As part of this move, my partner and I are combining finances for the first time.
Because we’re both planners and perhaps overly fond of Google Docs, we’ve spent a good amount of time discussing our financial habits and priorities, and wrote it all down in one document as our Baby Family Financial Plan. There’s a lot in there, but here I’m just going to talk through our financial principles and joint budgeting system.
You know how all those financial advice places tell couples to come up with a financial mission statement? Well, we did that. Here are our financial principles:
- We aim to 1) maintain a level of discretionary income that allows us to lead full lives without worrying about money; 2) build wealth for our family’s long term financial security and the pursuit of impactful business opportunities; and 3) provide for and support each other and our baby family while still maintaining a healthy level of personal and financial independence.
- We will review our current financial status and financial plan together at least once every 12 months (all checking, credit card, investment and retirement balances, as well as loans, leases and mortgages).
- Pilot: We aim to spend 50% of our pooled income on needs, 30% on wants, and at least 20% on savings and retirement. We aim for our housing and home maintenance costs to not exceed 25% of household income.
What do you think?
*What is a baby family? Check out the discussion on one of my favorite blogs.