personal finance structuring

Hi again reader,

Before Al and I got married, our accounts were totally separate. We had a number of conversations about whether or not to combine our finances, and to what extent. At the time, we ultimately decided to keep one or more accounts in our individual names, and then open joint accounts from which we would pay bills.

Since we’ve recently started digging into our finances, I’ve become increasingly frustrated with the way that we’ve been managing our accounts, so we decided to make some changes, and things are now structured like this (some of this has changed, and other parts have remained the same over a long period of time):

  • Joint credit card: This is the card we use the most, where we get our cash back, etc. We pay off all of our credit cards every month. We also have a Lowe’s card (only ever used at Lowe’s) and will soon be closing another credit card.
  • Joint checking: This is where we pay our bills from, including the joint credit card. Auto-payments for recurring expenses come out of this account. We both contribute to it from our personal checking/savings (see below).
  • Joint emergency savings: This is for true emergencies. We are establishing a goal that’ll allow us to pay at least 3 months of our mortgage plus a bit more. We may up it in the future to include more expenses, but for the short term (and because we have the next account), we’re not going to include all monthly expenses.
  • Joint house savings: This account allows us to save for house projects. In the past, we’ve just waited to do larger projects until our joint checking filled up enough, but we wanted to be much more intentional about the way that we do these projects. We will contribute to this account regularly, and when we have a project that we want to tackle, we’ll deplete it (by using our joint credit card and paying it off with this account so that we get the cash back) and then rebuild it.
  • Personal/individual checking and savings accounts: My paycheck gets deposited into my personal checking account, and then I divvy up the money for the above-listed accounts. After each paycheck, I keep a few hundred dollars in both my personal checking account and also my savings. If I use my Target debit card to save 5%, it comes out of my checking, and I use my personal savings for things like buying gifts for my husband. I honestly don’t keep track of the intention of his personal accounts, because he’s very diligent about transferring the money and never misses paying bills; however, I can see these on Mint if I need to.

We can see everything on Mint.com, with the exception of Bo’s 529, since that’s not money for us. All of our accounts (checking, savings, credit cards), debts (just our mortgage right now), investments (our 457b deferred compensation), property/assets, etc. can be seen by both of us. I think it works really well for us.

Do you manage your own finances, share responsibilities, or split the responsibilities? I am always curious as to how others manage their personal finances! Do you have questions or suggestions for us? Drop a comment below, reader!

Cheers,
Mel

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