Comments on: How to Mix Money When Moving in Together http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/ Personal Finance Blog Sat, 19 May 2012 23:23:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Megan http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-8712 Megan Thu, 10 Feb 2011 06:37:16 +0000 http://blog.quizzle.com/?p=603#comment-8712 It is immpossible to determine what the "right" thing to do is for everyone. Each situation is different and requires a different way of looking at things. Even certain bills like cable tv, may not be split fairly if a 50/50 split is done. Say one person spends all their free time watching tv and can't live without premium channels which raises the bill to $150/month, while the other flips on the weather channel once or twice a week and rarele ever watches anything else. It would not really be fair to say that each person should pay half of that bill now would it? Same goes for the water bill. If one person showers twice per day, leaves water running while brushing their teeth, flushes a tissue down the toilet everytime they wipe their nose and so on, and the other is very water conscientious, it would not be fair to split that bill either. The only bill that can really be fairly split 50/50 would be the rent or mortgage because both people live there and should be equally responsible for keeping the roof over their head! My opinion is throw all the monthly income into a joint account and figure out what is extra after all the bills are paid and then divide that up accordingly. If one person makes twice what the other does then they can have twice the left over money, but at least both people are guaranteed spending money and no one feels inadequate. It is immpossible to determine what the “right” thing to do is for everyone. Each situation is different and requires a different way of looking at things. Even certain bills like cable tv, may not be split fairly if a 50/50 split is done. Say one person spends all their free time watching tv and can’t live without premium channels which raises the bill to $150/month, while the other flips on the weather channel once or twice a week and rarele ever watches anything else. It would not really be fair to say that each person should pay half of that bill now would it? Same goes for the water bill. If one person showers twice per day, leaves water running while brushing their teeth, flushes a tissue down the toilet everytime they wipe their nose and so on, and the other is very water conscientious, it would not be fair to split that bill either. The only bill that can really be fairly split 50/50 would be the rent or mortgage because both people live there and should be equally responsible for keeping the roof over their head! My opinion is throw all the monthly income into a joint account and figure out what is extra after all the bills are paid and then divide that up accordingly. If one person makes twice what the other does then they can have twice the left over money, but at least both people are guaranteed spending money and no one feels inadequate.

]]> By: glen http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-5689 glen Sun, 16 May 2010 20:12:56 +0000 http://blog.quizzle.com/?p=603#comment-5689 yes i agree with the 50/50 split even thow i make alot less than she does. In the long run if you truely care about each other, money should not be an issue. However yes i agree that a person should always have thair own account. and be able to have a treat or buy some they had thair eye on. but monthly bills should be a joint responsabilty not just left up to one person to do it all. heck may as well be sigal then right??. glen h. yes i agree with the 50/50 split even thow i make alot less than she does. In the long run if you truely care about each other, money should not be an issue. However yes i agree that a person should always have thair own account. and be able to have a treat or buy some they had thair eye on. but monthly bills should be a joint responsabilty not just left up to one person to do it all. heck may as well be sigal then right??. glen h.

]]> By: Lou http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-5489 Lou Tue, 04 May 2010 13:17:05 +0000 http://blog.quizzle.com/?p=603#comment-5489 keep what is seperate, seperate like it says I am still recovering from my first marriage where all we had was one joint account for almost nine years, even after my wife cleaned out the account and left automatic monthly payments came out and I was responsible for the bills and overdrafts on the account, having all "our" money gone made for a long recovery and a lot of scrambling around to get things fixed. Always have your own money also. keep what is seperate, seperate like it says I am still recovering from my first marriage where all we had was one joint account for almost nine years, even after my wife cleaned out the account and left automatic monthly payments came out and I was responsible for the bills and overdrafts on the account, having all “our” money gone made for a long recovery and a lot of scrambling around to get things fixed. Always have your own money also.

]]> By: Meghan http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-5451 Meghan Mon, 03 May 2010 20:57:21 +0000 http://blog.quizzle.com/?p=603#comment-5451 My boyfriend and I just moved in together. We did everything listed in this article. We do make very differnt incomes, with him making over double what I make. He does contribute 2/3 or the joint expenses, with me only covering 1/3. We considered a 50/50 split, but that left me no spare income for savings, or the occasional treat (like a pedicure). At the end of the day, we decided we didn't care about the money. We could do it either way, but he felt that a split based on income was fair. The most important thing was we were together, building a future. If you stop looking at your partner as a free ride, and start lookng at them as a partner- then the money doesn't matter and you make it work however you have to! P.S. He moved into (what was) my house which I could afford well before we started dating. He's actually paying alot less for a 3 bedroom house than he used to for a 1 bedroom apartment- and we're together. He may pay more of the expenses now, but the benefits far outweigh the costs- and he's spending less than he used to for something nicer. My boyfriend and I just moved in together. We did everything listed in this article. We do make very differnt incomes, with him making over double what I make. He does contribute 2/3 or the joint expenses, with me only covering 1/3. We considered a 50/50 split, but that left me no spare income for savings, or the occasional treat (like a pedicure).

At the end of the day, we decided we didn’t care about the money. We could do it either way, but he felt that a split based on income was fair. The most important thing was we were together, building a future. If you stop looking at your partner as a free ride, and start lookng at them as a partner- then the money doesn’t matter and you make it work however you have to!

P.S. He moved into (what was) my house which I could afford well before we started dating. He’s actually paying alot less for a 3 bedroom house than he used to for a 1 bedroom apartment- and we’re together. He may pay more of the expenses now, but the benefits far outweigh the costs- and he’s spending less than he used to for something nicer.

