Tweet
I am always facinated how couples choose to pay or break up their monthly bills between them.
First off, we always pay ourselves first and have pre-tax 401K money withheld from our bi-weekly paycks so we don't even see the cash. Then we pay our bills.
For example, my DH and I have done various things over our 18 yrs together:
Plan "A" (which didn't work too well for us)
One checking account where HE paid all the bills (sometimes late) followed by a period of time where I paid all the bills. Although it was helpful to share the responsibility, we were both often writing checks out of the same account for incidentals and unexpected expenses which led to overdrawn accounts. Balancing the checkbook was a nightmare as we had to maintain two ledgers.
Plan "B"
Two checking accounts (our paychecks are directly deposited into each of our separate accounts), each with overdraft protection (just in case
).
He makes 3x what I make, so he agreed to Pay the big bills and those that had the potential to vary greatly from month to month.
DH Pays:
Two credit card accounts paid in full monthly (Verizon/groceries/gas/medical co-pays/perscriptions/car repairs, etc.);
Cell phones (put on the credit card so we get 1% cashback);
Mortgage;
Monthly college housing & bi-annual tuition, books, for my daughter (also paid on ccard so we get 1-5% cashback)
I Pay:
Cable/Hi-speed internet,
Land-line phone,
Church pledge,
Utilities (paid on budget plan so the cost is same ea. mo.),
Car insurance for 3 cars (paid monthly)
$260/mo for food/incidentals to my daughter at college,
$260/mo for kids' savings accounts (ING and Roth-IRAs).
$125/mo christmas savings fund
$100/mo Foreign travel expense savings for my college daughter
Plus any out-of-pocket incidentals, school fees, movie rentals, eating out, gifts, etc. (e.g., $15/wk - one special school lunch for ea. kid per wk)
In addition, the family's $184 medical insurance through my employer is withheld pre-taxed from my paycheck monthly.
* * * * * * * * * * * *
I have a written Monthly Budget (nothing fancy, just a table in WORD) listing my anticipted regular bills. I automatically pay my bills using my bank's on-line billpay (no cost, and they lick the stamp for free!). The bi-weekly deposits into savings are automatically transfered to my ING account on payday from my checking account (I set this up as an automatic savings plan on ING's web page).
I personally don't maintain a written checkbook ledger, but prefer my WORD budget (lists my written checks) and on-line banking ledger.
My DH still preferrs to pay his bills by writing checks the old fashioned way and licking the stamp. It gives him some comfort to see the bill in the mailbox I guess. He is a mathematician, so his checkbook is always balanced to the penny.
Aside from some (fluid) cash in the low-interest checking, any money left in our respective accounts after the bills are paid are moved into our separate ING high interest savings (we each got $25 to open the account, and I got $10 more for referring him).
I don't have a lot left over after I pay my bills. My DH does have money left over, and saves quite a bit toward home improvements, family vacations, and emergency funds.
It's understood that this extra $ is "ours," not his or mine. We just "manage" it seperately so we can keep track if it all.
Together we assess best ways to save and invest.
First off, we always pay ourselves first and have pre-tax 401K money withheld from our bi-weekly paycks so we don't even see the cash. Then we pay our bills.
For example, my DH and I have done various things over our 18 yrs together:
Plan "A" (which didn't work too well for us)
One checking account where HE paid all the bills (sometimes late) followed by a period of time where I paid all the bills. Although it was helpful to share the responsibility, we were both often writing checks out of the same account for incidentals and unexpected expenses which led to overdrawn accounts. Balancing the checkbook was a nightmare as we had to maintain two ledgers.
Plan "B"
Two checking accounts (our paychecks are directly deposited into each of our separate accounts), each with overdraft protection (just in case
). He makes 3x what I make, so he agreed to Pay the big bills and those that had the potential to vary greatly from month to month.
DH Pays:
Two credit card accounts paid in full monthly (Verizon/groceries/gas/medical co-pays/perscriptions/car repairs, etc.);
Cell phones (put on the credit card so we get 1% cashback);
Mortgage;
Monthly college housing & bi-annual tuition, books, for my daughter (also paid on ccard so we get 1-5% cashback)
I Pay:
Cable/Hi-speed internet,
Land-line phone,
Church pledge,
Utilities (paid on budget plan so the cost is same ea. mo.),
Car insurance for 3 cars (paid monthly)
$260/mo for food/incidentals to my daughter at college,
$260/mo for kids' savings accounts (ING and Roth-IRAs).
$125/mo christmas savings fund
$100/mo Foreign travel expense savings for my college daughter
Plus any out-of-pocket incidentals, school fees, movie rentals, eating out, gifts, etc. (e.g., $15/wk - one special school lunch for ea. kid per wk)
In addition, the family's $184 medical insurance through my employer is withheld pre-taxed from my paycheck monthly.
* * * * * * * * * * * *
I have a written Monthly Budget (nothing fancy, just a table in WORD) listing my anticipted regular bills. I automatically pay my bills using my bank's on-line billpay (no cost, and they lick the stamp for free!). The bi-weekly deposits into savings are automatically transfered to my ING account on payday from my checking account (I set this up as an automatic savings plan on ING's web page).
I personally don't maintain a written checkbook ledger, but prefer my WORD budget (lists my written checks) and on-line banking ledger.
My DH still preferrs to pay his bills by writing checks the old fashioned way and licking the stamp. It gives him some comfort to see the bill in the mailbox I guess. He is a mathematician, so his checkbook is always balanced to the penny.
Aside from some (fluid) cash in the low-interest checking, any money left in our respective accounts after the bills are paid are moved into our separate ING high interest savings (we each got $25 to open the account, and I got $10 more for referring him).
I don't have a lot left over after I pay my bills. My DH does have money left over, and saves quite a bit toward home improvements, family vacations, and emergency funds.
It's understood that this extra $ is "ours," not his or mine. We just "manage" it seperately so we can keep track if it all.
Together we assess best ways to save and invest.
Restricting ourselves to plastic means that there's no change to worry about, and I get a complete picture of where every penny has gone.
<-- DD wanted me to include those.
Comment