She said yes! We're moving in. When do we combine our money?
My girlfriend and I just recently got engaged! I asked her to marry me on a mountain trail, next to a waterfall. She said yes! It really was magical. As normal progression would take us, we're now preparing to move in with one another. Luckily, we both own our own homes in a small well sought after town in Florida. I bought 9 years ago, and she 3. Since she has not been in her house as long, and because it has more storage space than mine, we decided I would move in with her, and we'd begin the journey of renting mine out. We talk about our future together all the time, but only recently started talking about finances. And the main question that has arose is when should we combine everything? Essentially, when shall two become one? She has I higher income than I do, but I have more in investments than her. As she puts it, "I've got us covered for now, you've got us covered for the future." We're a power couple.
I recently came across an article of a couple that retired early, within a few years of me and my now fiancé. They talked about how they used to each have their own checking accounts, separate from each other, in which they would deposit an allowance for each of them. After a few years into their marriage, in addition to the increased trust over time, they fell into a pattern of not really spending much money on things for themselves as much. So, the idea of them having their own checking accounts became a moot thing. My girlfriend and I like the idea of having separate checking accounts for now and giving ourselves a fair allowance, while reserving a good portion of our income to put towards investments. Be those investments in the stock market or going toward paying off our houses, we're going to make sure we are always investing in our future.
Combining Forces
According to Maryalene LaPonsie, in her article The Case for (and Against) Spouses Having Joint Checking Accounts, this is "ONE OF THE MOST fundamental decisions a couple faces". She discusses some benefits and drawbacks to consider before opening a joint bank account.
The benefits Maryalene talks about further in depth are that "Joint checking accounts promote trust and transparency...offer a clear financial picture...[and]...make it easy to plan and pay for expenses."
I can see how setting up a joint account for shared expenses like the mortgage, utilities, and certain monthly subscriptions would be a smart idea. But we're hesitant to combine all of our money and both pull out of just one account.
Gotta Keep 'em Separated
In his article Five Benefits of Separate Checking Accounts, Justin with Young & Thrifty, discusses some benefits of keeping separate checking accounts, despite being married.
Justin says that keeping separate checking accounts "Provides a measure of financial independence to each partner". He also states that it "provides checking account diversification in case of an emergency".
I like the idea of each of us keeping our own separate checking accounts, at least for a while, for our own "play money", but I don't think all of the money needs to be kept separate.
Our Plan For Now
As for now, I think we are going to keep our money separated. I'm a spreadsheet guy, and have built an entire financial portfolio for myself on Excel, that I may eventually share with everyone. I plan on adding in all of my fiance's information in the near future. We will combine everything on paper, but not in the real world. Not yet. Eventually, we will open a joint account for shared expenses, but I don't think that is necessary at this point in our lives.
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