How to Manage Finances as a Married Couple
Do we combine all of our monthly income? Do we keep separate bank accounts? Who earns more? Who pays for what? How do we ensure we have an emergency fund for rainy days? How do we attain our financial goals and financial security?
As discussed in our previous blog, “Finance in Marriage: Understanding the Top Money-Related Issues That Lead to Divorce”, money can be a common source of marital issues.
Lottie Leefe, Founder of The Dura Society, emphasised that financial problems between spouses "aren’t even about the numbers but about control and expression, dreams, and desires."
This is why harmonious money management and open communication are vital.
We believe it’s crucial for us to establish and agree on a money management framework to avoid misalignment and mismanagement, which can cause friction in marriages.
This blog shares how we handle money management as a married couple.
Maintaining a Joint Bank Account
Couples often manage their finances in one of three ways:
Maintaining separate bank accounts;
Maintaining separate accounts and a joint bank account; and
Maintaining only a single joint account.
For some couples, keeping their money separate offers independence. Others prefer the organisation of joint accounts alongside personal ones.
Pooling all our income in one bank account signifies unity and trust. However, it can sometimes lead to tension and disagreements over differences in our spending habits.
Despite potential drawbacks, we believe a joint account strengthens our bond and simplifies financial management. Read more here to find out why we prefer this money-handling method.
Conducting Regular Budget Meetings
Small impulse purchases can accumulate and create larger issues, so it's important to communicate constantly about our spending habits.
For us, effectively managing finances as a married couple involves regular meetings to review our budget and discuss how to meet our needs and desires without deviating from our set budget.
We understand that each of us has different money language profiles and money management styles, so we try to complement each other's approaches.
Keep reading here to learn more about how we strive to strike the balance of saving money for our future while enjoying the pleasantries of life.
Practising Simplicity by Automation
Managing our finances as a married couple is simplified through automation.
By using standing orders and direct debits, we effortlessly move our income into an expense account, savings account, and investment account.
Automation gives us peace of mind because it allows us to ensure we have enough money for our savings and investments. It guarantees our bills are paid on time without requiring manual intervention. Further, it helps us avoid fees for late payments.
This approach offers us a sense of security while allowing us to save money for our long-term goals, including our children's milestones.
With careful planning and the help of automation, we aim to build a solid financial foundation for our family's future.
Read more about our strategy for managing our money wisely here.
Allocating Weekly Individual Budgets Equally
We prioritise promoting and maintaining mutual respect, equality, and harmony in managing our joint finances.
It doesn't matter how much each of us brings to the table every month.
We allocate a portion of our income to our individual accounts weekly, equally for personal spending.
This approach grants us the freedom to make purchases without constant consultation. It also fosters a sense of equality in our relationship.
By adhering to our weekly budgets, we avoid overspending and maintain financial discipline effectively.
Learn more about how we set aside funds for personal spending here.
The Bottomline
There’s no right or wrong answer regarding managing money, paying bills and debt, and building and achieving savings goals as a couple.
As we always say, the key is good, honest, and open communication between spouses.
Our approach may or may not work for others. How you and your partner manage your money may not work for us.
The best way to avoid financial woes is always to discuss your finances with an open mind and ensure you’re on the same page with your spouse.
How do you handle your joint and personal finances? How do you and your partner ensure all your living costs are met? We'd love to hear your thoughts on this controversial subject, so feel free to leave a comment below!
If you want to learn how we create a budget for our family, you can download a FREE copy of our budget planner template by signing up here!
Make sure you never miss the latest updates from us, so subscribe to our newsletter and YouTube channel.
You can also follow us online!
