Personal, Personal, Joint Method of Finances
There are many ideas out there on how a married couple should handle their finances. Some say to put everything together in the same account because it is now “our money” not “my money”. Others are in the mindset to keep things separate, you are in charge of making the money and paying your half of the bills. Then there is the strategy that we go with, which is a combination of both. My wife has a separate account, I have a separate account, and we have a joint account. I personally think this is the way to go with your finances especially in the beginning of your marriage when you start out talking about who is doing the dishes tonight, imagine having talks about spending $5 on a Latte at Starbucks. So the Personal, Personal, Joint method is our plan of attack.
How does this work?
Great question from the audience! Our accounts are broken up something like this.
|Mr. Even Steven||Mrs. Even Steven||Mr. and Mrs. Even Steven|
|My paycheck||Her paycheck||Transfers from Mr. and Mrs. Accounts|
|My personal loans||Her everyday expenses||Mortgage|
|My everyday expenses||Transfers to Mr. and Mrs. Even Steven||Groceries|
|Transfers to Mr. and Mrs. Even Steven||Rental Property||Entertainment/Eating Out|
The above chart is meant to keep it as simple as possible, but the idea is that if you brought debt it into the marriage you are responsible for it. I would say this was more of Mrs. Even Steven’s idea than mine in the beginning, probably because she was in better financial shape than I was. I would have to say after 3 years of marriage it is the best thing for us which is the most important.
Does Mrs. Even Steven pay any of Mr. Even Steven’s Student Loans?
No, not a penny. At first I was bummed out about this strategy, I mean my wife was bringing in extra income and was not helping me out, what the crap wife? We decided to attack our debt more personally. She brought a house into our relationship which is in Florida, I do not pay a dime towards that house, just like she does not pay a dime towards my student loans. What it does is make attacking our own debt personal. Nobody hates my student loans more than I do, I promise you that. So when I’m staying late at work, earning extra income on eBay, or bringing my turkey sandwich and piece of fruit to work for the 37th time this month, I’m doing it for me and to attack my student loan debt.
Have you had any problems with this method?
It’s been great I don’t think we have ever really had a problem with the Personal, Personal, Joint Method of our finances. I would say in the beginning it was a little tougher to swallow knowing that Mrs. Even Steven had extra money that I could throw at my student loan, but that went away quickly when I paid off one of my student loans all on my own.
We are a Team
That is the best part of all of this, while we have separate accounts and separate paychecks, we are a team that knows the end goal is to avoid the 12,000 Day march to retirement. If we were not a team, I would probably be spending my money on basketball jerseys, season tickets to the Cubs, and driving a Mercedes with a life altering payment. Like many coaches out there have said before “There is no “I” in team”.
How do you handle your finances separate or together? Have any problems with your method of finances?
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