No matter how many articles you’ve read, creating a budget as a couple is not an easy task. Are you and your partner ready for this process? Here are some tips to help you get started.
Phase One: Getting More Serious
If you are your partner are entering more serious territory, it’s time to talk about money.
1. Start slow.
Talking about money should be a slow, gradual process. Discuss your relationships with money, your habits, your short and long term goals, and such. Get to know each other, and try to make it enjoyable.
2. Get the difficult hard confessions out of the way.
It’s not easy to admit having massive student loan or credit card debt, but these things can’t be concealed forever. It’s best to discuss them sooner rather than later.
3. Keep an open mind.
Try not to judge your partner. Be open and receptive to their thoughts and opinions.
Phase Two: Cohabitation
Have you been talking about getting engaged or living together? If so, then it’s time to talk numbers.
1. Discuss how you’ll split rent and bills.
If you’re apartment hunting, then it’s time to create a budget. Decide on the highest and lowest amounts you’re willing to pay for rent. How much are both of you comfortable paying? How do you want to split and utilities?
2. Before you sign a lease, discuss finances.
Ask your partner if they have debt, and be willing to answer the same question. Ask about collections, credit scores, and savings. You don’t want to apply for an apartment together only to realize that your partner’s credit score is too low to pass.
3. Pay your bills together.
Once you move in together, pay your rent and utilities together. This is a great way to begin regular money dates that should happen if you ever combine your finances.
Phase Three: Committed
Are you married, engaged, or officially unofficially committed to each other for life? If so, it’s time to get serious.
1. Decide how you want to handle your money together.
Here are a few ways to approach combining (or not combining) your accounts.
All joint accounts.
All separate accounts.
Joint accounts and separate accounts.
There’s no right or wrong answer to this decision. Just remember that you still need to be on the same page in your finances, even if your accounts aren’t combined.
2. Outline your common goals.
Here are a few common goals to decide on together:
Emergency fund.
Debt payoff.
Retirement savings.
Wishlist items such as a home, car, annual vacations.
Then you’ll want to create a budget to follow.
3. Try a budget app for couples.
If you and your partner are already on your phones constantly why not use that to help with budgeting? Budget apps for couples can be a great tool to help. Some great examples are Mint and YNAB.
