Thursday, January 31, 2013

How to Compute Expenses for Couples

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Posted on Thursday, January 31, 2013

How to Compute Expenses with Couples
Photo credit: MSN
If you are married or in a living in situation with your special someone sometimes money becomes an issue. If one is earning more than the other party and you're used to splitting expenses, how are you going to split the bill?

Naturally, what can we think of is to divide the bill 50% each. It is logically correct but for the less earning party, he or she is actually paying more.

If you have been watching or following Suze Orman, her way of splitting the expenses is by equal percentage. In that way, both parties are paying equally .

So let's say HUSBAND is earning $3200 while the WIFE is earning $1800. Combined income is actually $5000. Now, compute your monthly average expenses. So let's say you have $2000 in joint expenses, you can arrive with the percentage formula of EXPENSES over COMBINED MONTHLY INCOME or $2000/$5000, which will give you 40%. From that base percentage, multiply each of your monthly salary to that. That amount is actually your equal share for your monthly expenses.

SUMMARY ILLUSTRATION
$2000 - average monthly expenses
$5000 - combined income

BASE PERCENTAGE COMPUTATION
$2000/$5000 = 40%

EQUAL SHARE BASED ON %
Husband $3200 - $1280
Wife $1800 - $720

What do you think of this computation?

10 Responses to “How to Compute Expenses for Couples”

jared's mum said...
March 7, 2013 at 1:48 AM

this is actually a rather brilliant idea! i bet a lot of married couples, or not as long they are sharing household expenses, can benefit well if they practice this percentage sharing of expenses.

thanks for sharing.


Chubskulit Rose said...
March 7, 2013 at 8:56 AM

I know a married couple here who does not incorporate their salary in one, they also split the expenses. In our household, there's only one budget, hubby's salary and my income goes in one.


Prettymom said...
March 7, 2013 at 9:36 AM

if i and the boyfriend will finally live together it will be his income alone as we agree to save my online earning for future and usage..


working mama said...
March 7, 2013 at 10:44 AM

in my part.. this is such a brilliant idea and must read by those planning to live togther


Mommy Liz said...
March 7, 2013 at 12:40 PM

In my opinion, couples shouldn't do who gives more or who gives less for the bills, I don't care who works, once you are a couple, all the household income goes to the bank and any bills that need to get paid will get paid thru the money that's coming out of the bank. If a couple counts how much money one should share for the bills, they are not couple, they are just room mates. It's just for me.. can u tell I don't contribute to our income?? :)

Liza Barnett


Mauie Flores said...
March 7, 2013 at 4:29 PM

My husband pays for our living expenses while my income is reserved for our recreation and vacation trips.


Kaye Figuracion said...
March 7, 2013 at 6:34 PM

This is a good idea for couples who share their monthly expenses. In our family, my husband shoulders all the expenses. And, I use mine for my wants. =)


""rare*jonRez"" said...
March 8, 2013 at 2:59 AM

It always is a good thing when the couple arrives at a fair decision when it comes to splitting on the financial aspect.

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Adin B said...
March 8, 2013 at 2:38 PM

This sounds like a really good idea. Now a days, economy tanked, we gotta watch every pennies we spend. Gotta save and budget things and take control of our financial. THanks for sharing this one.


Peachy Adarne said...
March 8, 2013 at 6:39 PM

Great idea! I know a lot of couple that are fighting about money.


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