Budgeting as a Couple

Budgeting as a Couple

Couple budgeting is quite a personal and revealing experience. It’s no wonder that it’s not something that’s usually looked at doing with enthusiasm. However, the advantages of getting to it and doing it right, often outweigh the dread of starting to budget as a couple.

The Advantages of Couple Budgeting

It’s easy to think of the drawbacks, as well as potential pitfalls, of being financially accountable to someone else. Here are some of the advantages you are very likely to gain by not getting distracted by the fear of budgeting together.

5 Advantages of Budgeting as a Couple

1. 1. Helps strengthen your relationship, by fostering honest and open conversations.
2. 2. More bang-for-your-buck, as you can coordinate payments.
3. 3. Increased short and long-term options, because you’re directing your financial choices together.
4. 4. Less stress, as you can plan and track expenditure more accurately.
5. 5. Less anxiety, you are more likely to manage your money wisely and keep to a budget.

How to Budget as a Couple

There are various ways of managing finances in the longer-term. However, no matter if you choose to use a money app, a spreadsheet or an old-fashioned ledger, the starting point remains the same. You need to know what each of you earn and spend. Then, accordingly, draw up a budget.

Step-by-Step Guide to Couple Budgeting

1. Expenditure:

1. a. List individual and combined (eg: household) expenses.
2. b. Review expenses and see which are duplicated or can be merged.
3. c. Categorise your expenses into: Essential and Non-Essential (flexible) groups.

2. Income:

1. a. List individual and combined income streams.
2. b. List individual and combined savings.

3. Balance:

1. a. Compare your combined income and expenditure totals.
2. b. If your expenses are higher than your income, see where you can decrease your spending. Start by looking at your non-essential list (entertainment, treats, eating out…).

4. Agree:

1. a. On a budget, taking into account each other’s individual needs and preferences.
2. b. How you will record and track expenditure.
3. c. What you both need to bring to your next budgeting meeting.
4. d. When and where your monthly budget meetings will be.

5. Record and Review:

1. a. Keep a record of your expenses as planned.
2. b. Make sure you keep to your agreed budget meeting.
3. c. At your budget meeting, review your expenditure against income and adjust if need be.

It doesn’t happen overnight and it may take a few months to get it right. However, as you get more on top of things, you may be pleasantly surprised to discover you enjoy your budget meetings.

Loans for Couples

Most couples will need to take out a loan at some point. Therefore, part of budgeting is agreeing on when and what type of loans you will take out as a couple. This is important to discuss ahead of time, as some loans are riskier than others.

To decrease your cash loan risk, consider a Gold Collateral Loan. Coughlans has over 110 years of experience in offering Gold & Gold Jewellery collateral loans to couples. Using the gold or gold jewellery you already own, to access a personal cash loan or business loan, can better safeguard you in times of uncertainty.

Visit one of the three Coughlans’ stores today to discuss your Gold & Gold Jewellery collateral loan options.

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