AARP: “5 Steps to Successful Budgeting as a Couple: How to create a spending plan you both can live with”
AARP, March 24, 2022 — Marguerita Cheng, CFP® Pro, is featured in today’s article by Patricia Amend, who writes: “A well-conceived, well-tested household budget plan is the cornerstone of any sound financial strategy. Without this important tool, it’s difficult, if not impossible, to work toward a happy and secure retirement. Now may be a good time to create that plan or revisit the one you have, especially with inflation at a 40-year high. Supply-chain issues and the war in Ukraine are also increasing the uncertainty about the prices of goods and services. If only you could convince your partner of the wisdom of making a budget.”
As hard as you try, Patricia explains, it’s tough to agree on how to allocate the resources you have between you.
She turned to Marguerita for insight.
“Think yours, mine, and ours,” Rita insists, noting that as you track your flexible spending, don’t make your budget too limited or suffocating for your partner. “This may make the plan a point of contention, complicating your relationship. Realize that each of you has individual needs, interests, and priorities, as well as goals as a couple.”
Rita knows this is especially important if you’ve married later in life, or for a second time and have blended your families. “You or your partner may think that too much cashflow is being directed toward priorities that compete or are unnecessary. Your budget needs to allow for these differences. Thinking yours, mine, and ours can be helpful. That can apply to hobbies, as well. One spouse may be into cars. The other may think that’s frivolous and expensive.”