Create a Single Budget as a Couple
Building a combined budget with your spouse/committed partner, where most if not all income and spending is shared, can dramatically speed up your timeline on meeting shared financial goals.
What I mean by creating a single, combined budget for a couple, I’m saying:
All incoming money starts as shared.
Every paycheck from both spouses are deposited into one joint checking account. This also includes income from side gigs and garage sales. Both see what’s coming in and make saving and spending decisions together.And don’t worry - both spouses can have separate accounts as well.
If some financial independence is important, each person can have a separate checking account, but all incoming money starts in the shared account and is transferred to each individual account as agreed.
Consumer debt is shared.
That’s right. Credit cards, medical debt, student loans, car loans, and any other type of consumer debt, regardless of whose name they’re in, are considered joint responsibilities in a single budget. Once both spouses agree on “what’s mine is yours” when it comes to debt, the faster they can find margin to pay down the debts, together.Strategic debt is shared.
This refers to debt that has equity, like a mortgage, and should be in both spouses’ names. Both incomes should be going toward paying down these debts from a single budget.Big savings goals are shared.
Think of vacations, a new primary home, a new home to rent out, home renovations and big repairs: these are joint priorities and should be saved for together in the budget.Small individual goals are respected.
This is incredibly important for couples that want some financial independence while agreeing to merge finances. If one spouse has a personal goal the other doesn’t share, you can still agree to fund it from the joint account and transfer that money into a personal account.All wealth-building assets are shared.
Retirement accounts, brokerage accounts, real estate equity; all should be viewed as a joint endeavor, and both names are on the accounts and contributed to from the single budget.
For many couples, creating a single, combined budget can feel like a stretch, especially if there’s a history of mistrust or financial stress. But when you manage money together, your capacity to build wealth is significant. I strongly consider merging, because you can:
Save more, faster.
If not merged - $5,000 individual income at 10% savings = $500/month
Merged - $12,000 combined income at 10% = $1,200/monthAvoid costly financial mistakes by making decisions as a team.
Grow your wealth faster through shared investing and compound growth.
Buy a home and pay it off faster, together.
Build strong retirement savings that secure both of your futures.
Free each other up to pursue new careers, education, or side income without financial stress.
Review a simple checklist to begin understanding what it means in practicality to merge finances.
Also, check out these 9 steps to building wealth as a couple.
Contact Justin for one-on-one tutoring or small group instruction.
Visit my home page.
