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Managing money in relationship can be EXTREMELY difficult. Here are some money management tips that literally show you how to manage your money.
Though this is an in-depth video, this is just the surface of managing money. I've partnered up with some incredible individuals to create a course on exactly what I discuss in this video.
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This is way too valuable for me not to share it with you
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Most couples are on top of the world until they hit one financial struggle, after another
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financial struggle, after another. In fact, 48% of American couples who live together say they argue about money
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Like on a consistent basis, and this includes married couples. Most of these arguments happen because usually one of the people spends too much while the
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other spends too little and is seen as cheap. The other arguments happen because they can't seem to agree on how to split the bills, not
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to mention debt. So what if that were you and a random couple walked up to you who you haven't even met
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before and they gave you a budgeting system that solves those exact issues, then proceeded
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to show you their results, and by results I mean one of their emergency funds that has
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over $20,000 in it. Now you're probably thinking that would never happen, but in a strange way it kind of is
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right now. So I got this exact budgeting method from this very financially successful couple and
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this is the most ingenious thing I've ever seen and I just wanted to share it with you guys
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This is literally the blueprint of how to manage money in marriage or as a couple who
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lives together, whatever the case is. There's specific issues that most couples that live together have to go through financially
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and that is not knowing what is mine, yours, or ours, two is debt, and three is just different
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spending personalities. One is frugal and one is spending too much basically
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With that said, this system has three specific parts and we're about to break it down right now
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As a matter of fact, I'm about to rip this monitor off and we're about to draw on this thing. Let's get started
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Alright, so this is part one. This is a simple joint account with all their bills within this
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So if we look right here, this is just a general, these are very rough numbers as far as what
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the average is for each bill within my area, so don't mind that
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You can just suit it to whatever your bills are, but I'm going to just make a note right
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here that this all equals out to about $3,030 per month. So obviously the couple needs to maintain more than this together if they're going to
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sustain this. Now the way this is going to work is the one who is most financially responsible is going
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to manage this. They're going to hold the debit card that gives them access to this account
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That's how it's going to work. Alright, so we're moving up top. Let's say spouse number one makes $20 an hour and spouse number two makes $17 an hour
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That means, just very rough, spouse one is going to bring home about $3,000 a month and
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spouse two is going to bring home about $2,500 a month. So together they're going to bring home about $5,500 a month, if this thing lets me draw it
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Okay, so $5,500 a month, boom. So obviously that's going to more than cover this $3,030
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Okay, so that means together they bring home about $66,000 per year, which that's more
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than the national average. Let's go ahead and acknowledge that. So most of these are just ballpark numbers, just kind of averaging out what the norm is
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for my area, but we have two specific areas where we don't really know what they are because
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they're kind of up to you, but I'm going to explain what these mean. So we have a section called miscellaneous, which you're probably questioning, and entertainment
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What do these two mean? Miscellaneous things to me are a necessity that aren't needed consistently
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Does that make sense? Miscellaneous is going to be stuff like clothing, household items that break
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You might need a new toaster or you might need a new water heater or you might need
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something that you don't normally have to replace, but every now and then you're going
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to have to replace, right? So that's what miscellaneous is. And then we have entertainment
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Entertainment is stuff like date nights, going out to amusement parks, going out to the movies
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going out to eat, going out for drinks, going out to comedy clubs, or whatever the case
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whatever you guys do, that's what entertainment is. And it might look like it's high, but I will explain later in the video exactly why it's
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not as high as you think it is. It could be more
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So that's the first portion. Spouse one and spouse two make $5,500 a month
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So now it's up to this couple to figure out how they're going to go from $5,500 and budget
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that so that it fits a 30-30 budget. The person who actually showed me this budgeting system said that her husband is actually more
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financially responsible so he is actually managing this. That means on date nights, he's the one who holds the card that is their joint account
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Now some of you are probably thinking, why are they doing date nights in their joint account
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Shouldn't it just be coming from one or the other's account? Well I'm about to explain that
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So part two of this. Spouse number one has his bank account
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Spouse number two has her bank account or vice versa, whichever one. Now their banks each have a checking and a savings account
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Very important. Very important. And then within this, they have their own things that they're paying for
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For example, their debt, their gifts to one another, their wants. So let's say spouse number one wants a new motorcycle or let's say he wants to get a
