Having shared finances has its advantages, from being able to split mortgage repayments to applying for joint borrowing. However, both you and your spouse will still have personal expenses that you may want to keep separate, such as a phone contract or other monthly subscription. Whether you choose to have both incomes crediting a joint bank account, or you both have separate accounts and a further bills account, managing your money is essential. This is especially true if you jointly run a business together, which adds a whole layer of complications to managing finances.
To help, here are some top tips for managing dual incomes and keeping on top of your bills.
Keep On Top Of Essential Bills
Having two incomes to manage means more outgoings to think about, so planning how all bills will be maintained should be a priority. You’ll want to ensure there are no issues with making mortgage repayments or other household bills that are essential for living, so determining how much both of you will need to set aside from your income is a priority. You’ll also want to consider unexpected expenses and what you will do in this scenario. Fortunately, if you were tight on money for one month and need to pay an emergency bill, sites such as Quid Market for a bad credit loan. They can quickly help and provide affordable short-term options. This way you can factor in any loan repayments along with other essential bills together.
Track Spending
If your full income goes into a joint account, it can be difficult at a glance to know how much of your own income you have spent. If you wanted to pay for personal items, you’ll want to keep track of who is spending what. No one wants to disagree over matters involving money, but if either you or your spouse are spending freely and not keeping track, the strain can soon show. The best thing to do is regularly check your statements online and track how much you are spending each week. This way you can compare and start to budget if necessary to curb this. Many finance apps can help you do this easily and see exactly where your money goes each month.
Create Standing Orders for Bills
There is nothing worse than suddenly remembering you needed to pay a bill, with the penalty for late payments on bills sometimes involving a charge or a negative impact on your credit file. To avoid this happening, it is best to set up standing orders or direct debits so that you won’t miss any bill payments. They will automatically leave your account when due, so long as you have enough credit in your account. Having bill payments setup will allow you to keep track of what you actually spend each month on certain items and avoid manually remembering to pay them each time.
Keep a Savings Goal
One of the most overlooked aspects of managing joint finances is ensuring you have money going into savings. You can easily focus on what bills you have to pay and forget to put some away just in case. Creating an emergency savings fund is ideal for this, as you can put however much you can afford into it weekly or monthly. Slowly over time, you will have a fund that you can rely on when the unexpected occurs if one of you lost your job for example, or become ill and couldn’t work. Aiming to keep a savings goal will also avoid reliance on further borrowing in the future.
