How to Manage Money as a Couple | Joining Our Finances

what’s up everybody I’m Rob I’m Reshawn
and this is Learn Hustle Grow if you are interested in all things money real estate and
travel this is the place for you we’ve been discussing the things we feel
have been most impactful in our ability to become financially free at least
enough to take a year off work and travel the world in this video we will
discuss joining our finances when two people are falling in love it’s rare
that they discuss things like managing money together when we shine and I met
we were both working professionals in our 30s before we were married
we reviewed credit reports and outstanding debts y’all I know how
romantic we just wanted to approach our relationship eyes wide open if you know
our story you know that our marriage was the union of a spender and a saver one
of us hated debt the other wanted to be a real estate mogul needless to say we
had very different views on how to manage money prior to getting married we
created a convoluted plan of percentages on how to manage our finances keeping
everything separate we were not married for very long before we realized that
this plan would not work for us it’s rare that two people with different
careers will earn the same income someone will earn less someone will
always earn more it’s important to remember that the breadwinner could
always change when income levels are different how will you address debt and
household responsibilities is it fair to split everything 50/50 when one party
comes up short does the other one loan the money do you expect them to pay you
back in a marriage when finances are separate do you discuss major purchases
like cars and real estate investments for us it just made sense to join our
finances making this decision did not come easily
we were both accustomed to doing whatever we want it with our money
I had never been married before and feared the worst what if he came home
with a boat a motorcycle or even a big-screen television the content in
Dave Ramsey’s Total Money Makeover saved our marriage we actually listen to it in
the audio format we cannot imagine the fights we would have had about money
without this valuable tool yes now we still fight we just don’t fight about
money as you can imagine when you’re married there are plenty of other topics
to fight about after finishing the Total Money Makeover we were pumped neither of
us had ever received any type of education on personal finance both of
our mothers struggle to make ends meet as single parents like most people when
it came to money we were just winging it the book gave us
the tools we needed to create a plan to put us on the path to debt freedom we
modified that plan to focus on building wealth simultaneously so how do we do it
we created a workable plan with shared bank accounts that allowed us both to
see the big picture we use the following to attack debt and savings with shared
focus first we use online banking tools to track our spending these tools are
free with most large banks we needed to know what was going in and what was
coming out second in addition to a monthly spreadsheet we also had a
spreadsheet that tracked our debt and how soon it would be before we could pay
off third we had a monthly meeting to review our spreadsheet eventually that
monthly meeting became quarterly fourth we agreed to have allowances for
individual spending money with the exception of an allowance all money was
deposited into a joint checking and savings account number five we agreed to
be accountable to one another any household purchases over $100 would be
discussed if the purchase does not benefit the household then it comes out
of your allowance some examples would be brunch or spa days or electronics or
video games so you might ask what does this look like
we begin with five account household checking all funds began here to
individual checking accounts where we hold our allowances the emergency
savings account which began with $1,000 and eventually became six months of
living expenses and finally our goals savings this is where we saved for
travel a new car or even a new house recognising that money can be a huge
source of tension in the marriage we feel that making the decision to join in
our finances helped put us on the path to financial freedom we were married
April 26 2009 and we opened our joint accounts on June 1st 2009 if you have
been married for a while with separate finances we understand that this
decision may seem a bit scary keep in mind that both prayer and a lot of
communication were required in order to get us to this point the first step is
to have a conversation regarding both your shared and individual goals so what
do you want to accomplish together why are you working what’s your endgame do
you want to start a business do you want to buy a house well maybe you want to
invest once you define your goals they’ll be easier to see the benefits of
combining your finances over the course of any relationship you will be provided
with a number of opportunities to make decisions that will impact your
long-term financial future in this video we shared the importance of the decision
to join our finances we hope you found it helpful if so we would love to hear
from you if not why not that’s all we have for now
thanks for stopping by until next time this is learning hustle grow

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