If you and your partner have decided to combine finances, it’s time to start taking steps to make it happen. Continuing open and honest conversation will be an important part of this process, so you should plan to work together or check in with each other as you’re going through these steps.
Bills & Debts
Once you’ve agreed on whose name is going on each bill, you’ll need to decide how to track them. Using an app or creating a cloud-based spreadsheet such as Google Sheets allows you and your partner to access and update the document as needed. Be sure to include columns that identify the company being paid, the amount, who is responsible for making the payment, and the due date so you can easily track your progress each month.
Goals
Define what success looks like for each goal you’ve set. For example, if you’ve decided on building an emergency fund, you’ll have to agree on what that means. Are you aiming to cover three months of expenses to keep you afloat? Six months? Longer? Then, determine how you’re going to track it. To streamline your recordkeeping, you could include this in your bill spreadsheet mentioned above.
Future Plans
Make sure you’re on the same page about timelines for future plans such as buying a home or starting a family. These are both big commitments that require a lot of planning, financial and otherwise. Set timelines and open any related accounts (i.e. a savings account specifically for your future home’s down payment).
What If…?
While it may seem depressing to consider the “what if” scenarios like break-ups, divorces, unexpected illness, or death, it’s important to make sure you’re prepared if one of these situations occurs. Make appointments with legal or financial advisors or professional counselors to complete any necessary paperwork and work through the process together.
Benefits
Gather information from both of your human resources departments and review the plans and policies. Figure out how to maximize your benefits and make sure you’re aware of deadlines for enrolling in benefits so you don’t miss out. Many companies offer a limited period of time after a “life event” such as marriage or the birth of a child to make the change. After that, you’ll likely have to wait until your company’s next open enrollment period.
Set the Date(s)
In addition to setting a timeline for when you want to have your finances fully combined, set dates for discussing your finances. These times should be focused on reviewing your financial situation and determining if your plan is working for you. Decide how often you want to have these talks and commit to them once they’re scheduled. It may not sound fun, but it’s practical and can help address concerns upfront before they cause problems or resentment in other areas of your relationship and life.
Want more tips on how to combine your finances? Check out visit our Resource Center to find more money management tips.
Read Part I – Having the Money Talk with Your Partner
Read Part II – 9 Things to Consider When Combining Finances
The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.