Steps In Developing A Shared Financial Plan & Budgeting System

Creating a shared financial plan and budgeting system can bring both clarity and cooperation to managing your household finances. Here's a step-by-step guide to help you and your husband (or anyone you share finances with) build a plan that works for both of you:

Step 1: Assess Your Current Financial Situation

• Income: List all sources of income, including salaries, side jobs, or other passive income.

• Expenses: Track all current monthly expenses (e.g., rent/mortgage, utilities, groceries, transportation, insurance, savings, etc.).

• Debts: Identify any outstanding debts, like credit cards, loans, or other financial obligations.

• Assets: List any assets, like savings, investments, or property.

Step 2: Set Clear Financial Goals

• Short-Term Goals (within 1-2 years): Emergency savings fund, paying off debt, vacations, etc.

• Medium-Term Goals (3-5 years): Saving for a home, funding a child’s education, or a car purchase.

• Long-Term Goals (5+ years): Retirement savings, large investments, or financial freedom.

• Discuss your goals with your husband to make sure both of you are aligned on priorities.

Step 3: Create a Budgeting System

There are several budgeting methods, but the key is consistency and simplicity. Here are a few options to consider:

• 50/30/20 Rule:

  • 50% of your income goes to necessities (housing, utilities, food, transportation, insurance).

  • 30% goes to discretionary spending (entertainment, dining out, hobbies, etc.).

  • 20% goes to savings and debt repayment.

• Envelope System: This method involves putting cash into envelopes designated for different categories (e.g., groceries, entertainment, savings). Once the envelope is empty, no more spending happens in that category.

• Zero-Based Budgeting: At the start of each month, assign every dollar of your income to a specific category until you reach zero. This method ensures every dollar is accounted for and can be particularly helpful for paying down debt.

• Digital Tools: Consider using budgeting apps like YNAB (You Need A Budget), Mint, or PocketGuard to help track your expenses and create a system that updates automatically.

Step 4: Determine Each Person's Contribution

• If both you and your husband are working, determine how much each of you will contribute toward shared expenses.

• If one person earns significantly more than the other, you might decide to contribute proportionally (e.g., based on income). Alternatively, you might opt for a 50/50 split depending on what feels fair to both of you.

• You may want to maintain individual accounts for personal spending but combine shared expenses into one account for ease of management.

Step 5: Set Up a Savings and Emergency Fund

• Emergency Fund: Aim for 3-6 months' worth of expenses saved up for unexpected events like job loss or medical emergencies.

• Retirement: Open and contribute to retirement accounts like a 401(k) or IRA to plan for the future.

• Other Savings Goals: You may also have other savings goals such as travel, a new car, or home renovations.

Step 6: Track and Review Progress Regularly

• Monthly Check-Ins: Schedule a regular time (e.g., once a month) to review your budget and financial goals. Check if you're on track with savings, expenses, and any debt repayment.

• Adjustments: If necessary, adjust your budget for lifestyle changes or unexpected costs. Make sure you’re both comfortable with any changes.

Step 7: Communicate Openly About Finances

• Keep communication open and honest about any financial challenges, concerns, or successes. Discuss big purchases, changes in income, or financial setbacks as a team.

• Be patient and understanding—working together on finances can be stressful, but it can also bring you closer.

Example Budget Template:

Income:

• Your Salary: $____

• Husband’s Salary: $____

• Other: $____

• Total Income: $____

Expenses:

• Mortgage/Rent: $____

• Utilities: $____

• Groceries: $____

• Insurance: $____

• Transportation: $____

• Debt Repayment: $____

• Entertainment: $____

• Savings (Emergency Fund, Retirement): $____

• Miscellaneous: $____

• Total Expenses: $____

Net Income (Total Income - Total Expenses): $____

This system can evolve as your financial situation changes. The goal is to have a structure that works for both of you, ensures your needs are met, and helps you build a secure financial future together.

Contact Bee Blissful if you would like to dive deeper into any specific relationship issues,