This article is all about sharing tips from couples about how they split finances while living together.
Bills, bills, bills. It’s one of the least fun parts of adulthood. One of the biggest roadblocks for people living together is how to split financial responsibilities without coming to blows. It’s easy if you’re not in a relationship, but it’s tough when there are two opinions on how to run things.
This post may contain affiliate links, which means I’ll receive a commission if you purchase through my link, at no extra cost to you. Please read the full disclosure here.
Different Ways to Split Expenses With Your Partner
There are a few different ways to fairly split expenses, depending on your unique situation. The most important thing is to come to an agreement that works for both of you – and stick to it.
1. One person pays all the bills
If one person has a higher income or is better with money, it may make sense for them to take on more financial responsibility. This can help simplify things and ensure that all the bills are paid on time. Just be sure to agree on a fair way for the other person to contribute – whether that’s splitting groceries down the middle, or chipping in for nights out.
2. Equal split
This is the most straightforward way to split bills and can work well if you have similar incomes. Simply put, each person pays an equal share of the bills each month. This can help prevent arguments about who paid what and ensures that both people are contributing equally.
3. Percentage split
This method can be helpful if you have very different incomes. To figure out the percentage split, add up all your monthly income and debts, then divide each person’s share by the total. For example, if Person A earns $3,000 per month and Person B earns $6,000, Person A would pay 30% of the bills and Person B would pay 60%. This can help make sure that both people are paying a fair share based on their income.
4. Hand each other cash
This one works if you’re both in agreement. You just hand each other enough cash to meet your respective expenses at the end of every month so that there isn’t money flying back and forth between the two of you.
5. Split the things so you both are responsible for
This one is a better idea if you’re the spender and your partner is the saver. You should each pay for a particular area of spending such as utilities, rent, or insurance (and anything else that is important to you).
handling finances with your partner
There are two major ways to handle it:
- You can either have a joint account and split everything 50-50 or
- you can keep a personal account and pay for certain things yourself. In the latter case, you’ll be more responsible for the bills of the household (utilities, rent) while your partner will take care of everything else like insurance and credit cards.
You need to be very clear with your partner about who is taking care of what and where the money is going. If you aren’t clear, it’s going to make it harder for you if you want to move on in the future.
Know your partner’s financial habits. If they’re a spender, they’re never going to give in to the idea of budgeting. This will make things more complicated than they have to be.
If one person’s income decreases, make sure to review your budget and see where you can make adjustments.
It’s also a good idea to try and be in sync with your partner’s financial habits. If you spend more than he does, at least agree on how much he can spend without you fighting about it later.
Try to avoid buying anything for your partner that he doesn’t want (and vice versa). It’s not a good idea to buy your partner’s affections or make them feel like they have to give something in return.
If you’re the one who wants to carry more of the financial load, it helps if you plan on it beforehand. Knowing that you’ll be paying for your share of everything helps reduce arguments about it later.
If you’re the one who wants to pay more and you do, it’s a good idea to talk about what each person has going on financially so that you both know what you’re working with.
If you’re the one doing the paying, think of it as a temporary arrangement while things get sorted out. I know this is hard for some to say, but that’s how it is. No one looks good taking free money from their partner.
Agree on the fate of the money if you split up. It’s a good idea to have it invested so that you have peace of mind knowing it will be there for you in case something happens.
Don’t use your partner’s financial situation as a way to justify spending more than he or she does. You’ll never get anywhere if you’re constantly feeling that your partner is being unfair about something like this.
Important Tips When Splitting Bills
1. Talk about your finances
This is the most important thing you can do when splitting expenses with your partner. You need to be on the same page about your incomes, debts, and spending habits. Otherwise, it’ll be hard to come to a fair agreement.
2. Don’t use money as a weapon
If you’re constantly withholding money from your partner, this will never go anywhere. If your partner feels like they have to give something in return, they’ll never really be happy.
