If you are in a relationship, then you’ll probably have a conversation about money at some point. Talking about finances can be tough, and people often feel a bit awkward about it. That being said, if you want to build a life together, then you need to make sure that you’re both on the same page with how expenses are going to be divided. If you don’t know how to approach this conversation, keep on reading.

 

Are you a Team?

How do you see your relationship? Do you and your partner work as a team? Or would you rather live your lives separately for now? You essentially have two options here.

 

Option One

If you’d like to keep things pretty separate, and don’t want to commit to each other financially by opening a joint account etc, then you can still split the bills fairly. There’s a chance that you and your partner will be on different salaries, so splitting something 50/50 isn’t actually that fair. Fair doesn’t mean equal. Make a list of the expenses you have, or the things you need to pay for. This can include restaurant bills, trips out or hotel stays.

If Partner A is earning $60,000 and Partner B is bringing in $40.000 then Partner A will pay 60% of the bills, and Partner B will pay 40%.

If a meal comes to $100, this means Partner A will contribute $60 and Partner B will contribute $40.

 

Option Two

If you’d rather take a team-focused approach to paying your bills, or if you intend on moving in with each other, then the best way to do this would be for you to avoid splitting the bills at all. Pay everything into a joint account, and take the “splitting” aspect out of it. Pool your money, and approach every expense as being a joint expense, that is covered by both your wages.

 

Merging your Money

The start of your relationship will be very different to when you marry. You may find that you end up splitting the bills down the middle and this is fine for a while. That being said, it can become tedious and exhausting. You may also find that you run into issues later down the line when you have to make decisions as to what you both value the most and what you want to spend money on. The issue arises when couples stagnate and don’t move beyond this phase.

Couples who have been together for several years shouldn’t be sending each other money to cover the mortgage or their insurance. If you have been together for a while then now is the time for you to start dealing with your money a bit more efficiently.

 

Get a Joint Account

It’s helpful to get a joint bank account. Setting up a joint account may feel a little intimidating, but it’s not if you are already committed to spending the rest of your life with that particular person. You’re past the fear of commitment, so divert your wage into a joint account. It’s that easy, as long as you use the new account. All of your money, whether it is for bills, savings or even expenses, should be paid out of the joint account. This keeps any difficult money conversations to a minimum and it also means that when an expense goes up, you don’t have to sit down and talk about who is going to cover the extra cost.

 

You Can Still Have Financial Independence

Some people worry that if they set up a joint account, they won’t have any financial independence. This is not the case. You can have a savings account that you use to cover the things you want to buy. It’s money that you aren’t accountable for, and this can be helpful if you and your partner have a lot of individual interests. Each month, transfer a predetermined amount from your joint account into your side stash. Call this your judgment-free zone. This is a great way for you to buy something for your partner without them realizing and on top of this, it helps you to gain a little more independence and space.

Paving the Way to A Stable Financial Future

The great thing about having a joint account is that it helps to pave the way for your financial future. Money is often a source of tension for those who are in a relationship. If you have a partner who earns more, then you may feel as though they should cover more of the bills. Although this can be fair, the partner may have interests that they want to pursue. They may feel as though they’ve worked hard for their money, and that they shouldn’t have to pick up the slack with bills.

That’s where the beauty of having a joint account comes in. You don’t have to pay more because you earn more. Whatever is left after the bills, can go into your own individual savings accounts. Over time, you should be able to build enough money to cover almost anything you need individually. If your partner’s in a rock band and they want to buy a new Gibson guitar, they can do so, free from guilt and judgment. Why? Because they’ve earned that money, put it away and not compromised the bills or the lifestyle you have as a couple. The same concept applies if you want to go on a spa day with your friends, or if you want to splash out on an expensive bottle of champagne, so keep that in mind.

Your money is your own, but at the same time, you are facing your financial future as a team. If you want to ensure the longevity of your relationship, this is key. Why not see if you can have this conversation with your partner today, to ensure that both of you are on the same page and that you can live your lives free from those difficult money-focused conversations?