Finances are intertwined with success in any relationship. Issues about money are one of the communications you and your spouse must have to avoid disagreements.
Put everything in the open and communicate about your saving and spending habits. With the right financial plan, you and your partner will be on your way to financial freedom.
Here are five easy ways to save money as a couple to help you get off on the right financial foot.
1. Opening a Joint Savings Account
You’ll need joint savings account to keep your money. The good thing about a savings account is that you’ll earn interest on your savings.
Your money will continue growing in the savings account. If you want to save the same amount monthly, use a standing order from your individual bank accounts.
2. Create a Budget
Creating a budget will go a long way to managing your money as a couple. Sit together and determine the amount you’ll spend on monthly expenses.
Once that is ready, you have to allocate the budget depending on your collective earnings. A budget helps keep track of how you spend your money and avoid unnecessary spending.
Budgeting is a touchy subject for most couples, but you can have fun while doing it. Here are steps to follow when creating a budget.
List Your Collective Income Sources
It is of utmost importance to know how much money is available to cover your monthly expenses. The first item on your budget should be your income.
List the income you and your partner expect to receive during the budgeting period. Include all your income sources such as rental income, bonuses, side-hustle money, dividend income, and royalties.
List Your Household Expenses
Once you have calculated your total income, the next thing is to list the expected expenses. Some expenses will remain the same from month to month.
The common household expenses include housing, insurance, food, medical expenses, entertainment, transportation, personal care, and household supplies. Group your expenses into categories to make your budget organized.
Estimate How Much You’ll Spend on Each Item
The total cost of your expenses will not be the same every month. It, therefore, is crucial to review the amount whenever creating a budget.
Estimating your expenses allow you to see the items you can reduce from your budget. Taking an average of the amounts you have spent in the previous months is an excellent way to come up with an estimate.
A three-month average is an excellent starting point for the next month. Make sure you come up with a realistic budget that both of you can afford. If your expenses exceed your income, you need to reduce some items. If it is less, then put the additional money into savings.
Track Your Expenses
Tracking your expenses is a vital part of budgeting. You’ll need to know if you are within your budget. You and your partner can track expenses using budgeting apps or a shared spreadsheet.
3. Track Your Savings
You and your partner should review your progress against your goals to stay on track. Tracking your savings will enable you to see how much you need to save to reach your target. If you are falling behind on your savings, look for ways to cut your budget.
4. Set Goals Together
Setting a goal is one of the ways to save money as a couple. It not only gives you an aim but allows you to save faster.
Your goals can include topping up your emergency fund or saving for a home deposit. You can decide on the goals and start saving towards them. Your goals can include:
- Medium-term goals that are achievable within one to five years
- Short-term goals achievable in one year
- Long-term goals achievable in more than five years
5. Have a Savings Plan
When creating a savings plan, you have to sit down together and decide on how much to save. Will you each save a specific amount every month, or will it be a percentage of the income?
It is important to keep that in mind when you want to achieve your goal. If your goal has a deadline, you need to know how much you should save to reach your savings target on time.
Paying the money directly to the savings account will prevent you from spending it accidentally. You should put away at least 20 percent of your monthly income into a savings account.
If that is not possible, then any amount will still help. The most important thing is to have a saving habit. If any of you gets a bonus, you can add something extra to your joint savings account.
With the above ways to save money as a couple, you’ll get started on the right financial foot. Being on the same page about your finances will make you feel united as a couple.
About Risper Onyango
Risper is a personal finance writer and founder of Financial Freedom Kenya, a blog focused on helping people manage their finances. She creates engaging and conversational content that increases search engine visibility. You can find her on LinkedIn.
