http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/ A narrative financial and investment column Mon, 15 Feb 2010 18:53:07 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/comment-page-1/#comment-6209 Prem Thu, 09 Apr 2009 14:53:32 +0000 http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/#comment-6209 Best formula (let me call it the third approach, other two approaches are discussed below) we have come up is that we effectively have two accounts. I manage one account that pays the big ticket items (Mortgage, insurances, retirements, college-funds, etc) and my wife manages the day-to-day account (Groceries, phone, diapers, ATM withdrawls, etc). Since I am the only earnier right now I transfer a fixed amount to my "wife's-account" that is sufficient to cover the expenses and some left-over. If there is extra left-over money in her account she can spend it the way she likes. Every month she draws out (in the form of ATM or credit card bill) a fixed amount for my spending for the month of which I do not have to keep track of the details. We both have access to both of these accounts but the responsibiity is divided. Through this approach I get to limit the overall spending per month and she gets to keep a tab on the details. This, I believe, has made my wife more concious about her spendings and I have stopped annoying here by not-asking the details of spending whenever it over-ran in the past. Originally we tried where I completely controlled the accounts and also she had a try for two years at this approach. That only made each of us "control-freaks". Under a second approach, we set limits to our individual spendings; but, "we" found ways of incorporating our individual spendings into "groceries, etc". That was a disaster too. The third formula has worked well over the past year-or-so. Once she starts earning, the third approach will be adjusted based on the total combined income, but the basic approach will be maintained. Best formula (let me call it the third approach, other two approaches are discussed below) we have come up is that we effectively have two accounts. I manage one account that pays the big ticket items (Mortgage, insurances, retirements, college-funds, etc) and my wife manages the day-to-day account (Groceries, phone, diapers, ATM withdrawls, etc). Since I am the only earnier right now I transfer a fixed amount to my “wife’s-account” that is sufficient to cover the expenses and some left-over. If there is extra left-over money in her account she can spend it the way she likes. Every month she draws out (in the form of ATM or credit card bill) a fixed amount for my spending for the month of which I do not have to keep track of the details. We both have access to both of these accounts but the responsibiity is divided. Through this approach I get to limit the overall spending per month and she gets to keep a tab on the details. This, I believe, has made my wife more concious about her spendings and I have stopped annoying here by not-asking the details of spending whenever it over-ran in the past.
Originally we tried where I completely controlled the accounts and also she had a try for two years at this approach. That only made each of us “control-freaks”. Under a second approach, we set limits to our individual spendings; but, “we” found ways of incorporating our individual spendings into “groceries, etc”. That was a disaster too. The third formula has worked well over the past year-or-so. Once she starts earning, the third approach will be adjusted based on the total combined income, but the basic approach will be maintained.

]]> http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/comment-page-1/#comment-2600 Chihuahua Lab Thu, 31 Jul 2008 21:09:41 +0000 http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/#comment-2600 Mutual Understanding Matters :) Mutual Understanding Matters

]]> http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/comment-page-1/#comment-2107 Carnival of Personal Finance # 145: Baby Education Edition | 8ZU Fri, 11 Apr 2008 20:03:09 +0000 http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/#comment-2107 [...] Jon from The Money Mythos talks about Splitting Costs in a Marriage. [...] [...] Jon from The Money Mythos talks about Splitting Costs in a Marriage. [...]

]]> http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/comment-page-1/#comment-2013 Carnival of Personal Finance # 145: Baby Education Edition | Million Dollar Journey Mon, 24 Mar 2008 13:11:59 +0000 http://www.moneymythos.com/2008/03/18/splitting-costs-in-a-marriage/#comment-2013 [...] Jon from The Money Mythos talks about Splitting Costs in a Marriage. [...] [...] Jon from The Money Mythos talks about Splitting Costs in a Marriage. [...]

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