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How to Budget a Multi-Income Household

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How to Budget a Multi-Income Household

If you just merged households for the first time, you might be wondering how you can budget the money that’s coming from both sides of the home. How do you pay for things, and how do you handle budgets? Some of the questions that may come up are, Do you take out a fast easy loan? Do you save money in a seperate bank account? Do you get an investment plan?

Budgeting a multi-income household really depends on how your finances are set up. If you’ve merged finances, then you can treat your one pot of income the same as a single income home. However, if you keep your finances separate, then you might have to do things a little bit different.

Creating One Income from Separate Bank Accounts

If you use separate incomes in separate bank accounts to pay for everything, then there’s a bit more work that goes into creating a budget as a couple or family. Rather than have access to everything all at once, you’ll have to pay for things together, or each other month, or by some other agreement.

One option to simplify this is to open a joint bank account where you can transfer money each month. This situation allows for everyone to pay an equal amount using a simple bank account, while also keeping the money separate at the end of the day.
On the other hand, you can use bill-splitting solutions like Zelle or CashApp. These allow you to transfer money to friends after they’ve paid for the bill. This means one person can pay, and the other person can pay their half-back.

Finally, if neither of those options works for you, you can pull cash out and use the envelope system. This works by having envelopes marked “bills” or “food” and putting the money for the month into those envelopes. Each month, both parties will pull out an even amount and then use that cash over the course of the month.

Keep in mind that whatever method you choose with requires trust and communication to pull off. In addition, a preset budget for each month is best.
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Quick Budget Tips for Multi-Income Homes

If you have multiple incomes going into one home, then chances are you can save at least a little money each month. However, the only way to make sure that’s happening is by sticking to a strict budget and ensuring that you’re taking all the right steps to hit your savings goals.

Open a savings account: Each person that has a bank account should have a savings account. Keeping money in a savings account not only lets it grow faster, but it also lets it stay out of sight. This can help you not spend it should you have a spending habit.

Looks for deals: No matter what you’re buying, you should be looking for a deal. That could be going to Aldi instead of a high-cost grocery store or looking in the clearance section before the regular section. The less you spend, the more you save.
Find at-home methods: If savings is high on the list, then going out often shouldn’t be. They can’t exist together. For example, if you go to Starbucks all the time, then try making coffee at home more often. You’ll save hundreds of dollars over the course of a few months!
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Sometimes Budgeting Isn’t Enough

If you’ve found yourself in a pickle with a cash shortage, then a short term loan from iCASH might be just what you need. iCASH offers short term loans for Canadians via a phone app that takes no more than 15 minutes to fill out and get the results on. No more waiting days to get the cash you need!

Visit the iCASH website today and learn more about how you can apply, get instant approval, and get the funds in under an hour!

Ramona Glanville

Ramona has been a regular contributor to some of Canada's top wealth-management editorials for over 30 years. She strongly believes in good saving habits, reducing financial clutter, and red wine.