canstockphoto8857234Are you thinking of taking your relationship with your partner to the next level by Moving In Together?  This is indeed a big step to take in your relationship. It is also a big step in regards to sharing your finances.  Moving in together will most likely ease the burden on both of your wallets since the household expenses will be shared by both of you. When you plan in advance on how you will split the costs, things will go smoothly.

 

Running a household can get quite expensive. There are many factors that you should take into consideration.

 

Household Bills

 

Before you move in together, the first thing you need to do is to figure out whose name is going to be on the utility bills. This includes the lights, telephone, cable service, water and gas. If you decide that only one of you is going to be on the lease, then your name or your partner’s is going to be on the utility bills. On the other hand, the utility bills can be in either name if both of your names are on the lease.

Splitting the household costs in half is the usual way for married and unmarried couples alike to handle their finances. When the bills are due each month, you will both share all of the expenses or one of you will pay all of the bills while the other is responsible for the groceries and rental insurance (or homeowners insurance).  Make sure to keep the bills where both of you can gain access so that you can review them in order to keep track of your monthly expenses. Writing  this information on a sheet of paper, using a budgeting software program or app are other great options.

 

Bank Account

 

Some partners choose to open up a joint checking account for the main purpose of paying the bills. If you decide to set up a joint checking account, it is always best to have both of you to check with one another when it comes to handling the finances to prevent overspending. However, opening a joint bank account isn’t for everyone. If you are uncomfortable with this idea, then you should discuss alternative payment plans with your partner. You can always ask your partner for his or her share of the bills whenever the payment is due.

 

The only drawback to this is that the funds may not be readily available. If you don’t have the money on hand to cover your partner’s share, you will run the risk of paying late fees or worse, getting evicted. Another problem you can run into is having someone who has a bad habit not paying his or her portion of the expenses. This is why it’s important for both of you to have a clear understanding beforehand on how the bills will be paid to prevent these things from happening.

 

Allowing Others to Move In

There may be a time when friends and family members may fall on hard times and will ask to live with you for awhile. Before giving someone permission to move into your home, always ask your partner first, even if you think he or she will allow it. Remember this can also put a strain on a relationship.

Before moving into your home, let your new roommate know what expenses that she will be responsible for.  It is always best to have this in writing with both of your signatures.

 

Moving in together is a big step and requires planning when it comes to your finances.  Although, it is not required for you to combine your income with your partner, an adequate payment plan is needed to cover the mortgage/rent and other household expenses. If both of you work together on your finances, this will ensure that you’ll have a healthy and financial free relationship for years to come.

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