Senator Counsellors Best Budget Ideas for Couples
Some of married couples’ best memories are those of barely getting by in a month, when they sat together late at night by gas lamp, putting their money together and trying to map out their finances and future. It is good but difficult times. Are you a couple in that same position right now? We have a budget idea for you that will make things a bit easier for both of you.
- Map out your household expenses as a couple on a piece of paper
Be very specific. Include rent, groceries, petrol, your emergency fund, water and electricity and so forth. Remember to include your entertainment allowance as a couple, not money to go drink with your work colleague while your partner sits at home.
- Divide your total amount of expenses by two
This way you will see the amount of money each of you needs to contribute in order to afford everything. Now keep this amount on the stick side, we’ll get back to it.
- Map out your personal expenses
Take all of your personal expenses such as medical aid and loans and subtract that from your income in order to calculate your net income. Subtract your half of the contribution worked out in number 2 from your net income.
Net income – contribution = disp. Income for personal use. Use this money wisely throughout the month.
- Combine your contributions in number 2 and put the money towards each expense in a separate envelope
The most responsible party must divide the money into separate envelope labelled petrol, food, water and electricity and so forth. Store the envelopes in a safe and use when each payment comes along. Keep the till slips of each transaction and place it in the envelope to keep track of your spending.
- At the end of the month, sit down and do the bookkeeping
Look at how much money is left and if you’d like you can keep it in the envelope, especially the food and petrol ones, or save it for something else. The leftover cash can also be re-divided between the two of you as a form of refund.
This way you both can see how much money actually gets spent and saved, you both contribute equally and both of you have an equal say in the household finances. It is a great way to strengthen trust between the two of you.
- Takeaway tip:
If you have bills that can only be paid online, one person can pay the amount while the other reimburses a percentage of that amount in cash towards the envelope fund. Example, say your total expense budget is R10 000 and person A chose to pay the rent of R8 000, person B can add R4 000 extra to the budget. This means person A only then has to add his R1 000.
Debt between you and your partner can put a strain on your relationship. Fall in love with the idea of a debt free life. Contact Senator Counsellors via email on: fin@senatorgroup.co.za or give us a call: 012 654 0107 and let us relieve some of your stress.
