When a couple comes together in one household, many adjustments must be made to ensure a harmonious partnership. One of the most challenging aspects to handle is the budget and joining of bank accounts. However, if you join yourselves economically, aware of the common mistakes couples make, you can avoid them. Should you combine your incomes?
One of the two takes the economic burden
Generally, when couples start planning the combined household economics, they go one of two ways. The couple will combine their incomes into one account or have separate accounts and split the expenses 50/50.
When one person in the couple feels the entire economic burden on their shoulders, the uneven division of the expenses can cause tensions to arise. Unless it is agreed upon, one person should not shoulder all of the economic burdens.
How can you resolve the problem? To make an equitable distribution of the bills, the first thing is to know where the money is going. To gain this knowledge, it will be essential that, as a couple, a budget should be created. The budget will help the couple understand the economic needs of the household and will allow them to develop a fair plan for both partners.
Your way of spending affects your partner
Often, when we are single, we have a way of paying our bills or handling the income that works for us. However, when we come together as a couple and the income is combined, there can be vast differences in how each partner handles money and budgeting.
In some cases, this can be an issue in the relationship. If one partner is great with money and sticking to a budget and the other is frivolous, it can cause stress to the partner that is better with money. This stress can also put a strain on the relationship and, in some cases, end it. Most couples will say that they argue most about money.
How can you resolve the problem? Despite differences in how money is handled, both partners need to communicate and find common ground in handling money. It will be a compromise expected of both partners in the relationship. Like any other relationship issue, compromise is vital to a healthy relationship and positive economic status as a couple.
Many unforeseen issues can arise economically. There are so many economic contingencies that are not planned or folded into the budget. If you are not prepared for these contingencies as a couple, it can cause a disastrous amount of stress and worry.
How can you resolve this problem? The answer to this question is simple. You must have an emergency fund. How much you put into the fund will depend on how much you can save and what you want to be prepared to face.
Some will have the recommended $1000 emergency fund, while others prepare for more significant issues such as unemployment or other loss of income. In those cases, it is recommended that a couple save 3 to 6 months of each income. While there is no way to prepare for unexpected economic strains, having an emergency fund will give you peace of mind.
Wasteful Vs. Thrifty
In many cases, one person in the couple is wasteful, and the other is thrifty. This difference in handling your budget can be difficult depending on how far apart you both are on how you spend money or handle the household budget.
How can you resolve the problem? An excellent way to deal with the disparity of vision about some couples’ expenses is to establish common saving goals. These goals could be saving for a trip, buying a car, or having a baby. No matter the mutual goals, it is crucial that you agree on the budget that will keep both partners happy and able to stick to it.
Talking once about money is not enough
When you come together as a couple, household economics should be discussed immediately. However, communication about money can be uncomfortable, causing one or both partners to avoid the discussion. This avoidance can cause strain on the relationship and economic stress.
How can you resolve the problem? Regular, even daily discussions of household economics can avoid economic disasters and stress over money. The most important thing is that there be regular communication about to avoid.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.