*Disclaimer: Only do the following process described hereafter if you are married or you have utmost trust in your partner as it can be very dangerous to put your assets at risk from being nixed by un-trustworthy and unsavory entities
Have you ever thought about how weird it is to share money with your spouse or living partner? Does it always seem like one of you is always spending money? Well boy do we have the solution that may or may not solve that or it could just act as a good strategy even if you both have a good standing on your personal finances. Just as you need personal space in a relationship you also need personal finance but you also should be giving each other personal finance ability. Intimacy shouldn’t just be in the bedroom it should be based on your future as well which can be steadily built on money. Listen, I am not here to tell you how to manage a relationship but I am here to help you with finances and trust me, this one might save you a lot of headache and tough decisions.
As you can see in the diagram (Sorry it is so crude but at least you know it is authentic) the process will still be quite involved by both partners. Let me guide you through this in steps.
Step 1: Make Some Money
Pretty obvious that both or one of you have to make money that gets put into this bucket. Now, here is the part that isn’t so obvious, no matter what source the income is from it should go into this pool(besides personal gifts). It is important that you don’t hide any income sources from another partner or retain extra earnings because you, “worked hard” or you “had to stay late”. All of your income should be pulled together.
Step 2: Make sure you have The Proper Tools
For this step you wanna make sure you have 3 checking accounts minimum, 1 savings account or investment account and all accounts are linked. You want these tools to make sure you can properly transfer all funds through the correct mediums.
Step 3: Joint Bank Account
Here is where we get our hands dirty. You want to make sure before your monetary funds get touched by subscriptions, entertainment or any other expense that they get deposited into a joint bank account. This bank account will be used 1.) to properly pay all bills and expenses regardless of what they are. 2.)Groceries and finally 3.)your investments or savings account along with any rainy day funds.
Step 4: Allocating budgeting funds
Now here comes the tricky part. Pending what your savings or investment goal is, will decide how much you allocate for both partners. This makes it even easier to determine as a couple how much you need to save for your goals because now you have to work as a team to attain goals and both of you responsible for all bills not just your collective. It truly is a beautiful process given you by yours truly ;). Now here is the twist, you split the difference after all funds are invested. One person doesn’t get more than the other because they make more or they bring in more income. This can help solve a lot of problems and it really can make you appreciate things more. For instance, if you buy your wife something it is no longer just a, “hey, I make a lot of money and so I am gonna take you out!” Also, neither partner should feel lesser because they contribute less to date night. There is a million benefits for your relationship!
Bonus Step: Collective Accounts and Net Income
So how does it get more intimate? Simple, make all available monetary asset accounts available to your partner or simply make it so that you can login to each others accounts so that you can see their credit cards and charges. I know, I know where is the privacy? Well this isn’t about constantly checking up on your partner to make sure they are not buying escorts and partaking in nefarious drug activities. It is about being able to see how close you are as a family to reaching your goals. An accountant calls it a balance sheet, but you should make a net worth calculator for your family. It might seem cold putting a number on your family that represents their monetary value but think of it more like a goal tracker. The closer you are to your goals the better. It should inspire you but not drive you mad. It should bring you comfort but not laziness. It should bring calmness not hostility. Remember you are a team! Anyways enough of the soppy stuff I hope you and your loved ones kill it this year and implement this strategy if it fits your lifestyle! Happy Tuesday!