Here Are The Best Ways to Budget as a Couple
                     H E R E A R E T H E B E S T  
W A Y ST O B U D G E T A S A
C O U P L E
B Y L E V E L F I N A N C  I N 
G

Budgeting as a couple can feel like a daunting task at first.  
That’s because both partners must agree on a shared way 
to  manage their finances.
However, when it’s done right, budgeting as a couple can 
be  a very effective tool to save for future goals, pay off  
previously accumulated debt, and generate wealth in the  
long term. h It also strengthens the collaboration spirit,  
which may be positive for the health of your relationship 
too.
In this article, we will focus on the best ways to budget as 
a  couple and reach every financial goal together.
Sitting down with your partner and having an initial discussion 
about  your finances and goals is the first step when budgeting 
together.
Money can bring a lot of stress to your relationship, so having 
an  open and honest conversation about it is paramount to 
avoid  starting on the wrong foot. First, list each component of 
both  partners’ income situation, such as:
paychecks  
business revenues 
 side gigs
financial investments;  
real estate 
investments:  other 
investments;
gifts from relatives
Then, it’s time to list all expenses, both shared and individual, and  
divide first into needs (essential costs like health insurance 
premiums)  and wants (discretionary costs like a gym subscription). 
You should  also divide them into regular costs (e.g., monthly 
expenses like  renting an apartment) and variable expenses (e.g., 
groceries and  skincare products). Subsequently, you should list all 
your current  debts, such as:
credit card 
debts;  student 
debts;  
mortgages;
car loans;  
personal loans;
After listing all aspects of your personal finances, it’s time for the  
same important evaluations. Decide which parts of your finances to 
 keep separate and which you want to combine. Some couples 
may  decide to integrate every aspect of their finances, while 
others may  prefer to keep some things separate. Obviously, 
shared expenses  (like electricity bills and rent) should be 
managed jointly. However,  certain aspects of your personal 
finances (like one of the two  partners saving for a trip with 
friends) may be managed individually.  It would be best if you also 
discussed opening a joint bank account  or keeping separate ones. 
The discussion should consider both  your checking account and 
savings account. Some couples decide  to both keep their old 
separate account and open a new joint one.
You should also set short-term and long-term financial goals 
together.  It’s essential that both partners agree on these goals and 
that they are  realistic. The following list contains several possible 
short-term goals.
Building up an emergency fund with three months of living 
expenses  saved up.
Start investing in a retirement account, like a 401(k)or IRA.
Setting aside money for a vacation or special event (e.g., wedding 
or  honeymoon).
Making sure both partners have life insurance coverage in 
case  something happens to either one of them.
Establishing joint savings accounts for future purchases like 
buying  an hour or a car together.
Taking advantage of tax breaks for married people.
Let’s now look at a list of potential long-term goals.
Paying off all previously accumulated debts.
Creating an emergency fund with at least six months of 
living  expenses saved up.
Grow wealth over time by investing in stocks, bonds, 
mutual  bonds, and other investments.
Planning for college tuition expenses for your children.  
Establishing long-term care insurance plans to cover 
potential  medical costs in old age if needed.
Creating wills and trusts to ensure that assets are distributed  
according to the couple’s wishes after the death of either  
partner and that any dependents are taken care of if 
necessary.
Zero-based budgeting could be a very effective budgeting method for  
couples, as it assigns every dollar a purpose. This method requires you 
to  create a monthly budget plan and assign every dollar of income to 
an  expense category or a savings goal.
Envelope budgeting is another suitable method for couples. It involves  
assigning each budget category a certain amount of money in an 
envelope  and spend only that much on the corresponding type of 
expenses. This  method helps to control impulse purchases and stick to 
the budget plan.
50/30/20 budgeting is a very popular budgeting technique. It suggests  
assigning 50%  of your income to your needs (essential expenses like  
housing or groceries( and 30%  to your wants (discretionary expenses 
like  entertainment and travel). The remaining 20%  should go towards 
savings,  investing, or other financial goals.
70/20/10 budgeting puts a greater emphasis on financial 
goals.  70% of income is spent on needs, 20%  on debt 
repayments, and  10% on savings and investments.
80/20 budgeting is more flexible than the previous two methods, 
 and it involves assigning 20%  of your income to your savings 
and  then spending the rest freely. The goal of this budgeting 
technique  is to ensure that you’ll set aside a certain amount of 
money each  month, no matter what.
You should also review your budget method regularly to 
check  whether it’s helping you improve your personal 
finances or  whether another method may be more effective.
T H A N K Y O 
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