Managing household finances can be overwhelming, especially when there are multiple income earners and shared expenses. My partner and I learned this the hard way when we first moved in together - our combined income was over $120,000 per year, but we struggled to keep track of our spending. We tried using spreadsheets, but it wasn’t until we discovered budget apps that we finally got our finances under control.
Setting Up a Budget App for Multiple Incomes
When setting up a budget app for a household with multiple income earners, the first step is to choose an app that can handle multiple incomes and expenses. I’ve tried several apps, including Mint and You Need a Budget (YNAB), and found that they both offer robust features for tracking multiple incomes. For example, Mint allows you to link multiple bank accounts and credit cards, making it easy to track all of your household’s income and expenses in one place. My partner and I have a combined 5 bank accounts and 3 credit cards linked to our Mint account, which makes it easy to see where our money is going.
One feature that’s particularly useful for households with multiple income earners is the ability to set up separate budgets for each person. This allows you to track each person’s income and expenses separately, while also seeing how they contribute to the overall household budget. For example, my partner earns $60,000 per year, while I earn $80,000 per year - by setting up separate budgets in our budget app, we can see how much each of us is contributing to our shared expenses, such as rent and utilities.
Tracking Shared Expenses with a Budget App
Tracking shared expenses is another important feature to look for in a budget app. Most apps allow you to create joint accounts or split transactions, making it easy to manage shared costs. For example, my partner and I have a joint account set up in our budget app for our rent and utilities, which totals $2,500 per month. We can see exactly how much each of us is contributing to these expenses, and make adjustments as needed.
Another useful feature for tracking shared expenses is the ability to categorize transactions. This allows you to see exactly where your money is going, and make sure that you’re not overspending in certain areas. For example, my partner and I have a category set up in our budget app for dining out, which we try to keep under $500 per month. By tracking our spending in this category, we can see if we’re staying within our budget, and make adjustments as needed.
Customizing Your Budget App
Once you’ve set up your budget app and started tracking your income and expenses, it’s time to customize it to fit your household’s specific needs. This may involve setting up custom budgets for certain categories, such as savings or debt repayment. For example, my partner and I have a goal to save $10,000 per year for a down payment on a house, so we’ve set up a custom budget in our app to track our progress towards this goal.
You may also want to set up alerts and notifications in your budget app, to help you stay on top of your finances. For example, you can set up an alert to notify you when a bill is due, or when you’ve gone over budget in a certain category. My partner and I have set up alerts for our rent and utility bills, which reminds us to pay them on time each month.
Using a Budget App to Pay Off Debt
If you’re carrying debt, such as credit card balances or student loans, a budget app can be a powerful tool to help you pay it off. By tracking your income and expenses, you can see exactly how much money you have available each month to put towards your debt. For example, my partner and I have $20,000 in credit card debt, which we’re trying to pay off as quickly as possible. We’ve set up a custom budget in our app to track our debt repayment progress, and are using the snowball method to pay off our debts one by one.
One feature that’s particularly useful for paying off debt is the ability to set up automatic payments. This allows you to schedule payments in advance, so you can be sure that you’re making progress towards your debt repayment goals each month. My partner and I have set up automatic payments for our credit card bills, which ensures that we never miss a payment.
Budget App Features to Look For
When choosing a budget app, there are several features to look for. First, make sure the app can handle multiple incomes and expenses. You’ll also want to look for an app that offers robust tracking and categorization features, as well as the ability to set up custom budgets and alerts. Some popular budget apps that offer these features include Mint, YNAB, and Personal Capital.
Another feature to look for is investment tracking. If you have investments, such as a 401(k) or IRA, you’ll want to choose an app that can track these alongside your income and expenses. Personal Capital is a great option for this, as it offers robust investment tracking features alongside its budgeting tools. My partner and I use Personal Capital to track our investments, which totals $50,000 in our 401(k) accounts.
Set up a budget app today and start taking control of your household’s finances - with the right tools and a little practice, you can create a budget that works for you and helps you achieve your financial goals.