• Budgeting as a couple has some particular challenges.money, money, money image by easaab from Fotolia.com
  
  Budgeting as a couple involves some different challenges to budgeting for one. The key thing in reducing conflict is to think about the expectations you both have, talk them through as early as possible and then agree a workable compromise.
  
  

Joint Accounts and Separate Accounts

• It can be much easier to separate joint expenses from personal expenses if you have individual bank accounts and you each pay a proportion of your income from your own accounts into the joint account. Rent, bills and other joint expenses can then be paid from that joint account.
  
  

What are Joint Expenses?

• You need to negotiate and agree what will be joint expenses that are paid from the joint account.
  
  It's fairly obvious that rent and utility bills will be joint expenses, but if one of you uses the phone line much more than the other then it may be fairer to arrange sharing that bill in some other way.
  
  And if you have agreed that groceries are a joint expense then, for example, does that include beer as well as food? And what if one of you wants an expensive brand of shower gel, but the other is happy with budget stuff? Is a juicer a necessary kitchen appliance or a luxury?
  
  There are no absolute right answers; the key is make an agreement and stick it.
  
  

Calculating Your Expenses

• To draw up a budget, you need to work out how much you spend each month, both jointly and separately, and then allow a little extra to cover unexpected emergencies.
  
  Joint expenses might include: rent or mortgage payments, utility bills, telephone bills, internet connection fees, groceries, household goods, decorating and expenses relating to children.
  
  Separate expenses might include travel to work, meals and drinks at work, nights out with friends and club memberships.
  
  Emergencies might include needing to call out somebody to repair a broken heating system or needing to replace household appliances.
  
  

Dividing Joint Expenses

• Once you've agreed what count as joint expenses and calculated what they are the final step is to agree on how to pay for them.
  
  The basic options are to each pay in half the cost of joint expenses each month, or to each pay in the same proportion of your income.
  
  If joint expenses add up to 70% of your total joint income then each of you could pay in 70% of his or her individual income.
  
  Another thing you might want to take into account is if one person is working part time in order to care for children or other relatives, it might then be fairer for him or her to pay a lower proportion of joint expenses.