Episode Summary
In this episode, Mike and Maggie talk about split and combined finances for a household and the many considerations that should go into your decision on how to handle finances in your relationship. There is no right or perfect answer, and it’s more important that you and your partner have open and honest communication regarding finances.
Episode Notes
Maggie reads a review from apple podcasts, and gets vulnerable with some feedback she received on her voice. And we answer a voicemail from Alex about what to do with extra savings at the end of the month.
Mike + Maggie’s overall advice is that there are different considerations and life stages or situations where split vs. combined finances could be appropriate. Maggie is a proponent of split finances, which she believes can create less opportunities for disagreements or conflicts on how money is spent. Also, split finances shouldn’t be taboo or a bad thing. It doesn’t mean you don’t love each other, or that you’re not being communicative about money and financial goals. Mike is on the combined finances train and believes it is often necessary and best if one person is not working outside the home or staying home with the kids (which is incredibly hard work!) or if there is a really large difference in salaries. Additionally, combined finances allow for a more streamlined approach to money management, portfolio investing and analysis (the stuff Mike loves).
Maggie shares her views on pre-nups, which we’ll cover in a future episode. Whatever you do, you should always come together to review your finances as a family together.
Our top 3 takeaways for this episode:
- Decide what is best for you, in your life stage and situation. It can always adjust over time.
- Manage your finances together with your partner and communicate, regardless of whether you decide to do split or combined finances.
- When in conflict, choose love over money. Aim to choose compassion and love in any financial discussions. Your relationship is more important than money.