Once we start living with our loved ones, we are in a romantic mood, and our thoughts sometimes do not always turn to mundane issues such as the distribution of financial obligations. However, discussing the budget of a young family is not a topic that should be avoided. In fact, it is best to discuss these issues as early as possible in order to avoid quarrels and monetary restrictions in the future.
Each person is individual in itself. When two such separate worlds form a new unit of society, it is very important that there is a mutual agreement and clear rules between them regarding various issues, including financial ones. Typically, couples are faced with the following choice: to combine the budget fully, adhere to a mixed model of income and expenses, or agree on separate responsibility for personal income and expenses. Of course, each partner must consciously agree to any of these scenarios, but then let’s try to reflect on how it is better for a newly created family or couple to manage their budget.
Choosing the Most Acceptable Way that Works for You
So, the first budgeting model, separate, assumes that all the income of each partner is inviolable, just like their spending. The advantage here is that you can forget about financial dependence on each other and avoid quarrels over the fact that someone is interested in another’s money. But in practice, this model can work well only for couples where both partners earn good money and who have just got along and started living together. Over time, in order to maintain a common life, you will still need to distribute some expenses with each other, such as food costs, utility bills, unforeseen situations, and so on. That is, you most likely cannot avoid switching to a mixed budget. But to each their own.
A mixed family budget is one of the most popular models for distributing financial obligations. And that’s why. Following such an agreement, each partner will have their money, while there will also be a separate budget for their family. Thus, no one will have an unpleasant feeling of material dependence, and the other will not feel that only money is needed from them. If this sounds good to you, here’s how you can do it. First, discuss your income level and define your family goals. Then, the total budget can be divided in proportion to partners’ earnings, and personal finances will be a personal matter for everyone. The advantages of this approach, including predictability and preserved financial independence, in my opinion, cover the disadvantages – one of the partners will have to be more involved and update the partner’s income level and make appropriate adjustments from time to time.
Have you been living together for a long time, or does someone in your union make much less money than others? Then a budget model where all the money is shared may suit you. If this scenario suits both sides completely, then why not. Together as one family, you will be able to save and optimize the budget together and spend the saved money together. At the same time, no one will feel more or less financially disadvantaged in a couple. On the bad side, having an exclusively shared budget, it will be more difficult for you to surprise each other with gifts, and every purchase has every chance of becoming the subject of a quarrel. But if you don’t get tired of negotiating with each other, you can try this option.
When choosing a comfortable budget model, it is important to consider not only the income of each partner but also their interests and needs. If possible, adjust the budget when extraordinary situations arise. You should never reproach each other for wasting family money, as this can lead to the concealment of income. Try to be honest and open about money issues under all circumstances and avoid awkwardness in discussing them. And do not be afraid to experiment because every family is different. Based on mutual trust, only you yourself will be able to establish a healthy financial climate in your household.
