Post # 1
So now that I’ve had a “big girl” job interview that went well, and it looks like I’ll get the job (cross your fingers!), and we also know where we’ll be living after the wedding, Fiance and I finally have an idea of what our household income and expenses will be. For the past couple days, I’ve been working up a budget and a plan for how we’ll contribute to the household.
It is important for us to share finances, while still having separate “fun” money. It was especially important to me for us to contribute proportionately. It wouldn’t make sense for us to both contribute half of all the bills when he makes 75% of our household income.
So here’s the plan I came up with: I figured out what all our expenses would be, including individual credit cards, student loans, cell phones, etc. Basically ALL our bills, plus money for groceries and gas. I also included the money we contribute to a high yield savings account every month. What’s not in accounted for is haircuts, drinks with friends, gifts for each other, that sort of thing.
So after I came up with that number, I figured out what 75% and 25% of the total is. The plan is for Fiance to contribute 75% to our joint account for our monthly expenses since he makes 75% of our combined income. I’ll contribute 25% since I will make 25% of our combined income.
Then, whatever is left over is our personal money. I felt like this was a fair way to do it, although my left over will only be about $200 each month! Fiance assured me that he will still pay for treats like weekend getaways and date nights out of his personal money because his will be significantly more.
Still, I wonder if this is the best way to to do it? Does anyone else divide their money proportionally like we plan to? How has it worked for you?
Post # 3
Omg that sounds so complicated to me lol! Me and Fiance agreed to put in 50% of our paychecks in our joint account to pay for all home/bill related stuff and the other 50% for us to do whatever we wanted
Post # 4
I think that is a good idea. I have heard of that way of doing it before and it makes a lot of sense. Are you including retirement savings in those numbers? Since you are both young, you should be trying to contribute as much as you can to a retirement account since time is the greatest way to grow your retirement money.
My husband and I have a joint account and an allowance that we can spend on fun stuff before asking eachother. Right now that is sort of on hold because I’m unemployed though.
Post # 5
Right now my Fiance makes a lot more than I do because he works full-time and I work part-time (I’m in school!). I used to make enough to support myself, but they cut my wages at work and things started getting tight. We decided to just put our money all together and make a budget from that. It was honestly a way easier transition than we thought, and we just look at it now as “our money” rather than my vs. your money. However, we have been talking lately and decided that to avoid the guilt that we both feel when we spend money on stuff, we’re going to start giving ourselves each an equal allowance from our money every week to spend on ourselves. So if he wants a video game, he will have to take from his own allowance. If I want to go out for lunch instead of bring one, same deal.
I know that a lot of people keep their money separate to avoid fights etc. but I really feel like this worked best for us. It makes us feel more equal about money. Good luck I know it’s stressful to figure it all out!
Post # 6
Yes, I agree with @JennyChicago. My Fiance and I are planning to combine 50% of our income when we move in together. It just seemed more fair that it’s proportional. We also talked about much each of us could contribute for a down payment on a house and our savings plan for the future.
I think that it’s great that you are talking about it openly and trying to make it clear – good job!
Post # 7
I think everyone does it differently, as long as you’re both happy with your way. Besides, it’s not written in stone right? If you decide you feel stretched every month you can always talk to your hubby and make a different arrangement right? These things are fluid, circumstances change! 🙂 Good luck with your financial planning!
Post # 8
Thats way too complicated for me. What happened to a simple joint checking?
Post # 9
that seems sort of complicated to me and somewhat contrived. the way we see it is we’re a team 100%. we soar together and sink together. what’s his is mine and what’s mine is his. So to that end we put all our money in one account. We both recognize that we work hard and should feel comfortable spending money on things that only benefit one person. So if FH wants to go out for drinks, I have no problem with him using OUR money because he deserves it as much as I do and I trust him to spend responsibly. We just agreed to clear large purchases with each other.
Also, purely mathematically speaking this makes the most sense. If we had personal accounts and i ran out of money in mine, he would have to pay more for our fun stuff anyways so why bother putting up the artificial barriers.
I just think that a marriage is about being one and sharing everything….so why draw the line at money?
Post # 10
I am with the joint account. In the end, both of you are contributing (however much it may be) to the household. Use credit cards for gifts and whatnot.. but why not just combine everything? It sounds simpler than 75/25
Post # 11
I think that could work doing exact percentages. Is it Suzy Orman who recommends that?
We do it a bit differently in that we each get the same amount each month for “fun” money. Fun money is things that aren’t budgeted (lunches out, hair or nails, new clothes, presents for each other). The rest goes into paying all the bills (cell phones, child care, car ins., etc), and into two savings (an “emergency” fund and regular savings). Part of our budget includes a joint “entertainment” fund. This works for us.
As the person who make so much more in teh realtionship, I think I’d feel guilty if I had more “fun” money. I know me, I would shop constantly. I would feel bad coming home and SO not being able to do so. Also, in theory, if we’re giving in percentages based on earnings, theoretically we should end up with closely the same “fun” money anyway, right? Or maybe it’s just me. Math was never one of my good subjects. lol
Post # 12
@CurlyDreamer: Yes, Suze Orman does recommend percentages based on the amount that you make instead of splitting bills 50/50.
Post # 13
I have heard of a lot of people doing finances this way. Where they do not put all of their money in one account and just pay for everything out of one account. I guess I assumed when I got married that is what we would do. But maybe it’s not the “thing” anymore. I dont know. We do not know where we will be job wise after we get married, so we haven’t really figured out how we are doing money stuff. But I think your plan sounds like it will work well and your husband doesn’t sound upset by having to pay for more. He sounds wonderful!!
Post # 14
There’s a bit of a discrepancy in our incomes too. We split any joint expenses (rent, food, entertainment, eating out, travel, car etc) 50:50. But then for our savings accounts (car, house, wedding, and emergency funds), I contribute 65% while Fiance contributes 35%. Any money we have left over from that we get to keep and spend for ourselves. We still keep our own savings accounts as well (retirement, and tax free savings accounts). It’s worked out well so far. We’ve decided to reassess our conributions yearly (based on raises and bonuses) to see if we need to change any of our numbers.
Post # 15
I guess I just don’t get the whole “splitting bills” philosophy for married people. If you are living together but not married it makes sense. But after marriage, it is way easier to put both paychecks into the checking and savings accounts. I know people do what works for them, but I would seriously have a problem with “his” money and “my” money, “his” share of the bills and “my” share, etc. It’s OUR money and it makes no difference to us who has the higher paycheck and who contributes the most to the checking account and we wouldn’t spend a minute of our time trying to do the math around it!
Post # 16
We have a joint checking account and are very open and communicative about how we’re spending our money. We function very strongly as a team, and it never even occurred to us to do separate accounts. That’s what works for us. I hope you find what works for you! 🙂