List All Fixed Expenses

Start by listing the shared expenses you have together, such as:

• Rent or mortgage
• Gas, water, and electricity
• Internet and TV
• Municipal taxes
• Insurance (home, liability, sometimes health)
• Groceries
• Shared subscriptions (streaming services, magazines)

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This list gives you a clear overview of monthly costs and assists in dividing expenses.

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Ways to Split Costs

There isn’t one “normal” way to divide costs when moving in together. What works varies from couple to couple. Here are a few common options:

• ⚖️ 50/50 Split:  Divide costs evenly, which works well if you both have similar incomes.
• 💵 Income-Based Split: If one person earns significantly more, it may feel more fair to split costs proportionally (e.g., one covers 60%, the other 40%).
• 👉 Assign Specific Expenses: Each partner pays for certain expenses, such as one covering rent and the other paying for groceries and utilities. This can work if the overall costs are roughly balanced.

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Open a Joint Account

A joint account can simplify the management of shared expenses. Decide how much each person will deposit monthly, based on your chosen division. Use this account exclusively for shared costs, which eliminated the need to calculate each expense separately and provides a clear view of your joint spending.

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Keep Room for Personal Expenses

In addition to shared expenses, it is wise for each person to have room for personal spending. Each partner should allocate funds for personal expenses like hobbies or clothing. By setting aside money for personal spending, you ensure a sense of financial freedom.

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Set Clear Agreements and Re-evaluate

Clear agreements prevent misunderstandings. Determine who pays what, when deposits into the joint account will be made, and how you will manage unexpected expenses (such as repairs or high utility bills). While it may seem formal, putting these agreements in writing can be beneficial.

Re-evaluate these arrangements periodically or after significant changes, such as a job transition. Be prepared to adjust contributions as needed and remain flexible in your approach.

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Handling Complex Issues

Sometimes, dividing costs can become more complicated. For instance, if one partner owns the home, how should mortgage costs be handled since one person is building equity? Consider whether this ownership should affect monthly contributions and how to address maintenance costs.

In these situations, transparency and fairness are crucial. It may be helpful to create a cohabitation agreement to clarify expectations and responsibilities.

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Managing Finances Together with Grassfeld

Grassfeld helps you to effectively track your shared finances. With the app, you can budget collaboratively, set savings goals, and automatically categorize joint expenses, providing you with a real-time overview of your spending. Download Grassfeld in your app store and take control of your finances as a couple.