Money and Couple Problems: a Very Delicate Matter

Why do couples argue about money and how to better organize home budget.

Money and personal values can happily go together with your couple life.
Let numbers speak.
Putting money goals together should boost your finances, like a sort of synergy effect (1 + 1 = 3), and in many real situations money and couple problems can be solved with a basic organization and a simple budget.

But which are the basis for happy domestic economy?

Step one: define common expenses

Just sit down together and take pen and paper, or open up an Excel worksheet if you prefer it and type in detail all monthly expenses which may be:

• Rent
• Electricity
• Food

 ..and so on,.. please write down all the expenses in detail even if they are very small..

The goal is to quantify monthly expenses and to determine the exact amount to pay it all.

Step two: how to contribute to common expenses

Image courtesy of [sdmania] / FreeDigitalPhotos.net

To find the formula to contribute to expenses and to organize the bank accounts are the key to solve this money and couple problems.
I've found two methods that seem interesting to me:

1. By giving 50% each. 

This method is very interesting when the two salaries are similar. Each one pays half of everything because each one consumes just half of everything.
I will not advice you to split expenses by two like saying: I pay the rent and you pay food and the rest of invoices.

2. Contributing in proportion to each one salary

If there is a difference of more than $500 between the two salaries, each one should contribute in proportion to the amount he/she makes.
This seems right to me because even if salaries are not similar the individual participation is fair.

Step three: create a common accounting system

Even if it is a very simple thing it is always good to keep track of money flow, when things are clear on paper (or computer screen) things are also clear on each one mind.

A common bank account comes handy to pay monthly expenses, once a contribution method is established.

The principle of paying one self first it also works when you are in couple, and in order to work it out you can set up a simple automatic money transfer system that will feed the individual bank accounts with savings.

Each one should keep and watch his/her individual bank account and so you can offer your loved one a present and it always be a surprise without affecting home economics!

And of course these are not the only systems, if you make $2000 more than your loved one you will want to share it with her (or he) so she can get as much personal money as you.
We are talking about love, not a corporation accounts report, and with love balance and sharing are the keywords.

How to make all this work

Each one could have a personal bank account that receive the salary.
Each month an automatic money transfer will pass the accorded amount to the common bank account which will pay common expenses, feed common saving projects and investments.
Each month you would sit together to check bank movements and correct the necessary things to attain the ideal budget together.

There are many more solutions to money and couple problems, of course, it all depend on you, the way you both like it and agree, all that seems fair to you both.

And so, they lived happily forever and ever by letting numbers speak.