STEPHEN & MICHELLE SMALENBERGER, EA & CFP ®

We’ve found four to five common hesitations that people have about merging their finances together related to cash flow.

Common Hesitations:

1. Loss of control:  It’s not just my money that I can decide where to spend.  We are both contributing to our income and we need to consider our expenses together.
2. Accountability:  I can’t just spend what I want because someone else is watching me and may question my choices.
3. Unequal Income amounts:  If one person earns more than the other then each person may feel differently about how they can spend money.
4. My own system:  We each handled finances differently and now I have to adopt a new way or system that you’re used to.

What are some steps to move beyond these hesitations?

1. Create an inventory of your accounts:  Look at all your accounts you each currently have and which ones should be kept for which purpose?  Whether these are checking or savings accounts decide which to keep or close.
2. Decide which account will become your day to day account that you function in for income and spending.  Decide where you want to have a savings account. Maybe you want it at the same financial institution or a different one to make it less easy to access so the funds aren’t spent.

• Come up with compromises to accomplish what you want to do together with the separate things you’re now combining.
• You can have various savings accounts to keep track of goals separately.

3. Categorize your spending so you can start to set goals together.

It’s encouraging to see your progress as you start making decisions together.  You begin to realize that you are a team; not individuals competing against one another.