AIBU to think that this financial arrangement make sense or is way too complex?!

(66 Posts)
ComposHat Mon 29-Jul-13 18:03:13

Right here goes....

Just got married and both DW have roughly similar incomes (I am doing a PhD and have bursary, she works full time)

Until we got married, we had totally separate bank accounts (for a variety of reasons, but mostly because we have very different attitudes to money and spending habits. One saver and one spender)

Both of us world feel resentful of the other if the finances were totally shared, they'd be mutual accusations of 'running through the money and having nothing left to buy milk' or 'being deprived because the other is a tight bastard.' Neither of our approaches to money is right or wrong, just different and not reconcilable. We'd both feel our independence was being compromised and for us, everything in a joint account, isn't really an option.

Equally it is becoming a faff with joint expenses,such as the weekly shop. rent and utility bills, as we have to keep constant track of who owes who what.

So this is what I've come up with.

Our wages/bursaries continue into our personal bank accounts.

We each pay the same amount into a joint account for food, bills, rent/mortgage, council tax etc. (say £450 each) at the start of the month.

Whatever is left at the end of each month in the joint account is then transferred into a joint savings account.

That way we have three lots of money

1) Our personal accounts (our own to do with as we like)
2) The joint current account (for day to day purchases)
3) The joint savings account for expensive long term purchases such as furniture or as a 'rainy day fund'

Does this seem a bit convoluted and over elaborate? DW seems to think it will be harder to keep track of what money was where and making sure there was enough in each account.

Any thoughts or alternatives would be gratefully received!

bumbleymummy Tue 30-Jul-13 09:54:13

Sounds fine to me.

WilsonFrickett Tue 30-Jul-13 10:03:34

I'm another one who seconds premium bonds rather than savings, certainly while interest rates are so poor. We win around £25 almost every month, which is more than we'd get in interest. And they're a little bit harder to get your hands on the money - you have to do a bank transfer rather than just going to an ATM, which is a good thing in my book!

ComposHat Tue 30-Jul-13 10:58:30

premium bonds - what an excellent idea!

CheeseandPickledOnion Tue 30-Jul-13 12:10:25

That's exactly how me and my DH split things and it worked really well for us.

TeenAndTween Tue 30-Jul-13 12:20:26

I think it is fine, and is how DH and I are set up.

However you need to discuss what if incomes differ, or one disappears. You are a unit, if you have no income during phd write up, your wife or joint savings should support you.
Similarly if 3 years down the line your wife goes on maternity leave, you / joint savings should support her.

I would suggest putting in proportionate to your income (so now you both put in the same). And also putting in a bit more to build in the buffer you need for your phd write up, and later children ( planned or otherwise.

I also think car should come out of joint, it is a household necessity (to enable you to get to work).

tomverlaine Tue 30-Jul-13 12:26:44

we have the same - although we put in a disproportionate amount (which has varied over the years). You may want to consider joint credit card as well for big one off expenses.
Also make sure you know what joint expenses consist of- eg can you buy birthday presents from it?

AnythingNotEverything Tue 30-Jul-13 12:38:48

Sounds sensible to me. It's actually probably simpler than how we do things, but DH is a spreadsheet geek.

I think separate spending money is key if you have different attitudes to money. DH would check his statement every day, whereas I'm a bit more laissez-faire, and keep a rough track of spending in my head. I never go over my mogul budget, but it drives him mad that I don't know how much money is in my account! It also means I can buy gifts and haircuts without having to justify the cost, and he can do the same with golf.

chubbymomie2012 Tue 30-Jul-13 12:41:24

I think it sounds sim,e enough. infact might be tempted to steal the blue print!

ComposHat Tue 30-Jul-13 12:49:34

steal away chub

Alohomora Tue 30-Jul-13 13:00:39

Sounds entirely reasonable to me. I'm a spender, DH is a saver, we have debt to pay off and are saving for a house deposit. He earns about twice what I do.

Wages go into our own accounts, monthly money to cover bills/petrol/rent goes into shared account (what each person pays is calculated percentage wage as he earns more).

It works for us and means I curtail my spending. If we go out we share the bill, though - I always get confused/impatient when we go out with friends who live together and there's kerfuffle cause one person doesn't have enough change for their coffee and the other won't cover it.

nkf Tue 30-Jul-13 13:02:42

If you do the joint pot, separate fun accounts, how dovyou pay for going out to dinner together?

EllieQ Tue 30-Jul-13 13:03:05

That's exactly what we do - we have a joint account for all household costs (from mortgage to pet insurance), and a joint credit card which is paid off in full each month. All household shopping (groceries, house stuff, joint entertainment eg cinema tickets) go onto the credit card (except bits of top-up shopping like bread or milk which would be paid for in cash).

We've worked out how much needs to go into the joint account to cover monthly expenses, including a monthly amount for anything that's paid quarterly/ yearly, and the average monthly amount on the credit card, and after payday we each pay our share into the joint account (currently 50:50 as we earn the same, but has varied).

This works well as we know that whatever is left in our own accounts is our own money to do whatever we want with! If there is a more expensive month on the credit card, we can put extra money across at the start of the following month to make sure there is enough in the joint account to cover it.

If we have children and there are far more monthly expenses, we might switch to pay going into the joint account and 'personal cash' being moved from that into our own accounts, to make it easier.

EllieQ Tue 30-Jul-13 13:04:26

nkf going out for dinner together would probably come from the joint account, unless one of us was treating the other eg: Birthdays.

Viviennemary Tue 30-Jul-13 13:05:36

That sounds fine to me. It is a bit over-complicated but it can still work as long as you are both earning similar amounts and have more or less the same fixed expenses like travel to work and so on. When it doesn't work and causes resentment is when one person earns vastly more than the othe partner and both partners have to pay equal share of expenses. Not on.

pizzaqueen Tue 30-Jul-13 13:10:00

This is exactly what me and DP do. Works well for us.

DontmindifIdo Tue 30-Jul-13 14:26:43

NFK - dinner together for us, is either the joint account or one of us treating the other, or if we're paying cash, go halves. More often than not DH treats me as although we set it up to have roughly the same 'fun money' each month, he gets paid for overtime so often will have slightly more than me, but then he puts more in our savings account, so we normally end up spending the same on ourselves. (We didn't set the budget to include bonuses or overtime on the grounds that neither are garenteed money, we tend to save both, unless we have specific big things to get with them, eg. DH bought an annual rail ticket with his last bonus, the one before he stuck on over paying on the mortgage.)

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