Discuss Loose Spending
Loose spending consists of small purchases you normally would not track (items that only cost a few dollars). These expenses add up over time and may account for a large portion of your budget that is not accounted for. It is a good idea to set aside an amount each person will be allowed to spend each month without receiving feedback from the other about their purchases. The amount should be equal for each person and may change as income fluctuates. If this does not seem to be working, setting up two different discretionary accounts may be another solution.
Budget
The key to a healthy financial situation can be found in a budget. Outlining spending needs and directing them into separate categories will show and help track how funds are being dispersed. A budget will need to be created by both parties and input from both sides provides for the best outcome.
All opinions and suggestions should be considered during the budgeting process. A budget may take a few months to iron out, and should be adjusted accordingly until the proper budget has been obtained.
When income or spending fluctuates, it is a good idea to rework the budget to reflect the new circumstances. A savings category should be included so that you may begin building an emergency fund (at least three months expenses).
Financial Personalities
What kind of financial traits does your significant other carry? Is s/he a spender or a saver? Do they manage a checkbook? Begin to analyze details on their spending and savings habits, because soon they will be reflected on your joint account. The past often carries into the future, and one way to prepare for the future is to exchange credit reports, especially if you plan on buying a home or car with one another. You may obtain a free copy of your credit report at www.annualcreditreport.com. It has been noted in the past that one person may withhold credit history information because they feared being judged negatively.
