Author Topic: how to budget multiple accounts?  (Read 1780 times)

anastrophe

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how to budget multiple accounts?
« on: July 19, 2013, 11:46:40 AM »
This seems like it should be simple but I need it explained to me For Dummies style.

I have a checking account, into which some of my income is deposited, and personal purchases are made. Due to recent changes in our household finances, I have also been making "household" transactions on this account. We also have a joint checking account which holds some of my income, and some of my partner's income. Only household transactions off this account. Then my partner has a separate, personal account, no household expenses.

                     my$                         partner's $
                       +                           +
              +-----+-------------++--------+
              |                           ||           |
              |                           ||           |
              |                           ||           |
              +                         ++          +
          my $ and        joint $     partner's $
          joint $

Okay, here's the thing I'm not getting. In my old system, we kept budgets for our own accounts and one for the joint account--three budgets total--and that worked fine. Now that I'm buying household stuff on my own account, though, the numbers are coming out skewed. If I combine our household budget with my personal budget, it looks like I make way more money, which bothers me. If I don't, then I have to somehow export the transactions from my own account to the joint budget.

What's the most elegant solution here? I feel like it should be obvious but I'm stumped. I know you guys will know:)

Kazimieras

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Re: how to budget multiple accounts?
« Reply #1 on: July 19, 2013, 12:48:03 PM »
It depends how you handle budgets and the style of relationship you have with your partner. Me and my partner have one account that combines both incomes and this is known as the household account. We have what could be considered a budget, but I think I'd describe it best as a tracking system that ensures we are meeting specific goals and targets within the account (a fuzzy budget perhaps?). From there, we each have 1 personal account (making 3 total) and this is for "fun money" (also known as an allowance). So any joint purchases are made together and in agreement from the central account. Anything else comes from our own accounts - no questions asked.
Now this is our view of doing things since we are married and the laws are such that if we were to split, all assets would be split as well - so may as well combine them to keep it simpler, we are in this as a team after-all.


If you want to track your budgets better, honestly just make sure you only pay household expenses from the household account. Remember when adding your household budget to your own, you need to subtract your partner's share for the numbers to equal out.

anastrophe

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Re: how to budget multiple accounts?
« Reply #2 on: July 19, 2013, 02:09:06 PM »
It depends how you handle budgets and the style of relationship you have with your partner. Me and my partner have one account that combines both incomes and this is known as the household account. We have what could be considered a budget, but I think I'd describe it best as a tracking system that ensures we are meeting specific goals and targets within the account (a fuzzy budget perhaps?). From there, we each have 1 personal account (making 3 total) and this is for "fun money" (also known as an allowance). So any joint purchases are made together and in agreement from the central account. Anything else comes from our own accounts - no questions asked.
Now this is our view of doing things since we are married and the laws are such that if we were to split, all assets would be split as well - so may as well combine them to keep it simpler, we are in this as a team after-all.

This isn't really about our relationship, it's more of a technical question. We are comfortable with this arrangement and the primary reason I put household things on my own card is because that card has a better rewards program. It's just the accounting that trips me up.