Budgeting for couples
Managing finances as a couple is critical to building a successful life together. Budgeting lets you plan and track your money and collectively steer your financial journey towards your desired bigger goals.
There are simple steps you can take to make couple-budgeting as smooth as possible.
Discuss your future
In budgeting and everything, open communication is essential in a couple. You have to consider your priorities as individuals and as a couple. Think about where you see yourselves together in 5 years times. This will help you identify your long-term goals, which usually require most financial planning, such as owning a home together.
List and evaluate all your combined income and expenses
Your income and expenses are two key elements collectively shaping the road to achieving your couple goals.
Start by outlining all the anticipated earnings you and your partner earn monthly. This could be your salary, rental income, bonuses, investments or any proceeds from your side hustle. It’s not just about income. We all have expenses to account for!
List the everyday costs you and your partner have. Common expenses are groceries, health care, insurance, debt payments, leisure, fuel and other annual costs such as car service. A holistic view of your costs will let you see where most of your money is spent and readapt your budgeting accordingly.
Though some expenses such as fuel and food are inevitable, you can identify specific areas, such as leisure, with stricter expenditure limits. For example, instead of going on weekly dinner dates, you can set one dinner every month and cook a meal together for the rest of the weekends. A part of the challenge is to find new ways of retaining the same level of enjoyment while saving more money.
Set a budget you can stick to
After you identify your income and expenses, it is time to create a joint budget. Here are some tips to make your couple budget as efficient as possible:
There are simple steps you can take to make couple-budgeting as smooth as possible.
Discuss your future
In budgeting and everything, open communication is essential in a couple. You have to consider your priorities as individuals and as a couple. Think about where you see yourselves together in 5 years times. This will help you identify your long-term goals, which usually require most financial planning, such as owning a home together.
List and evaluate all your combined income and expenses
Your income and expenses are two key elements collectively shaping the road to achieving your couple goals.
Start by outlining all the anticipated earnings you and your partner earn monthly. This could be your salary, rental income, bonuses, investments or any proceeds from your side hustle. It’s not just about income. We all have expenses to account for!
List the everyday costs you and your partner have. Common expenses are groceries, health care, insurance, debt payments, leisure, fuel and other annual costs such as car service. A holistic view of your costs will let you see where most of your money is spent and readapt your budgeting accordingly.
Though some expenses such as fuel and food are inevitable, you can identify specific areas, such as leisure, with stricter expenditure limits. For example, instead of going on weekly dinner dates, you can set one dinner every month and cook a meal together for the rest of the weekends. A part of the challenge is to find new ways of retaining the same level of enjoyment while saving more money.
Set a budget you can stick to
After you identify your income and expenses, it is time to create a joint budget. Here are some tips to make your couple budget as efficient as possible:
Be realistic. It’s good to be ambitious but not overly ambitious. If you set a budget that you cannot commit to, chances are that your efforts are ineffective. Set a budget you and your partner are confident of adhering to and adapt it regularly until you arrive at the optimal state suited to your lifestyle.
Set an emergency fund. Unforeseen emergencies cause stress even when you’re in a couple. These could be health-related, car repairs, urgent home refurbishments and much more. Your budget should include a specific fund to be prepared in case such an event occurs. It’s better to be safe than sorry.
Budget for fun. Yes, you heard that right! Budgeting isn't just about paying bills and saving for the future. Allocate a portion of your income for fun and entertainment. This way, you won't feel guilty about spending on things you enjoy and can keep your saving game strong.