When it comes to marriage, we’re told that we have to value compromise, and nothing has turned out to be truer. I’ve found that compromise is the only way that two people with their own thoughts and opinions can comfortably work wit
h one another toward a common goal. One of the most important topics that we compromise and work on every day is our finances.
Of all the money management ideas that I’ve tried, I can say that the envelope system works especially well for my husband and me. The reason is because it’s easy, it’s predictable, and it helps to build good habits.
If you’re unfamiliar with the envelope system, it was popularized by none other than the personal finance guru Dave Ramsey. Essentially, you operate on a cash only basis, splitting up your paychecks into different categories and placing them into envelopes. (You can also purchase cute fabric envelops if you want to be environmentally friendly.)
Here are our categories:
Rent
Car Payment
Gas
Dates
Food
Oops!
Yes, we do have a category that says Oops!That’s what we use if we run out of money in one of the other envelopes! The only envelope that we typically burn through is Food.We often get tired after a long day at school/work, and we want to go out to eat to make our lives easier. We either need to budget a little more for food or cut the eating out habit a little more! We’re working on it, but that’s why the envelope system works for so many people. It shows you where you need to improve, and it helps you to remain accountable.
Some couples like to have an extra envelope for spending money, but when I set up the envelopes every month, I put a little bit of cash in my wallet and my husband’s wallet. This is for little things throughout the month that aren’t big enough to merit their own category. Because we use this system, we both feel like we have control over our financial future. We also feel like we are equal, because both of us are getting the same amount of money put in our wallets for incidentals.
This also builds a great sense of teamwork. While I typically have the envelopes in my possession, we both know that they’re there. We both know that we have limits and that every day we make choices on how we want to spend our money.
While every couple is different, I think it’s important to note that we still use a debit card for many of our monthly bills. For example, I always pay my student loans and cell phone bill with my card online. This is just an easier and more convenient form of payment for us. However, it’s the same payment every month so it’s very easy to budget.
Essentially, you can customize this system in whatever way suits your needs best. I know that there are many other ways you can organize your finances with your spouse. Many people have fun money accounts. Others concentrate more on using credit cards to build points. However, what’s important is that you and your spouse are both on board with your method of organizing your finances. For us, this system works best.
How do you and your spouse budget and organize your monthly expenses?
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Written by Catherine Alford
Catherine Alford is a freelance writer who currently lives in the Caribbean with her husband and spoiled pup, Julep. She received a B.A. from The College of William and Mary and an M.A. from Virginia Tech. When she is not writing for various personal finance websites, she enjoys sharing her frugal and fabulous adventures on her blog, BudgetBlonde.com.
