5 Secret Money Management Tips for Couples (2024)

FAQs

5 Secret Money Management Tips for Couples? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

Couples should list all the household expenses, including fixed costs and an average for the variable costs, then split those costs according to income and deposit their allotted amounts monthly in a joint account, said Curtis.

Arguably, the most popular percentage-based method is the 50/30/20 rule from the book All Your Worth: The Ultimate Lifetime Money Plan. Using this method, you need to allocate: 50 per cent for needs (fixed costs like rent, utilities and debt) 20 per cent for savings (emergency fund, retirement and insurance)

The easiest setup is to have a joint account that both fund to pay shared expenses. Then each partner can have separate accounts to pay for individual assets. Both partners share the financial burden of day-to-day expenses while maintaining financial independence.

Personal finance expert Dave Ramsey says if you're going through a tough financial period, you should budget for the “Four Walls” first above anything else. In a series of tweets, Ramsey suggested budgeting for food, utilities, shelter and transportation — in that specific order.

You just take the exact amount of cash you've budgeted for each category and stick it in individual envelopes. Then throughout the month, you check your envelopes to see what's left to spend—because you'll see the literal amount in cash.

By age 50, you'll want to have around six times your salary saved. If you're behind on saving in your 40s and 50s, aim to pay down your debt to free up funds each month. Also, be sure to take advantage of retirement plans and high-interest savings accounts.

If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary. Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.

Who should pay the bills in a relationship? ›

Some may take turns, share the bill, or follow the rule that whoever requests pays. Couples may decide to split expenditures equally, move in together, or even combine their savings as their relationship progresses. It is entirely up to the pair and how they wish to handle money in their relationship.

Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases. It does not necessarily involve marital infidelity, though it can lead to divorce.

But don't think “money talk” isn't dating material. Talking about money — early and often — is better for your relationship (and just plain better for women). According to research, more couples who talk about money every week say they're happy compared to couples who talk about money less.

Split bills by income

Consequently, many opt to split bills proportionally according to each person's income. For example, if Person A makes $6,000 per month, and Person B makes $4,000 per month, their total income is $10,000. Person A earns 60% of that, while Person B brings in 40%.

Money worries can cause stress within a relationship, but talking openly and using budgeting tools and strategies can help you get on top of things. Speaking to a therapist or other health professional either as a couple or individually can help manage feelings of anxiety and stress.

The study reveals that couples who merge their finances enjoy a protective effect that safeguards against the decline in relationship quality over time. “We were motivated by the conflicting advice that's often given to newlyweds,” explains Jenny Olson of Indiana University, the lead author of the study.

Once upon a time, such spending was a huge, homewrecker of an issue for us. But in September of 2010, my husband, Chris, and I adopted an allowance system. Ever since, we've granted each other $500 a month to spend however we want, no questions asked. And this is how we're still married.

Key takeaways. Keeping separate bank accounts after marriage could help you stay engaged with your money. Paying for shared expenses could mean using bill-splitting apps and extra planning for emergencies, but it's worth it for some couples.