There is no secret recipe for couple finances to work. What is a fact is that finances must begin to be seen as a team in search of common goods? If you are not sure that both of you are looking for the same thing then finance is not really the problem but the compatibility between the two.
The dynamics of couples is not the same as that of 20 years ago. Equity roles are gaining strength, also in finance. The idea was that the man was the provider while the woman stayed at home as an administrator. The wonder of the modernization of roles is that they can be reversed or both can have the role of providers and administrators.
Shared budget
Perhaps for the same reason, couples usually retain some financial independence. Although they contribute equally, or that is expected, they still have savings or investment accounts separately. What is recommended is to maintain a common budget. So we have tips so they can create a shared budget.
1. Pretend they earn less money
Make a sum of both income, in case both work. Subtract 30% of the total and now you can make use of that 30% in savings and investment. The rest can use it for other budget items such as rent, mortgage payment, food expenses, transportation, etc.
2. Follow up
They should sit down every month to review how the plan is going and make sure that the money has been spent and set aside as agreed. It is recommended to review the statements of account and that they agree with what has been spent, but mainly that there are no financial infidelities and there is open communication.
3. Personal expenses
They should be considered in the budget, they come from outings, clothing purchases or celebrations. In order for the budget to be sufficiently controlled, it is recommended to use a third of that 30% that has been set aside. Both will give different uses to that personal percentage. It is understandable that they have independent expenses and needs as a couple.
4. Savings
Of the 30% set aside, 10% can be directed to saving in pairs for common purposes. It can be buying a house, buying a car or even going on vacation. Savings for emergency expenses should also be considered. It is recommended that in the end, you have saved around the equivalent of 6 months of expenses, that in case of any loss of employment or emergency. Opt for formal savings options always.
5. Investment
Finally, the other third of 30% should be used to grow money. To have good returns you must have patience and let the money grow without removing it from the investment tools. Both should talk about which option is best for both. But mainly it is important that you do not deposit all the money to invest in a single option.
