Steps to successfully maintaining joint finances with your partner

Are you somewhat of a free-spirit when it comes to spending? Someone, who enjoys buying cheap items that wear out quickly. Meanwhile, your partner prefers to save up and buy something expensive that lasts — and then takes good care of it to ensure that happen.

Couples often discover that they’re financial opposite as they start developing their relationship. You're either born to save or you're born to spend, and financial opposites attract. This can lead to enormous power struggles and trust issues and regular fights over expenditure when households run from a pooled fund.

But it doesn't have to be that way.

So, how do you go from there to successfully combining finances? These basic principles can help you start successfully manage joint finances with your partner.

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Start with the end goal

Start with the big conversations. What do you want retirement to look like? What do you want our lifestyle to be like between now and then? Are you having kids?

Put numbers to everything and came up with workable household budget that will enable you to meet your end goal. To help you review your household budget, you can use our free budgeting tool.

If you happen to be DINKs (dual income, no kids), take advantage of the excess income by estimating what you need for retirement and putting as much as you can afford toward that goal. Then calculate how much you’d need in emergency savings and started building that as well. 

Confirm what’s essentials

Moving in together decreases individual expenditures, so workout budget categories for the new household essentials. The utility bill’s easy enough to agree on however, will Jim’s monthly haircut be deemed essential? What about weekly lunches with friends? 

Once you have worked out what your monthly bill for essentials is likely to be, open a joint   account for all household expenses for both parties to place their contribution into. Then, as the bills come in, pay them from this account.

No need to give up your financial freedom

Keep your individual accounts for ‘buy whatever you want’. A portion of your wage should be directly deposited into these accounts so that you can spend it however you like. For example, if either of you buys a meal when you’re not dining together, it comes from your personal fun money. 

Do the same with a personal savings kitty, it’s a healthier relationship when partners don’t feel trapped or restricted financially.

Be realist about any income disparity

In reality, one member of the relationship is likely to earn more than the other. If you don’t factor this into your budgets, disagreements will arise because one party will feel that they are financially carrying the other.

It would be best if you agreed on a percentage of your wage or dollar value each person will be contributing to the household accounts at the very start. Of course as the wage levels change, so should individuals contribution level.

Revisit regularly

Over the years, you’d most probably have kids and buy a house together, both of which come with plenty of ways to spend money. At least every six months, look at the budget and recalibrate your categories.

Are we overspending on takeouts? Have we finished paying off the kids’ sports gear you bought using afterpay (not advisable as it reduces your borrowing capacity)? You also revisit when you need to make big decisions, like do you put your kids through public or private schooling, or can you afford to do a major renovation to accommodate your growing family!

Don’t forget what matters

You’ll most probably have your fair share of fights about money, but overall, having a joint household finances makes family budgeting much easier. You can also use your family budget reviews as an opportunity to keep a check on you progress towards accomplishing your end goal together. 

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This article does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.