Among Americans who made New Year’s resolutions this year, 49 percent planned to save more money, and 30 percent planned to start budgeting. If you and your partner are aiming to cut spending in 2020, you’ll get the best results working as a team. Here’s how to start saving money as a couple to set aside more for your future.
Set Common Goals
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It’s hard to start saving money, especially if you and your partner don’t have the same financial goals. Set aside some time to discuss your long-term savings goals so you can decide where you want to allocate your funds.
Whether you’re saving for a newborn, a vacation, or a house, having frequent discussions about your long-term savings goals can help couples hold each other accountable. By discussing what you want to accomplish in the future, couples can adjust plans for saving and spending as needed.
Start Budgeting
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Before you start budgeting, both partners should track spending for a month and log every purchase and expense. Tracking every expense can give you a general idea of where your money is going, and it’ll highlight areas where you can cut down on spending.
After learning your partner’s spending habits, you can adjust your spending and increase your savings as needed. Don’t think of it as budgeting—instead, think of it as creating a comprehensive spending plan that prioritizes saving for your future together.
For help tracking your spending, use a budgeting app, like Mint or Home Budget. Many budget-tracking apps can sync between phones, allowing couples to share information and hold each other accountable for spending.
Adjust Your Insurance Policy
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Paying high monthly insurance premiums can make it difficult to start saving. In fact, approximately 1.7 million people declared bankruptcy in 2018 because of medical debt. To cut down on insurance costs, look for alternative options to make your monthly insurance payments more affordable.
Additionally, consider investing in income protection insurance. Income protection insurance can give couples peace of mind if one partner is unable to work due to illness or injury. If you need help managing expenses until you can get back on your feet and find cheap income protection insurance with iSelect.
When Possible, Buy Used
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If you’re moving into a new apartment or house, new furniture can be expensive. Instead, search for used furniture at local thrift shops, yard sales, and flea markets. With a few adjustments and a fresh coat of paint, you can make an old table or chair look brand new.
Depending on where you live, it can difficult to find used furniture locally. Outlet Sale, a home goods website, sells discounted and bulk products at brand name quality. With hand-selected products from top European brands, wholesale pricing, and fast shipping, couples can save hundreds when shopping for home goods at outletsale.com.
To save even more, buy used clothing—or sell your clothes you don’t reach for anymore—at consignment stores or on secondhand apps like Depop and Poshmark.
Open A Joint Bank Account
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According to a survey by CreditCards.com, one in five Americans in a relationship have hidden $500 or more in spending from their partner. Financial infidelity can undermine a partner’s efforts to save. Opening a joint bank account can help join couples financially, hold each other accountable for spending, avoid financial infidelity.
The average checking account charges accountholders about 25 fees, so opting for one bank account can save couples money. Joint bank accounts can also help couples stop wasting time transferring money between accounts to pay bills, and they can eliminate arguments between who pays for groceries, dinner, and gas.
Regardless of you and your partner’s long-term savings goals, working as a team can help couples hold each other accountable, work toward common goals, and save more money.
