How we split our finances.

After interesting discussions with numerous couples as to how they split finances I have come to realize that there is definitely not a one size fits all solution . In my opinion there is no ‘right’ way as to how money should be split - a system should work for both parties and not leave anyone feeling resentful.

Since open discussions about money and finances are still considered taboo and not necessarily something that we openly discuss with our friends and family, I thought I would share how we split finances in our household and what has worked well for us.

Here is a summary of how we divide up our income:

• we each receive $500 per month to do whatever we like with. This money goes into our individual accounts and is used to pay for personal discretionary items such as clothes, make up (me), geeky gadgets (hubby), gifts for each other and eating out when we are not together (lunch at work, brunch with the girls)

• any bonuses goes to the person that earned it and can be spent on whatever they like guilt free

• the rest of our income goes into a joint account and this is used to pay for our investments and savings, all our shared expenses, whatever individual expenses we mutually agree to be paid from the joint account

Why this system works for us:

• combining money prompts us to work together and helps us reach our goals faster

• we actively participate in reviewing our expenses and goals together and both of us are kept accountable

• we still have the freedom to spend a certain amount of allocated money however we like

How do you split finances in your household? What works and doesn’t work for you?