By Brian Flax
Setting up a household budget on your
own can be a process. It can become even more complicated when you
bring your significant other into the picture. Whether you're married
or in a long-term relationship, setting up a household budget is a
necessity whenever finances and living expenses are shared.
To
keep everyone on the same page, follow these tips for communicating
with your partner when setting up your household budget.
 |
| Pick a time you and your significant other can commit to discussing your finances and household budget. |
Communication is key
The first step in setting up a household budget with
your partner is to communicate. If only one person is responsible for
setting up and tracking income and expenses, it can cause frustration
and anger when things don't go as planned. To ensure everyone is on
the same page, pick a time to sit down together when you can focus
all your attention on the task at hand. Don't talk about finances
when there are distractions, like making dinner or doing household
chores.
Pick a time you can both commit to on a regular
basis. Creating a household budget isn't a one-time process; you may
need to revise or reevaluate your budget at some point, so set a time
each week when you can have a distraction-free discussion.
Be prepared
After you have agreed to a time when you can both
sit down and discuss the household budget, start preparing for it. If
you have any individual expenses, have the account information, due
dates, and minimum payment due with you during the discussion. Ensure
you're prepared with all of the information you'll need that's
relevant to the budget. Don't leave anything out that could cause
problems in the future; be as transparent as possible.
Discuss your goals
You should discuss both long- and short-term
goals together as a couple. Doing so will keep you on the same page
and make it easier to decide how much you'll be putting into savings
with each paycheck. If you have any major purchases or expenses in
mind, now is the time to discuss them. Be prepared to compromise if
you have different ideas in mind on how your savings should be
spent.
Even if you only have one income, it's still important
to include both people when setting up the household budget.
 |
Pick
budgeting software that offers a mobile app to keep track of spending
on the go.
|
Determine what you need
When you
start to create the household budget, determine how much you need to
get by every month. Consider your rent or mortgage payment, utility
bills, groceries, car payments, and any recurring debt payments
first. Figure out how much you need for these expenses every month
before determining how much you can spend on entertainment, and what
you can afford to put away into your savings.
When you and
your partner know exactly how much you can spend every month, it'll
help keep everyone accountable for their spending habits.
Take advantage of technology
There are several free tools
available online that will keep track of your account balances,
payments, and due dates. If you decide to use one of these programs,
ensure you both have access with a username and password. Online financial planners can take some of the frustration
out of the process by automatically keeping track of your income and
expenses. This means you can focus less of your time on finances by
knowing exactly where you stand at any point in time.
Track your spending
To keep everyone accountable for their
spending, ensure you keep receipts whenever you spend money on
unnecessary expenses. If you use a program to track your spending,
keeping receipts makes it easier to enter the data during your weekly
or monthly meetings. It may help to set up an individual allowance
for you and your partner so you know exactly what you're able to
spend. Pick financial software with mobile apps so you can track your
spending and stay on budget while you're on the go or not together
for a period of time.
When you and your significant other are
on the same page about your finances, you'll spend less time worrying
about money and more time working toward both your short- and
long-term goals. Use online budgeting software to help get you
started, and make sure you both have access to the same data.
About the author: Brian Flax is a freelance writer based out of the Washington, D.C., area. He is experienced in a variety of topics, including education, technology, and finance. Brian holds a master's in education technology and a bachelor's in entertainment business.
