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Moving in together, managing your finances
How to share costs fairly as a couple. You can find a common solution – and still be independent.
The first shared apartment is a milestone in every relationship. When moving in together, however, you’ll need to clarify your shared finances. We offer some tips on how to tackle the topic of shared finances while preserving your financial independence.
Still hunting for the right apartment? Or are you already in the midst of planning your move-in?
There’s a lot to plan when you move in together. Finances are not the first thing that springs to mind. However, before the security deposit and first rent are due, you’ll be asking yourself questions such as: “How do we split the rent?” or “Who contributes how much to the household budget?”
Answering these questions provides security and lays the foundation for a harmonious life. For this to happen, it’s important that you know your own financial circumstances and needs. That way, you can avoid conflicts after you move in together.
We’ll show you how to proceed and what you need to consider in terms of your personal finances before you move in.
First, it’s important to clearly establish which costs should be shared. Joint costs should include items such as the rental deposit, rent, furniture, joint insurance, groceries, and perhaps joint activities. It helps to draw up a precise list of all these expenses and an overview of your income.
Next, decide how you want to share costs: you can split them 50:50, for example, if both parties earn about the same. If one of you earns significantly more than the other, you can divide costs in proportion to income; for example, you could divide them 40:60.
Start planning at least three months before you move in. This will give you enough time to account for all costs involved and to find a mutually agreed solution.
Financial issues can quickly lead to conflicts in relationships. But these conflicts often have less to do directly with money than with a person’s basic values and beliefs. That’s why it’s important for couples to openly discuss their budget and life together right from the start. To prevent conflict, clearly articulate your needs. If a dispute arises, this will help you to find mutually acceptable solutions.
Have you decided how to share joint costs? Then it’s time to get down to organizational details. Basically, there are two ways to manage your own and your shared money:
- Individual accounts
You each keep separate accounts and determine which costs are paid by which person. Afterwards, you settle the difference. However, this method requires you to record all expenses accurately, so the split is fair. - Joint account
You both keep your own accounts and open a joint account for shared expenses. Set a monthly amount that covers the costs incurred. Each person transfers their share via standing order. If something is left over at the end of the month, you can save it for joint activities and vacations, for example.
Having the same main bank can also simplify the joint management of your accounts. This applies especially to online banking: At some banks, including UBS, you can then see your own and joint accounts in one overview – and can transfer money particularly easily.
You’re also well-advised to use the bank’s digital services: Standing orders for rent and saving into several accounts are practical and time-saving. With eBill, you can settle joint bills with just a few clicks. And in TWINT, you can even split expenses directly.
It’s important that you both talk openly about suitable solutions that you both feel comfortable with. This way, you can keep your finances under control together while still maintaining your independence.
Also consider what might happen if you were to separate. What would need to be separated financially? Keep track of who bought or contributed each piece of furniture. This way, you can move into the shared home with peace of mind.
Even if you are planning a future together, you should never completely relinquish control of your finances. You should first think about your own financial goals and then discuss them with your partner – also to formulate joint goals.
To preserve your financial independence, it’s important that you define what you will continue to pay for with your own money. It is advisable to keep separate individual accounts for this and not to grant your partner power of attorney over them.
Retirement planning is also a highly personal topic. Keep saving for retirement independently of the relationship. Payments into your pillar 3a account in particular are an important basis for your long-term financial independence and provision in old age. They also allow you to save on taxes. And your retirement savings can still be used later for shared goals like buying a home.
The same applies to investing: Continue to pursue a personal and independent investment strategy, which should suit your individual needs and goals. You can also decide for yourself at the end what to do with the income you earn from it: do you want to use it for shared goals or just your own?
Living together as a couple also offers potential savings in certain areas. For example, check your subscriptions and insurance policies – there are often offers that cover the whole household instead of individuals.
The same applies to banking solutions. Joint accounts are usually cheaper and contain everything you need to manage your finances in a partnership. In addition to the joint account and cards, you will still have your individual accounts.
What’s more: you can save money for shared goals: either with a classic savings account or in funds. Investing money in a fund is worthwhile even with small amounts starting from CHF 50.
It allows you to plan together for a stable future.
