Managing money once married?

Anglo man

Hi all, long time lurker - first time poster.

Am about to get married, all is going to plan so far however I need some advice about managing money (day to day)...is there are normal way of doing it?

At present we both have mortgages, up untill now one place is rented and we live in the other, we split the mortgage on the one we live in in half and the other (thankfully) covers itself. At the moment we put an equal amount in an account for food etc and split bills as they come in.

Our salaries differ so what do people normally do to sort out the money? tip both pay packets into one account, cover the mortgage, put aside money for bills, transfer an agreed amount to a new joint savings account and then both live out of a joint current account OR do the first bit but leave each with an equal amount'spending money' that we can do as we both see fit?

Am interested in hearing what other people do.

Thanks

aviendha

Every couple has different ways of managing money - personally, we are in the process of opening a joint account whereby everything will go in there and will both access as required.

We currently have our historical individual savings account whereby our cash saving for mortgage sits, but that will be cleared out in the next 12 months on a house, and from then on, all our accounts will be joint.

From speaking with other friends, it is becoming more popular for people to keep separate accounts and pay into a joint account to cover bills, but for us, marriage = joint team effort and we both manage money wisely, so it was a non-issue.

niceoneted

I would think the easiest thing to do is to sit down and do a projected bills for the year on a spread sheet - look at all the bills for the last year to give you an ides. These would be common bills, mortgage, house insurance, gas, house phone/broadband, electric, food and contingency on house.

Might be an idea to have a long term savings plan with the amount paid in split in proportion to your earnings ie one earns 60k the other 40k, first pays in 600 a month, the other 400 a month.

Then each needs to have there own budget account for the likes of there own mobiles, car ins/tax, petrol, (one may decide to have a flashier car than the other that requires higher costs).
If using public transport you pay yourself.

You say pay packs are difference but is there a significant difference or small. Perhaps if there is a significant difference the one on higher wages could perhaps take care of joint nights out or holidays or may like to start a fund for any future kids.

I think it is important for each individual to both pay their share but also have some independence over their own finances. It is also important you have this discussed and at least some what ironed out.

Another valid question is, are you spenders or savers or are you split on this.

Best of luck with it all.

Anglo man

Thanks for the advice.

We would both be savers (although I'd be more so)

In terms of salary difference, there's about a 20% difference.

I think you are right about each of us having independence, that's why I thought after mortgage,bills, savings etc we should have our own 'spending money' in our respective sole current accounts so neither feels guilty of buying stuff (say clothes) out of a joint account.

aviendha

I don't see how having a joint account gives up my independence - it would be different if my salary was paid into husbands account and I had no access, but I would have no qualms about spending money on myself (clothes, treats, whatever) from the joint account, and I would hope that my husband would be the same.

From speaking to friends, they can't understand having a joint account - they think that they don't want their significant others to know how much they spend on hair/clothes/shoes etc. Conversely I don't understand what the big secret is - my husband knows me for who I am, and my spending habits, so why would I stop buying my weekly chocolate dose just because we are married. Having said that, we are both quite sensible with money, living within our means so there's no fear of spending foolishly..

emma82

We have joint account that we put mortgage/bills etc money into & then have our own seperate bank accounts. I earn about 10% more so I put in slightly more to AC than him.
We also have DD set up to a joint savings account. My OH is very good with money & saving etc whereas I'm a disaster so this works for us both.

Ickle Magoo

We have four accounts, his, mine, bills and mortgage and savings. Money comes in and whatever required is paid into bills and mortgage, a certain amount into savings and whatever is left over is split between us for our own spending. :cool:

dan_d

We've a joint account - each of us put a set amount of money into that each month. It covers the mortgage, all bills (TV/internet/gas/elec) and the weekly shopping is taken out of that too, along with any bits or pieces that might need to be bought for the house. At the end of every month, any excess is taken out and put in a joint savings account, with a view to paying a chunk of the mortgage at the end of each year.

Each of us have our own bank accounts and our own savings accounts. Whatever money is left out of monthly pay packets is in our own accounts and is ours to do what we want with. It's the fairest way for us, it means that all household things are taken care of and then we can each spend our money our own way, without having to worry about how much is left in our current accounts to feed us etc.