Editor’s note: Today I have for you a guest post by Vero, the blogger behind Financial Confessions: a UK based personal finance blog focusing on investing, careers and wealth building. In this post Vero discusses the financial advantages of moving in with your beloved and the ‘take away’ is that openness, fairness and (re)negotiating the rules go a long way to ensure happiness and prosperity.
Moving in with my boyfriend was one of the easiest decisions I ever made. He was practically living with me anyway, so I thought why beat around the bush – let’s get him in living with me. It made sense that he should stop wasting his rent money and save me money by splitting my bills. Of course this step isn’t always easy for everyone, but the news just in is that it really can pay to stick together – especially when you live together.
The other day I was mulling on the web and spotted a survey (you can find it here) which showed that couples save money, a considerable amount of money, by moving in together! I learnt that the saving for co-habiting couples can be as much as £102 a month, or £1200 a year; so the secret for saving up for holiday, car or a nice deposit is to find someone to split the bills with.
It is true that there is safety in numbers, and two for one does stretch further. Even the little things, like the weekly food shop and toiletries are halved when you buy together (as long as he doesn’t mind smelling pretty and you don’t mind his taste in evening meals!) When you set out a budget, there may even be a little left over for a Friday night trip to the cinema, or to a nice restaurant which makes for a nice date night where you can relax and just enjoy each other’s company. It’s certainly something to consider, even if not now, it’s a thought worth saving for a rainy day.
As I mentioned, moving in can be a tricky decision that shouldn’t be considered lightly. Don’t forget you’ll be seeing her/him every day and unless you have a big house that means spending a considerable amount of time in the same room. Of course there is a huge difference between paying bills as an independent being and shouldering the bills between the two people. The dynamics can change considerably, so how do you go about organising your finances together as a team?
I would recommend having a real think about the following issues – no-one wants to be fighting about that one purchase that pushed over into the overdraft!
It’s wise to know exactly what it is you’re buying into, no-one walks blindly into a serious decision without knowing about the background, all the dirty details, and it’s much the same with moving in. If your partner has accumulated debt, perhaps a student loan or big purchase, then you’ll need to know in advance. It doesn’t have to be a deal breaker, but you aren’t responsible for that debt – unless you want to be – and you’ll need to make sure you’re clear on what you’re paying out for. My boyfriend admitted to a considerable student debt from his studies before we met and he alone has responsibility for this, however, I have agreed to help support him through the rest of his studies as a team in the understanding that his resulting career will then be able to support me and any family we have together in the future.
Don’t forget, it’s all about being fair. If you are earning triple what your partner is, then maybe work out what sort of expectations are fair. Remember that a relationship isn’t just about money and there are all sorts of ways your partner can pay his or her way.
A great and practical plan is to sit down and invest together in a shared account, then you can pool your money between you for living costs, bills and spends means you won’t be squabbling over who pays what and when which certainly makes life easier. We have set up direct debits to the shared account so we don’t have to even think about the money going out, and rest easy that things will be paid and on time.
Once the contributions start adding up you can start planning for more exciting things, like your future! Living in a shared house and splitting the bills we were able to save up enough together for a lovely wedding, honeymoon around Europe and not long after a deposit for our own flat. It’s surprising that one thousand pounds can go a long way over the years and when you plan together and save together, such prospects start to seem possible and less scary than everyone makes out!
photo credit: pedrosimoes7 via photopin cc
Moving together is a double edged sword! Yes, you save money and will even get to see what it will be like if you marry. If you do it too early, it could be a recipe for disaster. If the emotional side is not solid, the financial side could just make it complicated.
@Krant: Agree; most couples I know who moved together and had chidren early in their relationship ended up splitting up. This is ultimately very costly both as financial costs and emotional costs.
We probably save quite a bit by living together. We moved in together 5 years ago, so the savings are not that obvious to us at this point. Even couples plans for your phone save money.
In relationships where both couples are non-materialistic, there is an emphasis on basic values that can stand the test of a financial collapse, like raising a healthy family or giving back to the community.