A
female
age
41-50,
anonymous
writes:Newlyweds, how do you manage your finances. In the 20th century I see a lot of couples having seperate account plus a joint account. If you are doing this, was this discussed prior to marriage? What percentage of your income is personal account and joint account? What if the wife makes more, is she still liable to put in more percentage in the joint? When he takes the wife on a date, what account is he supposed to take the bill money from, his personal or joint? If joint, what is so special about the date when it seems like both of you split the tab?Just some questions I need to know as me and my boyfriend of one yr are getting close to getting married.
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female
reader, Dorothy Dix  +, writes (25 July 2011):
Hello again. It's not really a case of making anyone jealous, as to who earns what. It's irrelevant.
It's not like you are being dishonest, it's more a case of both of you keeping a little bit of independence.
Independence is much better than asking - "Can I have $...... for (whatever)", which is rather demeaning.
Just so long as neither of you is spending up extravagantly, and perhaps getting into further debt - such as a very large credit card debt.
A
female
reader, CindyCares  +, writes (23 July 2011):
 I think it's ok to keep your personal account private .. but as for not making your spouse jealous, well, I don't know if it is a great reason. Is not he/she supposed to be happy that you are financially successful /comfortable ?
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A
reader, anonymous, writes (23 July 2011): This is verified as being by the original poster of the questionIs it ok to keep the personal account private not to make your spouse jealous?
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A
male
reader, anonymous, writes (22 July 2011): I'm not newly wed, but after 18 years I'd have to say that everybody skins this cat their own way. But be prepared to be open, honest, and willing to discuss if you want to be married in 10 years.I make a lot of money, to say the least, around 4-5 times what my wife can make. From the get go, I have always felt that all my income should go into a joint account, and hers as well, because all that I earn is hers as much as it is mine, and then we jointly decide how to spend for major issues. Initially, because she was pregnant and working, I managed the accounts primarily. Later, when she decided to stay home and be a homemaker, she took over the accounts. She is cautious and I don't have to worry about her management of this. Minor expenses, daily cost of living issues, which can add up, are a non-issue, and we don't even discuss them unless money is tight...which it often is due to the economic meltdown. I bought a tool for myself, for work, around 3000 dollars, and we planned that out and purchased only when she said it was ok to do so. For any extraneous wants, if it is over the price of a book or clothes, we are cautious.Other close couples I have known opt for far more secrecy.One of my brothers, who also makes a lot of money, never even wanted his wife to know what he made, or exactly how he spent it (turned out to be other women and what else we just don't know). They are divorced now, money issues and where it all went figured greatly in the divorce, on top of the secretary he'd been riding.My sister in law, who also made a lot of money, didn't want her husband, my other brother, to know what she made, or how much she was spending and how she was spending it (other men and what else we don't know). They are divorced now as well. This brother was extremely shocked when he found out how much money she had been making (she filed taxes as "married filing separately" and would not allow him to know how much she was making and what she had) during the divorce, she'd been making around 70K per year, in a low cost of living area, and still borrowing money from him and he'd paid all the house expenses and mortgage, and he'd thought for years he'd been the major income in the house. While they were "scraping by", in a single year she'd spent 40K on jewelry and "personal expenses" on just herself.Bottom line, contrasting these situations, if I had an affair, my wife would be the first to know, because she knows where every dime I spend goes...really...every cent in fact, and I want her to know.
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A
female
reader, anonymous, writes (22 July 2011): We have been married for 7 years, so not newlyweds.. but since we got married we have always had joint accounts. I figure if we are intending to share out lives together, we could certainly have a joint account.. we set a limit: if something costs more than $50, we discuss it. I am in charge of the bills, so I know what he can and cannot spend. There is no "allowance".. I know what goes in and what comes out. So... we don't have separate accounts. I figure whats his is mine and whats mine is his.. BUT we have no "extra" money. Everything pretty much goes towards the kids, the house, etc. My mom takes the approach of "husband spent $200 towards golf last month so I will take $200 and do what I want with it".
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A
female
reader, Dorothy Dix +, writes (22 July 2011):
Hi there. Regardless of how much anyone earns, you just pay half each for everything - food, bills, mortgage or rent.
If you only have one car between you, well then you can both contribute towards petrol - half each every week also. If you spend $60 a week for petrol, you both pay $30 each, for that. Other than that, if you both own a car, well then you are each responsible for running your own cars. This is fair.
Same goes for registration - one car - you both pay half. Separate cars, you are each responsible for your own car.
Yes, it is wise to each have your own separate bank accounts, and one joint account. The separate bank accounts allows you both individual independence and a certain amount of freedom because of this. It will also avoid any unnecessary arguments in future. Those indivual accounts are yours to do what you want - clothes, petrol, public transport fares, buying lunch at work, driver licence renewal, etc.
These separate accounts will be the accounts your pay goes into each week, fortnight or month.
It's wise to get into good money habits from the moment you are married.
You are probably either renting for now or, are already paying off a mortgage.
You will need to budget every week for:-
(1) Mortgage repayments or rent.
(2) Bills (electricity, gas, telephone, council rates, water rates, internet, mobile, cable tv - if you have it).
(3) Food kitty - groceries, fruit, vegies and meat.
(4) Insurance policies - house, contents, car, health insurance - which will all be monthly automatic debits.
With health insurance, make sure you have a family policy - rather than 2 separate policies. If you eventually want to have children, you will then just add your children to the existing policy. Then you're all covered.
Once you calculate how much your bills comes to each month, divide that by 4 weeks and pay half each every week on pay day. For instance $1200 per month worth of bills, would be $150 paid by each of you, every week to cover this.
That's just an example - your's could be less or more. Some months will be slightly more than others. But you probably get the idea I think.
DO NOT include rent or mortgage repayments - because they are separate. These are paid half each, every week also, just like the utilities.
Then over time, you might have to adjust what you pay each week, as needed. It's always better to pay a bit more than is needed into the bills account, so the account doesn't get drained every time you pay a bill. It will also help you avoid overdrawing your account and paying fees for this happening - which is ultimately just another bill.
Each quarter will have different utilities falling due, your land rates and water rates being the most expensive.
If you are paying off a home loan, if you can manage to pay a bit more every week - extra on top of the minimum amount due - this will shorten the term of your loan, and will consequently save you many thousands of dollars over the term of the loan.
It's really worth considering very seriously. If you can pay an extra $100 a week ($50 each) - every week (without struggling of course) - this will help tremendously. That's an extra $5200 every year. And if you are able to pay even more than that, well all the better for you in the longrun. But in any case, any extra money you can pay a week, will certainly help you. Just make sure that you can reasonably do this. Any extra money paid on the mortgage, should be paid half each.
But as I was saying earlier, 50/50 for everything that is a shared expense.
And YES, definitely have separate accounts and ONE joint account for the bills.
Then you can't go wrong.
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