There are advantages and disadvantages to combined finances. How should the economy be divided so that there are clean lines and no sour mines?
Economy is almost always a tender topic in the relationship. The problem can become more challenging if your income is very different. Read here how you can possibly find a common solution.
Share your income
First of all, it is important to agree on how you want to share your income. It is important that you talk together about how your common economy should function if you want one, as it can be done in different ways:
- 100% Common Economy, where all your money is put into one pool.
- You pay half of all your joint expenses and keep the rest of your income for your own consumption.
- You share your common expenses in relation to your income, so the one who earns the most also pays the most.
According to experts, there are pros and cons of all 3 models.
It is up to the individual couple to find out what suits you best and what suits you best in your relationship.
The most important thing is that you agree on how your finances should be managed.
If one of you has expensive habits while the other wants to save, the economy can easily become a point of contention.
If you have been a couple for a long time, you may have found a way in which 100% common economy works without acidic mines.
Unfortunately, few people can fully agree.
Unfortunately, there are also many who seem to be working fine, even though there is a deep dissatisfaction with the distribution.
This is also often the source of unrest in a relationship. It can be an advantage to be able to spend your own money on something that is appreciated, without the boyfriend having to consider whether it is a reasonable expense.
If you are going to consider whether you should have a shared economy, first talk about your expectations and different situations you may face. What to do when one has spent a lot of money on something that the other thinks was unnecessary?
Do you ask about law before buying? Are there any amount limits? Whichever model works best for you, it is important that you talk it through properly BEFORE you begin.
Who earns the most?
Some would probably think that when you have chosen to live and live life together, you should also share the economy.
It’s a way of seeing the world, but you can also choose that when you have each of your income, the expenses are split.
Part of the income must go towards joint expenses. What is left will then be your own portion, for your own consumption. So you spend your money as you want and your partner uses his.
If you want to share your common profits, you can too.
For example, if your partner is paid more than USD 3,000 more than you, you can choose to pay a larger part of the joint expenses.
You can also share your common profits after paying the expenses. That way you will receive just as much “in pocket money”, no matter what you may each earn.
The most important thing is that it is quite clear how your finances are to be divided.
Here you can save
Saving is always good. And if you are new to your relationship or in any case new to the stage where the economy is to be divided, new opportunities will also come. Here are a few things that will be merged into one expense when moving together:
- When you get a common address, you can settle for one home insurance. On the other hand, you must continue to have your accident insurance, as it is linked to the individual and not to the household. If you have previously had each insurance company, consider switching all insurance policies to the same company. Typically, there may be money to be saved by gathering insurance policies in one place.
- One license. You don’t have to have each of you.
- One TV, one Netflix, one Internet connection, etc .. If one of you has special benefits through your work, both parties may benefit from them.
There are many more good saving places. Maybe you can find your own.
The moral of the story is: Talk about it.
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