Every couple fights and most of the times, it’s because of the money! The core of the problem is money management. Most couples fail at managing their money and hence, there are clashes. The best way to avoid such circumstance is to prepare a budget and adhere to it. You might find difficulties in the initial days, but eventually it will get better.
Why do you need a budget?
The plan to make a budget has to be a unified decision. If your partner is not convinced with the idea, persuade them by telling them how a budget can bring order in your life and evade money-related hassles. Here are a few benefits of a budget:
- A budget helps to plan long term goals and plan accordingly
- It prevents the possibilities that you will end up having no money at the end of the month
- It financially prepares you for emergencies
- It helps to check on the spending patterns
Planning a couple-budget
Setup a meeting
The budget needs planning. Make time for it because you cannot make a successful plan without some brainstorming. Decide a day when both of you are free to sit and work on creating a budget. Pen down all the relevant things that need to be considered and discuss each of them in detail.
#1. Income, necessities and contribution
Note down the total revenue of your partner and yours. One of you might be earning more than the other, figure out a way suitable to both of you. The most common method to contribute a certain percentage of income. This way both the partners get a certain amount to save or to spend on themselves.
After setting the budget constraint, it’s time to determine the monthly expenses. These expenses include electricity bills, phone bills, EMIs, rents, groceries, pet supplies and other miscellaneous expenditures. Bills and rents are easier to manage as they occur once in a month, but the rest of the expenses are recurring. The amount isn’t always the same; therefore, approximate a value that covers the unexpected costs as well.
For better planning and ease, you can download some money management apps. Some of the best national banks also provide apps that provide facilities to manage money in a better way.
#2. Considering the individual expenses
After the needs of the household are determined, it’s time to focus on the individual needs. They include education loans, gym memberships, clothes and accessories etc. It’s better to put these expenses separately in personal accounts because there is no set pattern of these expenses. The lack of uniformity in expenditure leads to problems.
Talk to your partner and know what’s essential for them. Both of you need to understand that it is very important to recognise the differences and cater to them. Set up allowances for both of you and make sure you do not intervene in your partner’s individual account. As long as both of you are spending on the limit, everything would be calm and peaceful.
#3. Learning to adjust
When you are living as a couple, there is no yours and mine. You have to be a united whole. It makes things complicated and diminishes the sense of togetherness. Adjustments are necessary for every couple. Making compromises isn’t easy; however, the rewards are worth all the efforts you put in. Don’t forget to communicate about every necessary aspect. It is the key to tackle all the problems. For money-related matters, talk about everything, in the beginning, so no confusion leads to problems in future. Try sticking to the budget plan, but don’t be too rigid with your budget plan, if the budget plan demands change, make it happen.
#4. Budgeting for a happier love life
With a budget, you will be having more order than chaos in your life. When two people share the financial burden of a household, a budget becomes necessary. It will reduce the possibilities of a fight and hence, there will be much love in your life.