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haircut or let's say he wants to get a dog. That comes out of his expenses because they're his wants
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Make sense? And then also investments. So again, spouse number two, she pays her own debt
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She pays for the gifts that she gets for her husband or for her kids
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And then she pays for her wants. So if she wants to get her nails done or her hair done
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Then we have investments. So that's all the things that both of them would be paying for
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Now, one of them might be in more debt than the other one is
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So if spouse number one decides he has an extra $500 at the end of the month to help
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his wife with, then he can send that to her and it can help her pay her debt
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And that's awesome. But instead of combining debt and putting it into this big joint account, no
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He pays his own debt. She pays her own debt. And I thought that was just so genius
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And some people might not agree with it. You can tailor this to however you want to
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But bottom line is, this is smart thinking. It individualizes the things that one person is struggling with
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Because let's say they did put debt. We'll write it down here
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Let's say they did put debt in this category. And let's say both of them in total were $65,000 in debt
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And that's pretty normal for most couples I might add. But then that means both of them have to put so much more money in their fund
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They have to put so much more money in their joint account
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And it means that they both have to struggle to get this debt down
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And so what if they're paying off this debt and they're throwing all this money at it and then they split up
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That gets complicated fast. And this is also a money management technique
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Because again, this also, this joint account, this purple here, it has its own checking
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and savings account. So that's the basic portion of this. And that's just really the ideology and money mindset behind it
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But we're about to dig in a little deeper. So clearly the first step was to already have all their bills broken down
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Knowing how much they have to pay per month. And then understanding how much they make a month
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But we're talking about after taxes. Okay, this is the important part
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After taxes because they have to be 100% real with themselves as far as how much they make
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a month. This is their regular fund for their bills. All their other stuff goes to their own individual bank accounts like we just discussed
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So if we want to turn this into an emergency fund, which is three to six months worth of
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expenses, which would mean we would literally have to go ahead and multiply this 30-30
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by, we'll multiply it by six because you don't want to, you never know what's going to happen, right
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So we're going to multiply this 30-30 by six. So that's 18-18. I should have known that
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All right, so emergency fund goal is 18-18, right
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So that's where we're at. So that's our emergency fund goal. So that means we have to do a little bit of math between spouse one and spouse two
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Because again, one of the biggest problems with marriage is how do we split the bills
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Who pays for what? Well, you make more than I do. So I think that we're going to answer all of those questions right now
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So when you look at 5,500 minus 30-30, that's how much they're going to have left over, $2,470
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That's how much money they're going to have left over as a couple to do whatever they
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have to do. With that said, if they just do half of their paycheck within this, it's not going to equate
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to that 30-30, not quite yet. So we're going to have to figure out who puts more money in there
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Now obviously he makes more, but we shouldn't look at who makes more
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We should look at the bills on this side. Let's say he has debt, right
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Let's say he has student loan debt. Let's say they're a 26-year-old couple and there's student loan debt involved on his
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end but not on her end. So let's say he only has to pay $200 per month, but nonetheless it is still debt, right
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And let's say they don't buy each other gifts very often. They just got married
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They've got to save, obviously. But let's say he has one. Let's say he wants to cut his hair
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Let's say that costs $30 because to be real, it kind of does cost $30
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Let's say those are the only two things. Let's say he's not investing right now. He's not buying gifts right now and he's not investing
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So he's literally just paying debt and he's paying for haircuts so he can look presentable
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for work, right? So that's $230 that he absolutely has to spend every single month, right
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So then, let's say something that she does every month is gets her hair done
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Let's say that costs $70. Let's say she also wants to get her nails done
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Well, that's another $55 at least. I'm being modest here, guys. I really am
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And let's say that something she wants to do, since she has no debt, she wants to invest
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$100 in the stock market every single month. So this is part three, actually creating the emergency fund and deciding how much money
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goes into the joint account per person. So as we talked about before, he's paying his $200 and he's paying his $30 for his haircut
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and for his debt and for his haircut. And then, she's absolutely paying $225 per month between her getting her hair done and
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getting her nails done and also investing $100 in the stock market
