Hey Money Minder,
I just wanted to share how my fiancé and I manage our finances. She brings in about $27k a year, which is around $2k net per month, and I make $81k. Her income goes towards things like food, shopping, and saving for our budget-friendly wedding. We’re almost done paying off our credit cards and plan to avoid using them again to save even more money.
We divide everything into separate accounts, as shown in the second picture. Our bank automatically transfers funds bi-weekly, and everything is set to autopay, making our financial management a breeze. I know it might sound a bit over the top, but this system works wonders for us. It helps us control our spending, get out of debt, and keep everything organized. Some of our accounts may look low at the moment due to recent mortgage and bill payments, but rest assured, we have other savings tucked away in a different account with a higher interest rate.
Thanks for all your help so far!
Retired and Thriving
Response from THE MONEY MINDER:
Hello There,
Congratulations on your progress in paying off credit card debt and taking control of your finances! It’s evident that you both have a clear plan in place to manage your income and expenditures effectively. Setting up separate accounts for specific expenses is a practical approach that works well for many couples. By automating transfers and bill payments, you’re taking the proactive step to ensure financial stability and avoid the temptation to overspend.
Considering your fiancé’s income and your combined efforts towards savings for a wedding and controlling spending, it’s commendable how diligently you’re working towards your financial goals. It’s crucial to continue this disciplined approach, especially once the credit cards are fully paid off, to avoid falling back into debt. By channeling the money saved from credit card payments into savings or investments, you can further secure your financial future.
Additionally, exploring higher interest savings options for your emergency fund or other savings accounts can maximize your returns over time. This shows prudence in managing your finances and planning for the long term, which is essential for building financial stability and achieving your goals.
Overall, your dedication to financial responsibility and your commitment to staying debt-free is truly commendable. Keep up the good work, and remember that small steps towards financial security today can lead to a brighter financial future tomorrow. If you have any further questions or need advice on enhancing your financial strategy, feel free to reach out. Farewell from THE MONEY MINDER.