3. Plan for what you need
If you are planning on getting married and having children it’s time to make some serious plans. You’ll need to start saving money because this is going to be a big expense. If you’re feeling like you can’t get your partner to talk about it, make sure they know how important this is so they do.
4. Set your own spending goal
It’s important to set financial goals. If you don’t set them, you’ll be discouraged from achieving them because there won’t be any point to them.
5. Keep track of how much you spend
The best way to keep track of your expenses is to write everything down and put it in a folder with your monthly bank statement. This will make sure that you don’t make a mistake and it’s going to save you the trouble of having to remember everything yourself later.
6. Establish a budget
The first step to fairly splitting finances is to sit down and establish a budget. This will help you and your partner understand where all of your money is going and what each of you is responsible for.
7. Determine who pays for what
Once you have a budget in place, it’s time to start splitting up the bills. Determine who will be responsible for which bills and expenses. It’s important to be fair when splitting up the bills, so make sure each person is paying an equal share.
8. Put money into savings
It’s also important to start putting money into savings. This will help you in case of an emergency and will give you a cushion to fall back on if one person’s income decreases.
9. Seek professional help
If you’re having trouble communicating or agreeing on a budget, seek professional help. A financial advisor can help you and your partner understand your finances and figure out a plan that works for both of you.
11 Things to Avoid When it Comes to Splitting Expenses
1. Avoid making purchases without consulting each other: this will put you both in a position where you’re constantly fighting about something small. Don’t assume that everything is going to be fine because it’s not.
2. Don’t take money from your partner on a whim: this will make them feel like they lack control over the situation. If they do not want to give you money, that’s their choice. You need to respect it.
3. Don’t keep the numbers hidden – part of having an open and honest relationship is being able to see how much each person spends. If you’re hiding how much your partner is spending, there’s no way for them to make any good decision about things like this if it’s as much as you spend.
4. Ask each other how things are going on a regular basis: part of agreeing on finances is to be sure that you’re both working together. Make sure you’re asking each other what they’re doing with their money so that you can help them out if they need it.
5. Don’t use the money as a threat: if you feel like using the money as a way to get your partner to do things that they don’t want to do, this will not work. It could make things worse instead of better.
6. Don’t have things that are unimportant to both of you: this will cause a strain on finances because it can get hard for both of you to keep up with what each other does. It’s important to be able to spend time together, especially if you’re the one who’s going to be paying for things like babysitting or anything else.
7. Don’t use the money as a reward: if you’re constantly working on ways to make your partner have fun, this will not last. Both of you need to be able to do things regularly so that you can be happy.
8. Don’t forget what the relationship is about: when it comes to financial planning, the bottom line is that it’s all about happiness. If your partner is happy with the way things are going, then you’re doing great.
9. Do not hide any debts or expenses from your partner. If you’re creating a debt crisis that’s going to be big, this could cause problems. Once you get past the money issues, your relationship will go on to new and interesting things.
10. Don’t spend more than you can afford just to keep up with your partner. If you find yourself in this position, it’s time to make some changes. You can have great times together without spending a lot of money on things just to keep up with the other person.
11. Keep lines of communication open: Money can be a sensitive subject, so it’s important to have open and honest communication with your partner about finances. If there are any problems or concerns, make sure to talk about them right away.
Make sure you’re on the same page with your partner about money. It doesn’t matter who is more of a spender as long as both of you are making progress. Just make sure that your partner isn’t always giving in because they feel like they have to, and you’ll be fine.
Splitting finances in a relationship doesn’t have to be difficult, especially if you’re both on the same page. Living together can be a great way of knowing if you can get along when it comes to financial matters because it’s more than just splitting bills. It requires communication, planning, and spending money. If there are any disagreements, be sure to talk about them right away.
There’s no right or wrong way to splitting finances with your partner, it all comes down to what works for you both as a couple. The most important thing is to have a clear agreement in place so that both people are on the same page. Otherwise, you could end up with some serious arguments down the road.
With some careful planning, you can avoid many of the common pitfalls that couples face when it comes to money.