Our New Plan

**Telephus44** · 11-10-2005, 09:10 PM

I was just so excited to make new plan, I wanted to share!

Previously, DH and I had run three separate checking account. My paycheck would be deposited in mine, his paycheck into his, and we would transfer over a fixed amount of money every pay period into the joint account. Joint covered rent, car insurance, groceries, utilities. Under our own account, we each paid for our debt (I have student loans and DH has credit cards), cell phone plans, gas, personal spending, and car payments.

This month we're changing the basic flow of money backwards - rather than our checks going into our accounts and transferring some out into joint to cover bills, our checks are going to be deposited into the joint account and we're each going to receive an allowance of sorts. Of course, the other adjustment is that the joint account is now going to be covering a lot of expenses it never covered before - DH's credit cards, my student loans, gas for both of us, funding my retirement account.

Its kind of a huge leap to make - both because neither of us feels like burdening the other with our debts. But with one of DH's credit cards being jacked to a 30.49% interest rate recently, we realized we're better off as a financial team to attack things like this jointly.

Previous, I took home $900 every two weeks and on payday I put in $500 to joint. DH took home about $1800 every two weeks and put $500 into joint. That was the money in joint was always half and half. Joint got $2000 a month, which was plenty cover bills and even a little extra (the extra was wiped out in a cross country move last year). I had about $800 a month to cover gas, personal bills (cell phone, any credit cards, student loans, car payment before I paid it off, a small insurance policy I have, and my Roth). DH had about $2600 a month to cover his personal bills and expenses.

New system (numbers have also gone up based on me and DH having new jobs): I take home $2450 per month (paid monthly) and $500 is deposited in my checking account, the balance goes to the joint account. DH takes home $1700 bi-monthly, of which $250 goes to his checking account, balance to the joint account. This means that our joint account gets $4900 per month - enough to slam out some serious CC debt (currently around $10,000), my student loans (currently around $9,000) and save up enough money for a house.

I think that giving each of us $500 a month is a good start - I know I'll never spend that much, but I know DH can - and neither of us wanted to feel really pinched (at least not at first - we can always adjust the allowance amounts later). But I am excited, and I think this is a huge step towards our financial dreams!

All and all, I'm feeling really optimistic about this. We're projecting to have the CC debt conquered by April (highest priority) and totally out of debt by the end of 06, and hopefully being homeowners by next Christmas.

I think its just hard to adjust since DH and I are both independent, and we hate the idea of saddling someone else (like a spouse) with our debt. But after two years of marraige, we continue to trust each other, and we finally reached the same page (financially) and want to continue to stay on the same course. I also find it difficult the realize that I'm not contributing equally to the financial situation. I know that I contribute in many other ways, but its still taking me a while to get used to.

And just in case Shell is reading - I already have part of my $500 allowance marked for my EF, and so does DH

**homesteadmamma** · 11-10-2005, 09:54 PM

Sounds like a well thought out plan. Great job!!!

**dwallyfam** · 11-10-2005, 10:15 PM

Good job Sarah. You guys have thought it through and will make it

**SHOPGIRL** · 11-10-2005, 10:31 PM

Sara,

I think your new plan sounds great. I think it was smart how you both kept your own accounts when you first got married and had the third joint account. This is a good way to deter financial arguments, keep your independence, and learn how to budget on two incomes. Now that you've been married for a couple years, and you both have similar financial goals, it makes sense to merge your accounts and work together to conquer the debt. I also like how both of you have your own account to do with as you wish. It sounds like a great plan.

**Scattymum** · 11-11-2005, 03:04 AM

sounds like a great plan!!

**Kimberlina** · 11-11-2005, 03:10 AM

Great plan, Sarah- I'm glad you two are becoming one, financially. I think it will make a big difference and bring the two of you even closer together. Best of luck with your new plan and you future goals!

**pammy** · 11-11-2005, 05:56 AM

Sounds great Sarah!!

I know how hard and scary it is giving up some of your independence. Way to go!! And now it seems you two are working together more as a team, that is so great!!