Some costs are cut in half if you live together. But there are also some traps and there is always a potential for conflict. With these seven saving tips you can keep an eye on your finances and avoid disputes at the same time.
As a couple living together, you share the cost of living such as GEZ, rent, electricity, WiFi. You can save a lot in this way, but disputes quickly arise if the circumstances are not cleared up. Who pays what? And how much? It can get tricky, especially when one person earns more than the other and perhaps has higher demands on their home, vacations or leisure activities.
This is where relationship investors come in. Marielle and Mike share on both their blog and Instagram @relationshipinvestors valuable insights on the topic of “managing finances as a couple”. We have put together some tips for you.
7 savings and finance tips for everyday life
1. Keep a budget book
Keep a budget book in which you enter all your expenses. In order to maintain an overview, it makes sense to keep receipts etc. It will be even easier if you pay as much as possible by card. Then you always have an immediate overview of how much is going on for what. An Excel table is sufficient as a simple overview, so you have the expenditure right in front of your eyes, and it quickly becomes apparent where the construction sites are and where savings can be made.
2. Money talks are important
When we were young, we were often taught: You don’t talk about money. This is total nonsense, at least think the relationship investors. They are convinced that communication is the be-all and end-all when it comes to money. You can have money conversations in a relaxed atmosphere, such as at dinner or a walk. Reviewing last month’s expenses creates a basis for potential plans for the next month. In addition, it makes sense to discuss early on how you would like to handle joint purchases or larger expenses, for example the furniture division in the event of a separation.
3. Weekly shopping and family packs
It is best to do a big purchase only once a week and avoid small shopping trips during the week. This way you will not be tempted to buy unnecessary items and you will immediately save money and time. It can also make sense for two to use bulk packs, which are usually cheaper than single sizes. Only be careful with fruit and vegetables or other fresh foods, because throwing food away is neither sustainable nor economical.
4. Free time and vacations
Leisure activities and vacations are often cheaper as a couple, as you can divide the cost of accommodation such as the hotel room by two. The 2: 1 voucher booklets are a real insider tip. These are available for many cities, and they include great restaurants and activities where you only pay for one person at a time and the other can come for free.
5. Combine insurance
Insurance companies are lame? Maybe, but you can still save here. As a couple living together, you can simply merge some of your insurance policies – no, you don’t have to be married for that.
For which insurances is this possible and also useful? Definitely for household insurance and private liability insurance. The former insures all items that are in the common household. The latter insures damage caused to third parties.
6. Large wage differentials
Differences in salary create potential for conflict. Here again it is important to talk about it, because a solution can only be found together. It is important to clarify: which lifestyle do you agree on? Do you prefer to orientate yourself on the salary of the lower earner or do you meet in the middle? And how are the costs then divided? Does the person who earns more take on a larger share, or do you stick with the 50:50 model?
According to Marielle and Mike, couples should ask themselves these questions sooner rather than later and talk about them from time to time if wishes and needs change. Otherwise, a dependency or imbalance quickly arises, which in turn can have a negative effect on the partnership.
7. Joint wealth accumulation
For joint investments, be it a purchase, real estate, shares or the like. According to the relationship investors, the motto is: “If you can’t agree, don’t do it!” As soon as only one person wants to make the investment, the person should either not do it or only do it for himself (i.e. not from the common money). So your discussions like “You have gambled our money!” out of the way.
For the mutual accumulation of assets, the best thing to do is to get a joint deposit that both of you have 100 percent access to. It can also be useful to set up a set of rules so that both are always clear about why investments are being made or not.
If you want to know more about the topic, take a look at the Relationship investors past.
Sources used: madamemoneypenny.com, finanz-heldinnen.de, rela- tion investors.de