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So that's how you determine who's going to pay more. So obviously, this guy is going to pay more
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Now, is he going to be broke at the end of the month
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No, because she's still going to put a good portion in. So let's say that she puts in half of her earnings
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All right, so let's say she has $1,250 going in there every single month because that's
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the number they agreed upon, mind you. And let's say he's like, okay, I will pay the rest, no big deal because at the end of
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the day, why not? And this, by the way, is barely more than half of his monthly wages
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So basically, spouse number two is paying 50% and spouse number one is paying 60% of
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their earnings. And that's fair being that he does make more and he's spending about the same as what she's
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spending per month on himself. So with that said, they're sitting pretty good
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So if we move up to a clean area right here, you'll see that spouse one, spouse two
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Spouse one spends $1,780 per month. Spouse one spends $1,250 per month
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So when you consider that he makes $3,000 and when you consider that she makes $2,500
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she's left with $1,250 per month. Now keep in mind, we have not taken out what they spend on themselves yet, right
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So keyboard, no, I don't want you. So this guy has $1,220 left
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So it evens out this way and that's what makes it so genius because this is literally just
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me ballparking numbers, throwing numbers out there and just seeing how it works live, right
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So they actually end up having around the same amount of money per month
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Of course, he's going to have a little less because he's going to pay his debt. So when you subtract his debt, I think he pays $230 per month and she pays $225 per
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month on average. You know what I'm saying? Apparently, I can't do math without a calculator
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So he's left with $990 per month and she is left with $1,025
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You know what I'm saying? So that's how it works. That's pretty much the gist of how it works
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Now that we know how much they have extra per month, so you can consider these right here
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They're non-negotiables that they absolutely want to make sure that they have money for
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every single month. And with that said, this guy has $990 at the end of the month
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So he could, no kidding, put $500 in his checking account, $200 in his savings account and just
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for wanting to do it, he can put an additional $290 in that joint account, in that joint
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savings account which is going to snowball into an emergency fund if you haven't caught
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on to that yet. And she could essentially do the same thing
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Let's say spouse number two wants to go ahead and put a good $400 in her checking because
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she doesn't spend money like that anyways on her own card because they have their joint account
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But then let's say she wants to stack up her savings a little bit so she actually puts
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$400 in there as well. And keep in mind guys, they do this every single month
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And let's say she puts $225 in the joint account as well
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Now here is the kicker. Remember in the beginning when I said that these two expenses are stuff that aren't really
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set, they're not really fixed, they're just kind of numbers that are thrown out there. The entertainment one is actually pretty accurate but you can always cut back on miscellaneous
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and entertainment expenses. And if you do, and if you do this correctly and you actually set up your joint account
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to where you're expecting $30, $30 to go out of every single month at the very most, you're
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going to see that typically this couple, let's just throw out a number, is only going
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to spend about let's say $2,800. Which means they're typically going to have an extra $230 per month
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So you mean to tell me that you're saving, so you mean to tell me spouse number one is
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putting $290 in the account every single month and then spouse number two is putting
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$225 in there every month and you're telling me that they're also saving an additional
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$230 per month? Let's add that up. That means together on average now, because obviously there's going to be some fluctuations
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but on average they're putting in an extra $745 into their joint account
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So obviously the bank account isn't going to look like a bunch of different bills
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It's going to look like a big number that is the amount that they have in their joint account
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But they are going to expect to see $3,030 taken out of their account every single month
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or less. Like worst case scenario is the only time they can expect to see $3,030
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Let's say they do this for a year. Let's just, you know, 12 months
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They already put away $8,940 per year. That is insane
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And if they do it for two years, do you see how this can easily get way beyond $20,000
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And it was so funny because when I was talking to the person who actually told me about this
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budgeting system for emergency funds and all this stuff, she was like, yeah, this is our
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emergency fund. It's like $20,000 in there. And I'm like, wow. And she's like, yeah, and this is nothing for us
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This is just, you know, six months of expenses. We have other investment accounts and other savings accounts
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And basically our emergency funds have emergency funds. And I'm like, that is freaking awesome
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More people need to know about this. She knows I have a YouTube channel and I make financial videos
