Today we're going to be talking about relationships and money. You know the smoochy, smoochy, lovey-dovey type of relationship. Maybe you've tied the knot in this year's hectic wedding season, maybe you're a seasoned vet of 18 years, like me, maybe it's on your to-do list, or maybe it's not - and that's okay too.
Money is a part of your everyday life, so it's gonna be part of your relationship. When we get into a relationship with someone, they basically compliment us, and oftentimes they're going to be different from us. They will have a different view of financial management, and they are going to have different views of daily spending.
You likely have had arguments surrounding, "You overspend. No, you overspend." I have had enough of those to know that we need an easier way to get that conversation out of our relationships - especially with inflation nipping away at the money available. With concerns about work, and credit card debt creeping up it's easy to blame the other person, the house.
AFIREFI is all about stress-free financial home management - and no one really is like, "Oh, I wanna be a great home financial manager." It's that we want the opportunity to live intentionally. Freedom takes boundaries. So, that's why we are sharing our 4 steps to build boundaries so that you have freedom as an individual in your relationship.
Step 1: Every member of the household has unaccountable play money
That's the money that you're going to have, that you don't have to answer to anyone for.
Step 2: Figuring out how much money that is, and deciding it before it gets spent
Figuring out how much that money is before it gets spent, not after, and the credit card debt to contend with and where that is, is how you decide that amount of money. To figure out this number, head over to Budgeting Basic: Creating a Budget That Works.
Hopefully, there's 30% of your income left for it. However, that money may be 1% or maybe it's a negative number. If it's that low, you have to double back into your essentials and start looking for ways to trim.
Step 3: Once you have that amount, then have a discussion and decide how you're gonna divide it
Do you each take 30% and then have a 30% joint account that you use for maybe a vacation together? Maybe 10% of it goes to kids, or it goes into your home to update your home decor.
Step 4: Be open-minded
I'm sure you'll get to an easy conclusion. Once everything is paid, you fund each of those accounts in the portion that you have decided.
So, it's four really easy steps, and if you need more help on this subject you can go back to our podcast budgeting episodes.
Stay tuned for more episodes on how you could use AFIREFI to manage your money stress-free!