]]> By: Tim http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-3334 Tim Wed, 24 Mar 2010 22:33:53 +0000 http://blog.quizzle.com/?p=603#comment-3334 For those who don't understand why it should not always be a 50/50 split, consider this: Your significant other earns $100,000 per year and you make $25,000. They want to live in a large house and drink $500 bottles of wine with dinner each evening. Though you theoretically get the same use of the house and wine, is it fair for you to end up spending 100% of your check every week because they have expensive tastes? If you ever split up, you start over with nothing; you have no savings and haven't been able to work on your personal credit. For those who don’t understand why it should not always be a 50/50 split, consider this:

Your significant other earns $100,000 per year and you make $25,000. They want to live in a large house and drink $500 bottles of wine with dinner each evening. Though you theoretically get the same use of the house and wine, is it fair for you to end up spending 100% of your check every week because they have expensive tastes?

If you ever split up, you start over with nothing; you have no savings and haven’t been able to work on your personal credit.

]]> By: Tuan http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-826 Tuan Mon, 01 Feb 2010 22:22:47 +0000 http://blog.quizzle.com/?p=603#comment-826 1. I totally agree that couples do need to discuss the money issues before cohabitation or marriage. 2. The above calculation could be explained this way: Person A's income is $2,000, which is 40% of the total income ($2,000/($2,000 + $3,000)). His or her proportional contribution to the total expense is: $2,000 * 40% = $800. For person B, his/her contribution is the shared expenses less the partner's contribution, which is $1,200 ($2,000 - $800). After contribution, person A has $1,200 left, which is 60% of the take home income ($1,200/$2,000). For B, he/she has $1,800 left, which is also 60% of his/her income ($1,800/$3,000). Both people retain 60% of their income after shared expenses. Could this arrangement be considered "fair"? Some slightly off the topic thoughts: 1. In the above example, the difference between a "50/50" and a "proportional" split is $200 a month, or $6.67 a day. Should couples bicker about a few dollars a day in real life? If they do, what does it really say about their focus and goal, and ultimately where is their relationship heading? 2. Emotional well being is very important in a couple's relationship. How can it be factored in this whole benefit-contribution equation so that both can feel as equal partners? 1. I totally agree that couples do need to discuss the money issues before cohabitation or marriage.

2. The above calculation could be explained this way: Person A’s income is $2,000, which is 40% of the total income ($2,000/($2,000 + $3,000)). His or her proportional contribution to the total expense is: $2,000 * 40% = $800. For person B, his/her contribution is the shared expenses less the partner’s contribution, which is $1,200 ($2,000 – $800).

After contribution, person A has $1,200 left, which is 60% of the take home income ($1,200/$2,000). For B, he/she has $1,800 left, which is also 60% of his/her income ($1,800/$3,000).

Both people retain 60% of their income after shared expenses. Could this arrangement be considered “fair”?

Some slightly off the topic thoughts:
1. In the above example, the difference between a “50/50″ and a “proportional” split is $200 a month, or $6.67 a day. Should couples bicker about a few dollars a day in real life? If they do, what does it really say about their focus and goal, and ultimately where is their relationship heading?

2. Emotional well being is very important in a couple’s relationship. How can it be factored in this whole benefit-contribution equation so that both can feel as equal partners?

]]> By: Rooks http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-825 Rooks Fri, 29 Jan 2010 21:35:05 +0000 http://blog.quizzle.com/?p=603#comment-825 Yes, it's really fair that each contribute 50% of the total if they share the benefits equally. Why should the one making more money be punished because his or her significant other makes less? If exibit A makes 2000 a month, and exibit B only 1000, why should A pay 2/3rd of everything? How can you justify that? "He/she makes twice as much money than me, so he/she pays for his own food, and 1/3rd of mine, his/her own rent and also 1/3rd of mine, etc... But I'm independant, really ! I pull my weight, sort of..." Yes, it’s really fair that each contribute 50% of the total if they share the benefits equally. Why should the one making more money be punished because his or her significant other makes less? If exibit A makes 2000 a month, and exibit B only 1000, why should A pay 2/3rd of everything?

How can you justify that? “He/she makes twice as much money than me, so he/she pays for his own food, and 1/3rd of mine, his/her own rent and also 1/3rd of mine, etc… But I’m independant, really ! I pull my weight, sort of…”

]]> By: Smug http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-824 Smug Thu, 28 Jan 2010 18:35:46 +0000 http://blog.quizzle.com/?p=603#comment-824 Jamie, Are you getting the same benefits from the joint expenses as your bf is? (you no doubt are). If so, why on earth should he be paying more than 50%, simply because he makes more? Jamie,

Are you getting the same benefits from the joint expenses as your bf is? (you no doubt are). If so, why on earth should he be paying more than 50%, simply because he makes more?

]]> By: Jamie http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-823 Jamie Thu, 28 Jan 2010 16:11:12 +0000 http://blog.quizzle.com/?p=603#comment-823 My boyfriend and I have been struggling with this. He makes significantly more than I do yet we pay the same. I think we both agree he should pay more, but he also has significant debt tied up in properties right now due to the market. How should we account for past debt when calculating the ratio to make it stay fair? My boyfriend and I have been struggling with this. He makes significantly more than I do yet we pay the same. I think we both agree he should pay more, but he also has significant debt tied up in properties right now due to the market. How should we account for past debt when calculating the ratio to make it stay fair?

]]> By: Lindsey http://www.quizzle.com/blog/2009/12/how-to-mix-money-when-moving-in-together/#comment-822 Lindsey Thu, 28 Jan 2010 15:34:17 +0000 http://blog.quizzle.com/?p=603#comment-822 what would be the danglers contribution to the monthly expenses. what would be the danglers contribution to the monthly expenses.

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