Combining finances – is this a good method? How do you do it?

posted 1 year ago in Money
  • poll: How do you deal with finances in your relationship?

    Separate finances

    Split all expenses 50-50

    Proportional-to-income contributions

    Everything joint, and every month we each get a certain amount of $ for personal spending

    Everything joint - all household and personal expenses come out of here directly

    Other

  • Post # 31
    Member
    386 posts
    Helper bee
    • Wedding: May 2020

    I am a CPA and live and breath finances and budget. Do whatever you feel is right. I was married previously and we kept absolutely everything completely separate, and it worked for us. He paid certain bills and I paid certain bills. Neither of us had debt and we both maxed out our retirements.

    In my current relationship we completely combined finances and had everything joint after 6 months together right when I moved in. We’re still not married 3 years later (thanks coronavirus!) but this works for us. We make about the same and both max out all retirement options and still save more (we’re both over 40) so we want to retire comfortably.

    There’s no right or wrong answer for what will work in YOUR relationship other than both saving for retirement, that is the biggest advice I give EVERY client!  

     

    Post # 32
    Member
    84 posts
    Worker bee
    • Wedding: April 2020

    View original reply
    bpositive :  This! SO much this!

    Post # 33
    Member
    4015 posts
    Honey bee
    • Wedding: November 2019 - Canada

    We created a joint account solely for the purpose of saving for our wedding & paying joint bills. It kind of evolved into a system that works pretty well.

    Currently:
    Each have our own credit cards, chequing and savings accounts; pay is deposited into chequings and a portion is transferred to our own savings, RRSP’s, TFSA’s
    Joint Savings; I pay a set amount into here each pay (used for home renovations, dinners out, etc.)
    Joint Chequings; I pay a set amount into here each pay (used for all household bills)
    Mortgage comes out of DH’s account and is proportional to what I deposit into our joint savings & chequings accounts.

    Every few months, any extra left in our joint chequing is transferred into the joint savings. All joint purchases go on our credit card or paid out of our joint savings. The joint CC is paid off each month out of our personal accounts.

    This works for us right now, but once we have children we will switch so the majority of our funds are joint and we each have a certain amount deposited into our personal accounts. We will retain our personal credit cards and use those for personal purchases to keep our own credit scores up & active. 

    Post # 34
    Member
    1509 posts
    Bumble bee
    • Wedding: June 2018

    We’re completely joint. We talk about big expenses before we spend. Day to day stuff we just buy what we want and feel comfortable with. There haven’t been any issues. Hasn’t taken the surprise out of gifts since neither of us go through the credit card searching out to see what our spouse has purchased. The vast majority of our expenses- vacations, house repairs, food- are all joint things anyway. 

    Post # 35
    Member
    295 posts
    Helper bee
    • Wedding: October 2017

    After we got married, we combined everything, and opened up joint savings accounts as well.  Everything we make goes into our joint checking account, and then we each receive an allowance that goes into a separate account we each maintain.  I don’t have access to his account and vice verse.  This allows us to make purchases without it coming out of the family budget.  We talk about large purchase jointly before we make them, and all bonuses we get (I get monthly commission, and my husband gets quarterly, we both work in sales) are discussed with how we will spend it save them. 

    I don’t think there is a right or wrong way to do this, but it has to work for both partners.  If you don’t join, what happens if one spouse is out of work?  I’m officially on maternity leave as of today, so my income is changing.  Since we have a joint account , it doesn’t really affect me, but this could become an issue if we didn’t.  

    Post # 36
    Member
    3877 posts
    Honey bee

    We have everything combined…I can’t be bothered doing it any other way. We have had years where only one of us worked, I was the breadwinner, he was the breadwinner, etc. I had/have no desire to completely re-invent the wheel everytime something changes with our jobs. I am also the one who handles all the bills and plans what we can save as well as major projects (all communicated to my husband, of course), so its also much easier for me to do that when I have access to everything. Plus the major things like our house are owned jointly, and would need to be split in the event of a divorce, so I guess I just don’t see the point in making it all more complicated. 

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