How To Create A Couples Budget Template In 5 Key Steps
While you may have a budget for your own individual finances, it can also be important to create and manage a budget as a couple.
1. Review Your Financial Goals Together
The first step is likely to review and align your financial goals as a couple and plan for the future. Depending on the status of your relationship or how long you've been together, you may both be coming into the relationship with totally different ideas about money and finances. Talking with your partner about money is a good first step to make sure you're both moving in the same direction.
2. Use A Shared Budgeting Template
You can easily stay on the same page with your budget when you use a shared budgeting template. The Rocket Money℠ app allows users to plug in their monthly expenses and set up a manageable budget for free.
Using a shared budget template is one of the best ways to budget as a couple. It provides easy access to each other’s expenses and income and helps couples quickly spot what they may need to tweak to reach their mutual financial goals.
3. List All Your Combined Income
Next, you'll want to list all your combined sources of income along with how often you get paid. Here are a few possible forms of income to consider:
- Regular salary
- Tips
- Bonuses
- Side hustle income
- Royalties
If you are on a salary or have regular hours at your job, identifying your income is fairly straightforward. If you rely on tips or otherwise have irregular income, it can make things more complicated. In that case, just do your best to estimate your income. You can also consider looking at how much you've earned over the past few months to get an educated estimate.
4. Break Down All Joint Expenses
Next, it's time to break down and list all the joint living expenses you share as a couple. It can be helpful to divide your expenses into two different categories — needs and wants:
Needs
Needs are absolute necessities that you can't live without. While we often think of these as physical needs, there may be emotional, mental or psychological needs. Here are a few budget items commonly thought of as needs:
- Utilities
- Food
- Insurance and deductibles
- Transportation costs
- Loan payments
- Clothing
Wants
Wants are "nice to have" but probably not essential to your absolute survival. Here are some examples of common “wants” in a budget, including but not limited to:
- Going out (restaurants, movies, etc.)
- New clothes or accessories
- A wedding
- Entertainment
- Gym memberships
5. Save And Invest The Difference
Once you've identified your monthly income and expenses, it's time to analyze them. If your expenses are higher than your income, then you'll want to look through your budget and find ways to cut expenses or increase your income. Hopefully, though, your income exceeds your expenses. In that case, make a plan to save and invest the difference, either by creating an emergency fund, saving for retirement or investing wisely in other assets.
