Couples who disagree about money at least once a week are 30 percent more likely to divorce than couples who only disagree just a few times a month, according to a study from Utah State University. But if the wedding bells have stopped and all you hear is the bickering over the bills, it doesn’t mean you’re on the road to Splitsville. We have a financial plan you both can live with.
Make a Budget
It’s hard to find financial bliss when you have no idea what you’re spending each month. Dig out two or three month’s worth of bills and figure out what you spend on your rent or mortgage, groceries, utilities and other fixed expenses like student loans and car maintenance. Factor in an emergency fund for unforeseeable events like an accident, home repair or layoff.
An app like Check (formerly Pageonce) keeps everything you’re spending in one place, shows you where your money is going and even lets you pay bills right from the app. Other apps like Spendee gives you activity alerts of what you’re spending and graphs to see where your money is going and how much you’re earning.
Divide and Conquer
There are a few ways you can decide how to fund your budget. If you have one joint account, simply allot the appropriate amount toward your bills and savings, and use anything left for recreation or extra savings. An app like Splitwise can help you split expenses with your partner.
But if you’re not quite ready to go all in with your partner in one account, keep two separate accounts and one joint account. The joint account can be funded in two ways:
- With an equal dollar amount from each spouse
- Or, if there’s a discrepancy between your salaries, figure out what percentage of your pay each of you needs to contribute to cover your bills. Let’s say you make $80,000, but your partner makes $40,000. Consider contributing 30 percent of your incomes and putting it into your joint account to cover the bills. It’s not a bad idea to give the lower-earning partner a little break—30 percent of $40,000 is going to feel more drastic than it would for the person earning $80,000.
Get a Joint Credit Card
Get a joint credit card with a cash-back rewards program, and use it exclusively to fund your recreation and evenings out. Divide the bill evenly or use a percentage of your income to go toward the card. This way, no one can debate who paid for what last time you went to the movies. The money is all accounted for in one place and the cash rewards can be put toward savings.
Discuss an Emergency Plan
Hopefully you set up an emergency fund when you made your budget. But what happens during a true emergency? Discuss who will take over the bills if someone gets sick or laid off. Figure out ways you’ll stay afloat, such as taking in a renter to getting rid of the cars and taking the bus. For more great financial planning resources, check out the J.G. Wentworth page on FaceBook. You’ll get tips on everything from budgeting to selling annuities and more.