Author: Ashley Gold

Having the right tool at your disposal doesn’t mean the work is done. Far from it. There are still conversations to be had to make sure you are on the same page and ready for financial matrimony. Before creating your new joint accounts, make sure you run through the below list:

1. Decide How Your Accounts will be Structured:

Are you going to keep your money separate? Are you going to combine it all? Or are you going to take the hybrid approach and combine most, but still keep your individual accounts? If you’re doing hybrid, will you put the same percentage of each paycheck into the joint account and the rest in your individual accounts? Or, will you put the same dollar amount into your individual accounts and the balance into the joint (a more equitable option)? This decision is the first thing you need to decide so you can set-up your accounts and management tools accordingly.

2. Discuss Your Financial Goals:

What do you want to save for? An Emergency Fund (yes!)? Retirement? A house down payment? College education? A travel fund? Or do you want to focus on debt repayment? Write down all your goals so when you create your budget, you know to where income should be allocated. Ensure you open a high-yield savings account for any goal that needs to be liquid.

3. Work On Your Budget Together: 

Sit down with your spouse and create a budget that reflects your combined income, expenses, and financial goals. You can do this in your online money management tool, or take a back-of-the-envelope approach to start. Begin by subtracting your fixed expenses and “needs” from your income, then allocate some income to your savings goals (pay yourself first). Last, you can budget for your “wants.”

1. Your Fixed Expenses/needs include the likes of housing, loan repayments, utilities, food, minimum credit card payments, and transportation expenses (basically all your necessary living expenses and financial obligations).
2. Your “wants” include the likes of new clothes, dining out, spa treatments, travel, etc.

4. Be Transparent About Your Spending Habits:

In your discussions right now, it’s important to be honest and transparent about your spending habits. This will help you avoid any misunderstandings or money-related conflicts. Consider making rules where you consult your partner for any purchases over $X amount. You don’t want to lose your independence, but you need to be respectful of the fact your actions affect more than just you now.

5. Review Your Finances Together Regularly: 

Make it a habit to review your finances together at least monthly, and adjust your budget or financial goals accordingly. On the 1st of the month, you can review spending for the prior month and make adjustments to the current month’s budget. If one of you is more money-minded (hi, it’s me), you shouldn’t do all the work. If something were to happen to you, you want to ensure your partner is 100% knowledgeable on your situation and accounts. Including them in the process is for their benefit.