How to Make a Budget for Couples
Being in debt or having disagreements over how to handle money can have a negative impact on a couple's relationship, according to James Marshall, assistant professor of Family Life at the University of Arkansas. Whether you and your partner have money to spare at the end of the month or find yourself running low on cash, you can benefit from a sound budget. In addition to removing stress from your relationship, a budget can help you meet your short- and long-term financial goals.
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Instructions
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Calculate each partner's average monthly income after taxes and insurance. Add up each paycheck the partner received throughout the past year, and divide the total by 12.
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Gather your bank statements, purchase receipts and debit or credit card statements for the past 30 to 45 days. Use a lined piece of paper or a computer program such as Excel to separate your expenses into categories.
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List categories of fixed and variable expenditures for both of you on your computer or notebook paper. Fixed expenses may be items such as rent or mortgage costs, utilities, cell phone and cable bills, car payments and student loans. Variable expenses include entertainment, restaurant meals, technology purchases, clothing, vacations and car and home repairs.
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Add your total variable expenses and total fixed expenses together. Subtract your total expenses from your combined monthly income to see if you are meeting your monthly financial obligations.
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Discuss what variable expenses each of you needs to reduce. Reducing expenses can help you save for education, retirement or vacations. If one partner spends a large percentage of his income on technological purchases, and the other spends more on clothing, discuss how much each partner should spend on these types of purchases each month.
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Examine each fixed expense. While you cannot easily change your mortgage or car payment, you can reduce or eliminate some fixed expenses. Consider whether you need cable television. Decide whether you can lower your utility bills through conservation, and analyze your cell phone bill for opportunities to reduce expenses.
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Set new savings and spending goals together. List your goals as a couple, and individual financial goals, if appropriate. Write a new budget that will detail your plan. Assign each partner certain expenses to be responsible for, if you do not pool your resources.
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Track your individual and overall spending each month going forward. Be honest with how much each of you spends on unplanned items, or if you spend more than planned in a specific budget category.
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Tips & Warnings
Set up an automated savings plan by asking your bank to put a set amount of money in your savings account each month. Your employer can often send a specified amount of your paycheck to a savings account, with the rest going to checking.
Paying off credit card bills will help you save more money and develop good financial habits.
Consult a financial counselor if you are unable to meet your monthly obligations.
References
Resources
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