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She was like, hey, go ahead and use this if you want to go ahead
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So here I am. And I think it'll add a lot of value to you guys
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So we're going to keep going. Emergency fund goal is $18,180. So really, if they just got to do it for one more month, yeah, if they do it for one more
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month, that's $18,625. That's already over the goal. Took them less
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I mean, come on. It took them two years and one month to do that. And that's if they don't want to put more in
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They can say, you know what? Forget my checking account for right now. Let me go ahead and put an extra $200 down here
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And then that number is going to go up. And then let's say someone ends up going ahead and getting a raise at work
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Oh, please, this number is about to start doubling, tripling. And they can stop whenever they want
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So they can stop putting that extra money because at this point it is extra
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Because remember, let me enlarge this for you so you can see
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Remember the emergency, or no, not even the emergency fund. But just so we're clear, this is the emergency fund
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This is for regular bills. That's also my initials, by the way
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But anyways, their checking account, because they're automatically putting their money in there every month, it's automatically going to have 3030 in there anyways
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And of course, if the couple is anything like me, they're going to go ahead and make sure
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that they round this number up so it's like 3100 or something because odd numbers make
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me feel uncomfortable. You know what I'm saying? Well, let's just say they already hit their goal of 1818
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So they already have a checking and a saving. So they could stop right now if they wanted to and say, hey, I have my six months
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And then they could go up here to their own individual goals
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He could be like, well, you know what? Now I want to get 2000 in my savings account
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Or now I want to get 20,000 in my savings account. He can do that because this one's paid for
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This one right here. Yeah. This one. Yeah. It's paid for. Know what I'm saying
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So if it's paid for, there's no obligation. And the emergency fund is extra anyway
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So really, really, he can invest in whatever he wants to. He can buy his wife more gifts now
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His debt, he can go full force on his debt without having to worry about any financial
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repercussions because both of them diligently put their money into it. So the thing is, both of them have to be on the same page, which I think right here
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this system, this entire enlarged system, you know, this system is going to get couples
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to work together. This couple isn't making a ton of money together, but you see how on a relatively average and
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ordinary wage per year together, they're able. They're able to save this kind of money
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Another pro tip I want to really give real quick is when you see this stuff, remember
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I spoke about, you know, their savings growing and growing and growing
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Their emergency fund is growing out of control. So if it does that, so if it does that, that does not mean their bills change
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That does not mean that they upgrade. That means that they have to make a decision upon themselves
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And I guarantee you one of the people in that relationship is going to be like, hey, we're
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making money or we're saving so much money, let's move into a bigger house. Let's do this
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Let's do that. Don't be too hasty on doing that. That's my advice to you because if you keep these numbers the exact same, but your money
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goes up and you're able to put more money in the bank account and then you build other
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streams of income, say through investments or something, y'all are going to have some
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serious money. A lot of people could follow a great, fantastic system like this and then get comfortable
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when they start seeing the numbers coming and then revert back to their old ways
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I would request that you don't do that. But this, this is the system. I mean, it's very simple, but I've never heard a single person talk about it before
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And I've talked to a lot of people about finances and not one time until like a few weeks ago
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not one time have I heard anyone speak of something like this
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For most couples, they put all their money into a joint account and fail to manage it
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or fail to put a person in charge of it. This is a great, great method
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I appreciate you guys for watching this video. It was a very long video and it just had me scribbling and talking everywhere and trying
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to figure things out and failing at math for some reason. But I really do thank you for watching this video and hey, I gave this information for
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absolutely free and all I ask in return is that you hit the like button, subscribe to
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me if you like this channel, if you want to come back and see some more of this content
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and leave a comment below and share this video to a friend, share this to somebody who you
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think it would add value to because there is a severe problem with couples and individuals
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in this world who can't manage money and this right here to me is pure gold
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And again, you can tailor this to however you want, you can tailor this to your needs
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but this is the framework and this is the money mindset behind this
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But thank you guys so much for watching. I'm Reggie Bryants. This channel is all about personal growth and personal finance so that you can control
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you, control your finances and control your life. Thank you so much for watching and I will see you in the next video
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