Creating a budget with your significant other isn’t just necessary for managing your household expenses; it’s also an important part of working together as a team. While financial planning can be stressful for some, breaking it down into a few simple steps will make budgets and taxes feel less daunting. Here are a few tips for creating a financial plan with your partner.
How to Budget With Your Partner
There’s no alternative to talking openly with your partner about your budget. If you’ve never had this conversation before, set a time to sit down and create a plan together. Be honest with each other as you work: doing so creates a space to build trust and closeness.
2. Identify Your Financial Styles
Some people are financially conservative, while others readily spend without a second thought. Knowing you and your partner’s financial styles will allow you to manage expectations and reach a compromise for spending and saving that you’re both comfortable with.
3. List Income & Expenses
Creating a budget requires both of you to disclose your income, including any additional sources outside of your primary occupation, such as side jobs or royalties. Your combined income determines how much money you have to budget with.
Next, list your expenses. Include all living expenses such as housing, food, and insurance, along with important factors like debt or luxury purchases.
4. Track Expenses & Spending
Even though you’ve already listed expenses, it’s important to create a bookkeeping system to see what your spending looks like in daily life. Create a spreadsheet with different categories listed for each expense or try a budgeting app. Log your expenses regularly to see which categories you spend more on and if you can cut spending in any area.
5. Share Goals
Are you looking to buy property, go back to school, or pay off debt? Whatever your long-term goals are, tell your partner so that you can come to an agreement on what you’d like to accomplish as a couple financially. Once you’ve established your goals, you can incorporate them into your budget and start working toward them together.
Managing money and taxes with your partner doesn’t have to be overwhelming, especially with help from Donna Sellers CPA in Brownfield, TX. Offering a range of personalized accounting services for individuals and businesses, this accountant assists couples with bookkeeping and taxes. Head to the website to learn more or call (800) 618-4914 to schedule a tax consultation.