Long before 2016 ended I was already mentally setting financial goals for 2017. Usually I make New Year’s Resolutions but after paying off $18k of student loan debt in 2016, I’ve changed my game. The whole process taught me to look at every dollar coming in and make a plan for it.
I’m not going to share with you where every single dollar of ours is going. However, I will share our general, overall financial goals for this year.
Five Benefits of Combining Finances – for couples keeping separate accounts
Like many couples these days, my husband and I lived together before we were married so our finances have evolved over time. We became roommates while we lived in college housing and student loans covered our living expenses. When we moved out of college housing, we opened a joint checking account and developed a (flawed) system of each transferring half-ish of what was needed to cover the joint bills. This system only got more confusing and flawed as time went on and it carried over into our marriage. We were married for over two years and even bought a house before we learned the benefits of combining finances.
Combining finances isn’t for everyone, but here are the reasons it works for us:
When we first started our budget in January 2016, I knew we were spending more money than needed but I wasn’t sure where that money was going. In order to pay off debt, we really needed to cut spending. It took us a few months but as we tightened our budget, we found the following 8 items to be draining our hard-earned cash from the bank account. Continue reading 8 Things We Were Wasting Money On
In January of 2016 I decided we finally needed to get a handle on our finances and work on paying off debt. Even though we could pay the bills, we had no clue how much money we made versus how much we spent each month. Our budgeting used to involve educated guessing on my part: we’d pay bills based on who was getting paid next and we had a weird system of putting money in the joint account to make bill pay possible. It sounds bad, doesn’t it? Because it was.