move whatever we set aside for savings for that month into the savings account.

We each get the same amount of spending cash each month. Usually I just pull this out of the atm and then put it into my separate spending account. I know there are easier ways than doing that other than physically, but I haven’t gotten around to doing it. While the amount is usually the same, sometimes it varies so this is why I haven’t set it up direct deposit through my work.

Post # 24
Member
1888 posts
Buzzing bee
  • Wedding: July 2012

I didn’t read any of the other comments yet, but we have this same exact system and it’s worked fairly well over the past 6 years. 

I have a few personal bank accounts, he has a few personal bank accounts, then we have a couple joint savings accounts and one joint checking. We are each paid via direct deposit into our personal checking accounts. (For ease, all of our accounts- joint and separate- are through the same bank.) Each month, he sits down with all the bills and tracks the amounts in our google spreadsheet. We also keep track throughout the month through the spreadsheet what we purchase for the house/baby that is to be split. (Another option is to just get a joint credit card so that you can just split the bill for that.) Then as he’s cutting all the checks for the bills (yes, he still uses checks, no auto-bill-pay), he tells me how much to contribute that month, and then I transfer it into our joint checking and he does the same. It’s always around the same amount. If we have a gift-giving event coming up, we’ll each put more in the checking account that month so we can write a check. We also contribute to our joint savings with goals in mind, so we’ll decide “hey we want to replace our fence in May, let’s each put $500 each month in the savings account”, etc. We also have similar incomes, so we just do everything 50/50. (Also of note- our only debt is our mortgage which is joint, so I have no advice for that. Sorry!)

I hope that made sense! The once-a-month transfers seem to work really well for us, so that’s what I’d suggest if you can!

Post # 25
Member
1009 posts
Bumble bee

kmmq72 :  I will tell you what we do. Darling Husband and I make pretty much the same amount, so wè do everything 50/50. 1-2 weeks before the mortgage payment comes out, we take a look at what we owe for bills, on the credit card, Etc and that’s how we figure out how much to move to our joint account. For savings, we usually just come up with a number we both agree with to put towards our joint savings. Darling Husband keeps track of all the bills and everything in an Excel spreadsheet, so he usually handles all of that and tells me how much I owe.

We recently moved our account so that they were all at the same bank, but before I used to be at a different bank and I would write a check. Now we can just transfer since it’s all at one Bank.

Post # 26
Member
9606 posts
Buzzing Beekeeper
  • Wedding: July 2016

I can’t answer most of your questions, since I don’t have the same setup.. but I do have a few separate accounts (as does DH). I can tell you you never need to drive to the bank to do any sort of manual transfers.. You both should see your respective accounts and your joint account, no problem. Even if you don’t use the same bank, most banks now let you link to external accounts, though you don’t have quite as much functionality (but something as simple as transferring money is still super easy). I’d recommend moving to the same account–I went from Wells Fargo to Chase, so that our joint account and my personal account would be all in the same place (the sign up bonus at Chase and the Wells Fargo scandal which were both unfolding right then helped make my decision, lol).  It’s nice to have all our liquid accounts in one place.

(We do our investing elsewhere)

ETA: also, you may want to schedule a meeting with a banker to open your joint account.  They’ve seen it all and can tell you how other clients do it, to give you ideas.  They probably have an opinion..

Post # 27
Member
8813 posts
Buzzing Beekeeper

kmmq72 :  “not keen on using *our* money to pay MY student loans.” — I had no problem counting my student loans as a joint expense. The education they paid for allowed me to get better, higher-paying jobs that my husband and I both benefit from. If there’s a chance you’re going to be earning more because of the degree, and you’ll be contributing more to the family finances because of it, I wouldn’t be too quick to put those in the “personal” column. 

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