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,

Tips For Discussing Financial Expectations & Concerns

When discussing financial expectations and concerns, it can be helpful to approach the conversation with openness and clarity. Here are some points to consider:

1. Set Clear Expectations: It's important to be on the same page about how finances will be handled. Who will contribute, how much, and towards what expenses (e.g., rent/mortgage, utilities, groceries, savings)?

2. Identify Concerns: If there are financial worries (such as debt, savings, or differing spending habits), it's crucial to acknowledge them openly. Whether you're concerned about long-term security, budgeting, or specific financial goals, having a clear discussion about your worries can prevent misunderstandings later on.

3. Create a Plan: Once expectations and concerns are addressed, you can work together to create a financial plan that works for both of you. This might involve creating a budget, setting financial goals (such as saving for retirement, a vacation, or a home), and determining how to track progress.

4. Maintain Flexibility: Life is unpredictable, and finances often need to be adjusted along the way. Having a flexible approach to handling money can help ease tension when things change.

5. Respect Each Other’s Values: People often have different values when it comes to money—whether it's saving for the future, spending on experiences, or enjoying the present. Understanding and respecting each other's perspectives will help foster harmony.

6. Regular Check-Ins: It's helpful to have regular discussions to check in on financial goals, make adjustments if necessary, and ensure you're both still comfortable with the financial arrangements.

If this conversation feels difficult, especially after your time apart from your husband, being patient and keeping the focus on shared goals and understanding can go a long way.

Contact Bee Blissful if this aligns with what you're dealing with financially right now, counseling can help you work on solutions.

Improving Communication Around Money Management

Improving communication around money management is essential for a healthy relationship and a successful financial plan. Here are some strategies to help foster better communication and understanding when it comes to finances:

1. Be Transparent

• Share all information: Both you and your husband should feel comfortable sharing your full financial picture—income, expenses, debts, and savings. This openness helps create a shared understanding of your financial situation and prevents surprises down the road.

• Discuss Financial History: If one of you has financial baggage (e.g., debt, poor spending habits), it's important to acknowledge it. Acknowledging past struggles can help build empathy and find solutions together.

2. Set a Regular Financial Check-In Time

• Monthly or Bi-Monthly Meetings: Set aside time each month (or every other week) to discuss finances. During these check-ins, you can review your budget, check your progress toward financial goals, and discuss any changes in income or expenses.

• Make it Routine: Setting up a regular time to talk about money can take the pressure off and make the conversation feel more like a part of your regular life rather than an occasional "big talk."

• Stay Positive: Focus on positive progress. If you're saving more or paying off debt, celebrate those wins. Even if things aren’t perfect, it’s important to acknowledge the work you're doing together.

3. Set Common Goals

• Align on Priorities: Having shared financial goals (e.g., saving for retirement, building an emergency fund, paying off debt) helps ensure both partners are working toward the same vision.

• Divide Goals into Actionable Steps: Break down larger goals into smaller, achievable steps. For example, if you want to save for a vacation, create a specific budget for it and track your savings every month.

4. Use Neutral, Non-Accusatory Language

• Avoid blaming or criticizing language. Instead of saying, "You always spend too much on gadgets," try, "I feel a bit concerned about our discretionary spending. Can we talk about how we can manage it better?"

• Be mindful of your tone—approaching these conversations with understanding and patience can help avoid defensiveness.

5. Create a Safe Space for Discussion

• Money can be an emotional topic, especially if one partner has financial anxiety or a history of poor financial decisions. Approach the conversation with care, and ensure that both partners feel heard and respected.

• Avoid criticism or judgment. Instead, focus on solutions and working together.

6. Use Visual Aids (e.g., Budgeting Tools)

• Sometimes it’s easier to discuss finances when you can visualize where the money is going. Use spreadsheets, budgeting apps, or even a simple whiteboard to track your financial progress and goals.

• Tools like Mint, YNAB (You Need a Budget), or EveryDollar allow you to track income and expenses and make sure you're both on the same page.

7. Respect Each Other’s Money Values

• Recognize that people often have different views on money—whether it's about spending, saving, or investing. Acknowledge these differences and work to find common ground.

• Respect each other’s approach to finances. If one person is more comfortable with saving and the other with spending, try to balance your goals while understanding the different mindsets.

8. Create a Shared Money Management Plan

• Define roles clearly: Who is responsible for paying bills? Who will handle investments or savings accounts? Assign tasks based on strengths and preferences.

• Involve both partners in decisions that affect both of you, like major purchases, budgeting for vacations, or deciding on investment strategies.

9. Address Issues Before They Escalate

• If you notice a spending problem or financial worry arising, discuss it as soon as possible. Don’t wait for it to become a bigger issue.

• If you disagree on something, focus on listening first before responding. Acknowledge the other person’s concerns and work towards a solution together.

10. Celebrate Milestones Together

• When you reach financial goals or milestones (e.g., paying off debt, reaching a savings target), celebrate together. This reinforces teamwork and motivates both of you to keep working towards future goals.

11. Stay Flexible

• Understand that life happens—unexpected expenses, job changes, or other life events can affect your financial plan. Be ready to adapt and adjust as needed. Keeping an open dialogue about changes helps both partners stay aligned even when life throws curveballs.

12. Seek Professional Help if Needed

• If there are ongoing financial challenges, consider seeking help from a financial advisor or counselor. A neutral third party can help you both navigate complex financial decisions and offer strategies for communication and budgeting.

By making communication around money a regular, supportive, and structured part of your life, you’re more likely to feel confident about managing your finances together and reduce any potential stress or misunderstandings. Would you feel comfortable having a regular financial check-in with your husband,?

Contact Bee Blissful today to learn tips on how to approach it in couples therapy.