algebra?
Mister Ant and I are putting our finances together. For us, that means checking our credit reports, figuring out how a joint account could benefit us, and working together on debt reduction (mostly student loans and the mortgage) and savings for long-term goals. I actually had to do some algebra! We now know what percentage from our respective checks is enough to take care of household expenses. It’s a different dollar amount for each of us, because we have different salaries, but it’s the same percentage, so neither of us gets burdened more than the other – or in other words, a fifth is a fifth, a quarter is a quarter, or a third is a third for either of us. Our percentage is 32%. This means that 1/3 of our collective net monthly income pays all the household bills, so if each of us put 32% of our income in a joint account, it would cover things like the mortgage, household incidentals, utilities, entertainment, etc. This would leave us with 2/3 of our net monthly income to divvy up for savings, debt reduction, and a spending allowance.
That’s just the beginning, though. We should also have to figure out a percentage for joint savings goals, once we nail down a joint debt reduction plan. The days of splitting bills like roommates are over. Soon, our joint checking account will be paying our bills, instead of one of us reimbursing the other for their share of paid bills. But this takes a while, with all the other things we’re busy with to distract us. There’s lots of scribbling, and lots of communicating. But it will all be worth it. Our opinion is that money should be the last thing we have to worry or argue about as a married couple if we’re proactive and smart about our money management.
Mister Ant is happy I’m blogging again. He wanted me to tell you guys Hi!
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3 Responses to “algebra?”
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I am also happy to see you back again. Welcome back Sistah!
I’m glad to see you’re still plugging away, DC!
I’m happy you’re blogging again too.
I really enjoy reading your blog. Your’e such an intelligent person with a very refreshing and informative writing style. Yes, welcome back!
Thanks, Finomenal!
I’m glad to see you back as well. I like your joint money management plan. I think where a lot of couples go wrong is they don’t pool their finances when they marry…if they only knew how much further ahead they could be if they did that.