Why My Fiancé and I Combined Our Finances

Traditionally, couples combined their finances when they got engaged or married. My fiancé and I decided to go the conventional route and pool our money about a year ago. So far it’s been working well for us, but every couple is different.

Many young newlyweds are opting to keep their finances completely separate to have more freedom and control over their money. According to a survey by Bank of America, nearly 30% of married millennials don’t share any joint accounts with their spouse.

While there are drawbacks to combining finances, we’re happy with our choice. If you’re trying to decide how to handle finances in your long-term relationship, keep reading to learn why my fiancé and I share all of our money and assets.

Helps Us Save More Money

My fiancé is a spender and I’m a saver. If we kept our finances separate and didn’t consult each other before making significant purchases, I don’t think we’d be able to save nearly as much money.

By making big and small financial decisions together, we’ve been able to balance out each other’s personalities and make better choices. I’m no longer miserly about money, and my fiancé has learned how to reign in the spending and stick to a fun money budget so we can meet our financial goals.

Makes It Easier to Budget and Adjust to Life Challenges

Another benefit of combining finances is that it makes it easier to budget, especially if one person’s income is variable.

Usually, when couples have separate finances, they split their bills evenly or proportionally based on their salaries. My sister and her husband have always had separate finances and split their bills equally. But now this budgeting method is creating some problems for them due to life changes.

My sister recently quit her 9-5 job and took a pay cut to focus on her clothing reselling business full-time. This has caused her to have trouble covering half of the bills. After paying for his share of the expenses, her husband usually spends most of his leftover income on discretionary purchases. As a result, he can’t always afford to help her out and lend her money when she’s having a lower-earning month.

I suggested that she consider combining finances with her husband to make it easier to budget. If their income goes into one shared account, her husband will be able to see how much disposable income they truly have after their bills are paid. That way he won’t overspend and unintentionally create a budget shortfall during months when she can’t afford to pay half of their expenses.

Our Preferred Budgeting Method

They could also switch to the budgeting method my partner and I use to prevent shortfalls, which is living on one salary and saving the other variable income. I work as a freelance writer, which means my earnings fluctuate from month to month just like my sister’s.

Instead of counting on my income to pay the bills, we downsized our lifestyle so my partner’s stable 9-5 paycheck could cover all of our expenses. Then we allocate whatever I make toward saving and investments. That way our mortgage and utilities still get paid even if I’m having a lower-earning month. And since we’re used to living on one income, we’ll have an easier time adjusting to potential life challenges like prolonged job loss or illness.

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Creates a Sense of Togetherness

Sharing money also creates a sense of togetherness in my relationship with my fiancé. Combining our finances has made us feel more aligned and in sync when it comes to money.

We’re more accountable to each other about our purchases now and discuss finances more often. Although we had shared financial goals before, we really feel like we’re working toward our plans and dreams together because all our funds and assets are shared.

Studies have also shown that couples who combine finances generally feel a stronger bond. According to research by the University College of London, long-term couples who pool their money are happier and more likely to stay together.

This may be because sharing assets creates more unity in a relationship and improves communication. And we all know good communication is essential for a healthy relationship.

However, you shouldn’t base your financial decisions on the results of one study. You have to do what’s right for you and your partner. There are lots of benefits to keeping your finances separate, such as greater financial independence and less arguing over discretionary spending. It’s all about weighing the pros and cons and deciding what’s best for you as a couple.

If you’re in a relationship, have you combined your finances? Why or why not? Share your thoughts in the comments section below!

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Vicky Monroe

Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.