Managing money as a couple

Mark_d

I've just seen a post about how another couple are looking to manage joint finances.  It has made me question if my partner & I could be doing things more efficiently.
Every month our fixed joint bills (inc. mortgage) are paid out of my account and my partner has a standing order to cover half of this amount.
Following the end of each month, I invoice (itemised) my partner for half the cost of joint expenses I've put on my credit card during the month.  My partner does the same and then we settle up.
This method means that all joint costs are handled accurately and that my money, aside from joint bills/expenses, is mine to use as I wish (and of course vice versa).
Can anyone think of a simpler way to handle joint finances that maintains transparency and separation of personal money?

SaverRate

We have 2 joint bank accounts and we both have our own current account for our own spending too  

1 for Bills, 1 for joint spending. All money gets paid into bills then a portion goes into spending and our own current accounts. 

This works for us and we think its simple. 

tacpot12

My partner and I do the same as you do, but we log our expenditure in a spreadsheet. This is our 'invoice' to each other. At the end of the month we settle up. Either I pay her or she pays me, depending on who has spent the most on expenses we have agreed to share. 

This suits as as it allows us to keep our finances seperate, but cooperate for the joint expenses.  

Rich1976

We have a joint account and share a credit card and it has made things much easier than the scenario we did have previously, similar to yours where I owed them for this but they owed me for that.
So everything goes into one account and everything regardless of who’s spent it comes out the same account.

whats left goes into Savings again in joint names where also there is no argument as to how much one of us has saved up for something but the other person hasn’t .

it works for us perfectly now.

Emmia

We have own accounts for our salaries and separate savings/investments. 

We both fund a joint account that pays the mortgage, and a separate joint account that pays for groceries. We also have a joint savings account to allow saving for house maintenance and similar "big"  costs.

Mark_d

SaverRate said:

We have 2 joint bank accounts and we both have our own current account for our own spending too  

1 for Bills, 1 for joint spending. All money gets paid into bills then a portion goes into spending and our own current accounts. 

This works for us and we think its simple. 

Aside from the money set aside for bills, how do you divide the remainder between joint spending and personal accounts? How do you decide what constitutes a joint expense?  For us, we've agreed a list which includes medical/dental bills and adhoc spending which had been jointly agreed...for example buying a new TV.

BrilliantButScary

Just as a matter of interest, when managing your finances as a couple, as the OP does, and it appears other posters, what happens in the following circumstances?

1. A disparity in income
2. An inheritance
3. If one person becomes a stay at home parent
4. Illness and disability

What factors led you to managing your finances in this way?

Mark_d

tacpot12 said:

My partner and I do the same as you do, but we log our expenditure in a spreadsheet. This is our 'invoice' to each other. At the end of the month we settle up. Either I pay her or she pays me, depending on who has spent the most on expenses we have agreed to share. 

This suits as as it allows us to keep our finances seperate, but cooperate for the joint expenses.  

Thanks @tacpot12.  It's nice to know someone else does exactly the same as we do.  We have a spreadsheet on Office365 :-:smile:

Mark_d

Rich1976 said:

We have a joint account and share a credit card and it has made things much easier than the scenario we did have previously, similar to yours where I owed them for this but they owed me for that.
So everything goes into one account and everything regardless of who’s spent it comes out the same account.

whats left goes into Savings again in joint names where also there is no argument as to how much one of us has saved up for something but the other person hasn’t .

it works for us perfectly now.

Thanks for sharing!
Can you share a credit card?  I understand you can have supplementary cardholders but the primary cardholder is responsible for the debt, has their credit report updated, and can see the secondary cardholder's spending.  The secondary cardholder can see their own spending only.
It's a positive that your method is simple but it means that your partner buys your presents party using your money.  How would you feel if your partner went out with their friends and bought Champagne for everyone using joint funds?

Mark_d

Emmia said:

We have own accounts for our salaries and separate savings/investments. 

We both fund a joint account that pays the mortgage, and a separate joint account that pays for groceries. We also have a joint savings account to allow saving for house maintenance and similar "big"  costs.

How does the joint account for groceries work?  If you pay using credit card and pay the credit card from the joint account, your partner would only have visibility of the total credit card amount.

Emmia

BrilliantButScary said:

Just as a matter of interest, when managing your finances as a couple, as the OP does, and it appears other posters, what happens in the following circumstances?

1. A disparity in income
2. An inheritance
3. If one person becomes a stay at home parent
4. Illness and disability

What factors led you to managing your finances in this way?

1. We pay some things proportionately, but our incomes are fairly similar.
2. Not crossed that bridge since we married
3. No kids (and children aren't in the future)
4. Not crossed that bridge. 

We do also have a spreadsheet for ad-hoc household /joint expenses which we tend to deal with annually.