Tom and Sarah Mayambala have been married for five years. Like many couples, they had their share of financial ups and downs in their earlier years of marriage. However, they were determined to build a strong financial future together.
‘We started by having open conversations about our spending habits, financial goals, and expectations,’ the Mayambalas’ recall.
Fist, they created a joint budget that worked for both of them. Much as they were both employed, their paycheques were not the same.
‘We tracked our income and expenses, identifying areas where we could cut back and save. Then allocated our income into different categories, such as housing, food, transportation, and entertainment,’ they shared.
To stay on track, the Mayambalas implemented a system of joint financial decision-making. They discuss every major purchase or financial decision together, considering each other’s opinions and priorities. To this day, this approach has helped them avoid financial conflicts and ensured that they are working towards common goals.
What do you bring to the table?
Lately, the phrase, ‘What do you bring to the table’ has become a common expression in modern relationships.
Some couples are open about discussing and evaluating what each partner contributes to the relationship, whether it is financial stability, emotional support, or other forms of value.
This shift reflects the changing societal norms and expectations around relationships, with many couples prioritising mutual benefit.
House of Wealth’s chief executive, Newton Buteraba, in an interview with BD Life, notes the complexities of couple budgeting, emphasizing that each couple’s approach will be unique.
‘The way a couple handles a joint budget will depend on the couple and how they decide to handle their finances,’ he explains. In some households, both partners work and contribute to the finances, while in others, one partner may be responsible for generating income.
According to Buteraba, ‘Having a clear plan can help couples make progress towards their goals.’ His recommendations are setting financial goals, prioritising needs over wants, and regularly reviewing their budget.
By following these steps, couples can develop a shared understanding of their financial situation and work together to achieve financial freedom.
He adds that financial literacy plays a crucial role in managing a joint budget effectively. Buteraba notes that many couples lack financial knowledge, leading to conflicts and avoidance of budgeting altogether.
Envelope approach
Experts say a practical approach to budgeting is the envelope system, where couples allocate specific amounts for particular expenses and track spending accordingly.
‘Some couples prefer a 50/50 split, while others may choose a different ratio based on their income levels or financial responsibilities,’ notes Buteraba.
‘Find a budgeting approach that works for both partners and helps them achieve their financial goals together.’
This promotes discipline and accountability, enabling couples to identify areas where they might be overspending.
Individual financial autonomy
Buteraba, however, emphasizes the importance of maintaining individual financial autonomy within a marriage or partnership.
‘Having a personal private account allows each partner to manage their finances and make personal purchases without needing to justify every expense,’ he explains.
This approach can reduce stress and tension in the relationship, promoting a healthy and balanced partnership.
According to Buteraba, ‘When couples budget together, it fosters responsibility and accountability,’ he notes.
By working together, couples can identify areas of unnecessary expenditure and make decisions to optimise their spending. This collaborative approach eliminates waste and promotes a more efficient use of resources.
Buteraba emphasizes that budgeting can be a powerful tool for achieving financial stability, reducing stress, and strengthening relationships.
‘By prioritising your spending, creating a clear plan, and working together, you can build a more secure and prosperous future,’ he advises. By managing expectations, promoting accountability, and reducing financial stress, budgeting can help couples mitigate the risks of financial disagreements and foster a more harmonious and stable partnership.
Buteraba illustrates the importance of budgeting when it comes to school fees.
‘If a couple has not budgeted for school fees, the woman might ask the man for Shs3 million for school fees without considering if it’s feasible,’ he says.
However, if they had sat down to budget, they would have agreed on a maximum amount they could spend on school fees, say Shs1 million. This way, they can plan and make informed decisions about their finances.
Similarly, budgeting helps couples manage other expenses, such as household expenses, utilities, and entertainment. By allocating specific amounts for each category, couples can avoid overspending and make conscious decisions about their finances. If a couple has allocated Shs700,000 for food per month, they can track their expenses and identify areas where they can cut back if they exceed their budget.
This promotes accountability and helps them stay on track with their financial goals.
Couple budgeting is a highly personal and dynamic process that depends on individual circumstances, financial goals, and personal preferences.
Look carefully at everything you spend money on – and decide which of them are ‘needs’ and which are ‘wants.’
There is no one-size-fits-all approach, and what works for one couple may not work for another.
For instance, some couples prefer a 50/50 split, while others may choose a different ratio based on their income levels or financial responsibilities. This flexibility allows couples to tailor their budgeting approach to suit their unique needs and financial objectives.
In many households, the partner who manages the finances is not necessarily the one earning the income. The person managing the finances takes care of budgeting, bill payments, and ensures the household runs smoothly. This division of labour can be an effective way to manage finances, as it allows each partner to focus on their strengths and interests. For example, one partner may handle the day-to-day financial tasks, while the other partner focuses on long-term investments and financial planning.
Cultural norms
In many Western countries, couples often share expenses 50/50, while in other cultures, the man may take on more financial responsibilities.
For instance, in some traditional households, the man is seen as the primary breadwinner and provides the bulk of the financial support, while the woman manages the household expenses. The key to successful financial management in a relationship is for couples to communicate openly and agree on a system that works for them.
‘Cultural norms and geographical location can influence the division of financial responsibilities in a relationship,’ says Buteraba.
Income levels
The division of financial responsibilities can also be influenced by individual circumstances, such as income levels and financial goals. Some couples may choose to share financial responsibilities equally, while others may divide tasks based on their strengths and interests.
For example, one partner may be more skilled at budgeting and managing expenses, while the other partner may be more knowledgeable about investments and long-term financial planning.
‘Effective communication and mutual understanding are essential components of couple budgeting,’ emphasizes Buteraba. ‘When both partners are on the same page, it can reduce stress and promote a harmonious relationship.’
By understanding each other’s financial expectations and responsibilities, couples can build a stronger and more stable financial future together.
When couples talk about what each person brings to the relationship, it helps them understand each other better, tackle challenges as a team, and build a stronger relationship.
Since the Mayambalas embraced couple budgeting, they started building an emergency fund, which would cover three to six months of living expenses in case of unexpected events, such as job loss or medical emergencies.
They also began to save for long-term goals, such as buying a house, retirement, and their children’s education.