Financially, life as a couple can be very complex. Managing a couple’s budget can be a source of disagreement and constant quarrels for many. Others just prefer not to talk about it. However, a mistake that can cost you dearly.
This is why it is important to define a few simple rules and immediately carry out correct financial planning.
What and how much is the net revenue?
One of the first steps to take when it comes to managing money as a couple is to estimate the net income you have available. Any bills, mortgage installments or loans or other fixed expenses will be deducted from the cumulative figure.
If you don’t have a regular salary it is preferable to take an average of the last three salaries.
This way you will have a clear idea of how much your family is earning right now.
How much do you really spend?
One of the questions we ask ourselves most often at the end of the month is “How did I spend so much?”. Sometimes it happens that we do not have a real understanding of the money we are spending. To start saving and managing your couple’s budget wisely, we need to know how much money we’re spending in every area, from groceries to bills, from doctors to shopping.
Some expenses will be essential, while others will not. There are several web applications out there that help manage family expenses (Splitwise, Mint Personal Finance, Monefy, Tricount, Settle up, etc.) and monitor them over time.
You will thus have a clear and precise idea of the money spent each month for any category and you will know where to act if necessary.
One of the most commonly used savings methods is the 50/30/20 rule, which involves dividing your monthly income into three categories: 50% for necessities, 30% for recreation, and 20% for savings goals or repay any debts.
What are your medium and long-term goals?
It is important to always define what your medium to long-term goals are. Whether it’s buying a house, planning a vacation, buying furniture, the important thing is to agree on goals together taking into account the available budget. This will help you save money, keep your expenses under control, but also help you grow as a couple.
Open a joint account
Both of you will surely already have a personal account. One of the ways to be able to manage your budget more carefully is to open a joint account, into which you pay a fair amount each month. The advice is to divide the common expenses in half. The contribution to be paid must in any case be established together, on the basis of specific family needs.
All the couple’s expenses can be made from the joint account, which can be monitored by both over time, while the respective individual accounts will be used for personal expenses.
Create an emergency fund for the unexpected
Life events are unpredictable. The loss of a job, an illness can radically change your life. That’s why you need to create an emergency fund to draw from in case of unexpected events. In this way you will be able to face the uncertainties of everyday life with more serenity.