Kylie & Mike Gymsplain Couples Combining Finances
On this episode of Financially Naked: Stories from The Financial Gym, Mike Poulin and Kylie Lipinski, two DC-Based Level Two Certified Financial Trainers, are here to Gymsplain couples finances. In addition to working as Financial Trainers, they are both married but manage the finances in their relationships differently. Kylie and Mike discuss communication, logistics, and options for managing your money as a couple.
Podcast Notes
A personal finance journey is like a road trip. Regular listeners and Financial Gym clients are familiar with this analogy. If you think about a cross-country road trip, there are many ways that trip can happen. When you're married or have a partner with joint goals, think about being on a road trip together.
There are many ways to manage a couple's finances; the key is finding what works best for you and your family.
One way to manage joint finances is the 'One-Pot Method.' The benefits of this method are:
You don't have to manage two budgets or Venmo each other back and forth.
There is transparency among the couple, as everyone has access to the same accounts.
If you're struggling to get on the same page financially with your partner, and things are separate, the one-pot method can help bring clarity.
Not all accounts have to be joint or shared. There can be shared accounts with each person's individual accounts for their personal spending or goals. It doesn't have to be all or nothing when combining finances.
You can also have separate accounts and, with excellent communication, work on your joint goals together. Mike and Kylie are both married and manage their finances a bit differently.
Kylie and her husband keep their accounts separate and are authorized users for the travel hacking value on certain cards. They sync up with each other to ensure they're on track as a couple. It's worked for them for eight years. The key when you have separate accounts is to have strong communication. They split their expenses based on their income.
Mike and his husband have been married for six years. At the beginning of their relationship, they didn't talk about finances like they do now. They kept things separate, which made things incredibly difficult for them logistically. Combining their finances made managing and talking about their money more seamless, as they could get on the same page. They use a version of the one-pot method that works well for them.
One of the biggest fears when combining finances is keeping your autonomy and the desire for privacy. You can find a system that accommodates these needs with some joint and some separate accounts.
Marriage Logistics:
Getting married is about love, but it is also a legal contract. Some financial considerations when legally tying the knot with your partner.
Prenuptial agreements or prenups can have a negative connotation, but they are there to protect the people involved. A prenup is a collaborative effort, and both parties should be comfortable with the agreement. If there is no prenup in place, the laws in your state will act as the prenup.
Filing taxes. As a married couple, you can file jointly (MFJ) or separately (MFS). Determining which way to file depends on a few variables, like if you have student loan debt. Your spouse's income may alter the of your federal student loan monthly payment if you're on an income-based repayment plan.
Personal finance is personal, and the most important thing is finding a system that works for you and your partner.
If you want to work with a Certified Financial Trainer to help navigate your finances as a couple, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com