Monday, April 25, 2011

Bitter - Sweet


Relationships today can be categorized by the way they deal with the money they earn. Gone are the days when the man managed the money and the woman managed the home. The percentage of earning women has risen. That’s where a bitter sweet relationship is born. Its sweet because the inflow is more and bitter because of the complexities it brings with it.

How do double income families manage their money?

Husband and Wife Situation
Spend
Save
Result
1
Haphazardly
Haphazardly
In the long run this breeds discontent.
2
A fixed amount given  to spouse who manages all expenses
Individually
Confusion during higher expenditure months. Savings for the family are left out.
3
Joint account with fixed sums transferred every month out of which both of them spend for the family while individual expenses are done out of their personal accounts
Individually for self and out of joint account for children
Workable. A total business set up.
4
One of them spends for a period. Then there is a shift.
The other saves for a period. Then there is a shift.
Workable until the  trust and commitment in the relationship lasts.
5
Separate accounts but well communicated expense structure keeping in mind the tax implications
Saving is done to benefit the family and both individuals
Perfect plan for the perfect couple

The above situations are the few I have come across. There maybe many more arrangements. It is sad to see how calculative relationships can be. The older generation is quite surprised with the  present systems  that exist between a couple. I would advice couples to talk about their finances before they get married rather than to wait for the initial generous phase to wear out and reveal the ugly discontent , before taking any action.Any thing less than the total transparent approach will lead to problems somewhere down the line.

Exceptions: Where there is love and love only I guess none of the above factors would affect the couple’s spending and saving pattern. Sigh!

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