For variable expenses like restaurants, you can do a rough estimate which can be changed in later steps. Get each expense and the dollar amount in it’s own line. You can start with your individual expenses, such as your personal transportation costs, money for personal meals and shopping. Some expenses are recurring, while some are one-off expenditures.įocus on getting everything down on a page, or a simple spreadsheet. It’s time to think of basically anything and everything you spend money on individually and as a couple. Get all of your personal and joint expenses down This will allow you to start tinkering with your plans for achieving all the goals you’ve laid out so far. You’ll need to identify all sources of income: wages and salary, bonuses, rental income, government grants and subsidies, gifts, tax credits etc. Your available income forms a bedrock for your budget. You might even want to chat with a financial planner (or a KOHO Financial Coach!) about how you’ll meet all of your savings goals. You’ll need an emergency fund, of course, and then retirement savings.
Couple financial planning how to#
Savings: If you and your sweetie are in it for the long haul, you’ll need to work together to figure out how to save for it. The great thing about this account is that the government will match 20% of your contributions up to $500 per year, and there are other grants you can apply for on top of that. As soon as they are born, you can start participating in a Registered Education Savings Plan (RESP), to fund their future education costs. Budgeting for a life with kids is easier if you start saving up before they actually arrive. They’re cute, but incredibly resource-intensive. (And, of course, before you apply for a mortgage, it might be a good idea to take a peek at your credit scores and see if you need to prioritize improving it first.)Ĭhildren: Ah, the costs of raising children. You can use a mortgage calculator to help estimate these costs. While the housing market is what it is, it’s also important to think about more than just the cost of closing in on your dream home–insurance, legal fees, moving costs, and furniture. Who doesn’t love love? But it’s not cheap! If you’re not already hitched and it’s something you want to do, thinking ahead of time about when you might get married and how much you might spend is a good idea.īuying property: For many Canadians, homeownership is the number one dream. Traveling together: What type of joint and individual travel budgets do you want to set? Financial experts often suggest 5% of your income, but it’s totally a personal preference.Ī wedding: Getting married can be an incredible, life-affirming move. Paying off an existing debt/loan: Paying off your debts - especially credit card debt, but also student loans, or lines of credit - should be a priority for any couple. Here are some of the goals that might give shape to your joint budget: And knowing that you both want the same things makes it easier to save together- prioritizing your savings will have you both feeling financially and emotionally invested in the success of your relationship. Getting on the same page is crucial for managing the stress that comes with making decisions about money. Setting up a life together comes with lots of big, exciting things. You’re more likely to achieve those goals if you keep your plan realistic. The first and most important step in building a budget together is to determine your financial goals. Decide on your financial goals, both individually and as a couple. Steps for effective budgeting as a couple: 1. Even if it’s not exactly fun, there are ways to make budgeting more effective and less daunting. Talking openly to your partner about money and what you want out of life is crucial for planning joint projects (do I hear wedding bells?) and for feeling secure together. Now we both feel like we’re on track, individually and together. Okay, so it’s not exactly romantic to sit down and make a budget together, but it’s an important thing to think about-and, yes, it can be surprisingly intimate (and rewarding!) to create goals together and work toward them.īuilding your life with someone will involve bumps, and creating a joint budget is no different- my husband and I decided to get serious about our financial health right around the time we found out we were expecting our first baby, and it was definitely … an experience, to say the least.īut I’m so glad we figured out our monthly budget. Congratulations, you’re in love! And you’re moving in together-that’s awesome.
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