Money issues can add extra strain when you and your spouse live far apart. You’ve got separate bills piling up in two places, daily costs ticking over, and way fewer chances to sit down together and talk it all through.
It pays to start with the basics to keep on top of things. Like a monthly budget that lists all your regular costs like rent, utilities, food bills, transport, and so on.
Sometimes, couples come up short on cash. Illness, job loss, or high costs can drain funds fast. When money gaps hit, don’t struggle alone. Ask for help to get through. Turn to family first, if possible. A loan from parents or siblings often works best. But agree upfront on repayment terms.
If more money is needed, lenders provide special high-acceptance guarantor loans. High-acceptance loans give decent rates. The payments fit your situation. This takes some stress off hard times.
Joint vs. Separate Accounts
When you live apart from your spouse, managing money day-to-day gets trickier. Should you merge finances into shared accounts? Or keep things totally separate? A bit of both tends to work out best for most.
The upside to having a joint account is it can really simplify paying for big basics like rent and utilities. This way, you’re not stuck in a cycle of chasing each other for bill payments every month. Joint cash can also help build towards exciting shared future goals like a holiday fund, home deposit, or even a new family car.
It brings a sense of “we’re in this together” during all those long months you spend living apart.
But going all in on shared accounts might not suit every couple – some prefer to keep a fair degree of financial independence, too. This is where the hybrid approach comes in handy.
1. Splitting the Difference
The most flexible option is to have one main joint spending account and continue using your separate accounts. You each chip an agreed proportion of your salary into the shared pool to cover everyday essentials. The rest stays in your personal funds as a little slice of financial autonomy. It’s all about hitting that sweet spot between bonding and freedom.
Make sure to lock down fixed payment dates and get a system in place if either of you needs to make more significant than usual withdrawals. It might take some trial and error to get the balance right.
2. Start Saving
Money discussions are extra important for couples living apart. Make time each month to budget together. Plan out spending as a team.
Start by mapping bigger goals. Where do you see yourselves in 5 or 10 years? Saving for a home? Starting a family? Retiring early?
Pinpoint steps to reach the dream. Break money needs into smaller chunks. Don’t let distance limit your imagination – focus on the future joy together.
3. Monthly Money Plans
Next, create a monthly budget for regular costs. Tally up bills, food, travel, and housing for two homes. See what is left for flexibility.
Building the budget side-by-side brings insight. You see what the other struggles or splurges on. Adjust to balance fun and frugal.
Apps help update numbers on the go or go old school with a spreadsheet.
4. Expect the Unexpected
Stick to the budget as much as possible month to month. But leave room for life’s curveballs too.
Savings piles cushion surprises like car repairs or medical bills.
If gaps hit, recap spending to see where to tighten. Review incomes as well – overtime or freelance side hustles can help. Don’t panic, just problem-solve together.
5. Creative Payment Options
One partner earns significantly more when it comes to household basics like rent and utilities. Setting up automatic payments can take the hassle out of remembering every due date. And payment apps make it simple to send cash for the other person’s rent and regular home costs.
Another idea is to open a specific joint account and pay an agreed amount each month to cover shared living expenses. Limit access to additional “just in case” credit, though, to save it for true emergencies.
6. Emergency Fund
When you live far from your spouse, having a backup cash stash brings peace of mind. Saving into a shared emergency fund means fewer worries when surprise costs pop up.
Decide together how big your rainy day fund should get. It is enough to cover 3 months of essential bills as a base figure. Buy bulk it up more if your incomes vary a lot.
Going higher gives you breathing room if you face job loss or health problems. Consider, too, if either home needs big, urgent repairs. Let your risk factors guide the right savings target.
7. Build It Up
Trickle funds steadily once you pick an end amount. Most banks allow standing orders from accounts to savings. Or use money transfers services between your homes.
Try to stash most of a pay bonus or tax return whenever possible. If cash gifts come your way, they can bolster the reserves too.
8. Where It Should Sit
Accessibility is crucial- choosing an account you can easily withdraw from in a pinch. But don’t keep it too handy either, so it doesn’t get quietly drained for impulse buys!
Naming an emergency contact helps if illness stops one partner from handling cash. Just be sure it’s someone you fully trust.
9. Managing Debt
It’s easy to hide money struggles from a faraway spouse. But being upfront about debt is vital – left unchecked, it damages both security and trust.
10. Full Financial Disclosure
Start by sharing credit reports and scores. Understand each shoulder’s total debts before making pay-off plans. Look too for errors dragging scores down unfairly.
Tally up loan rates together. Target the highest first since these costs more in the long term. List minimums due to – build these fully into your budget.
11. Strategic Payments
If money allows, pay more than minimums monthly to slash interest faster. Any windfalls should go directly against the priciest debt chunks first.
Use online calculators to estimate timelines. Seeing how extra funds accelerate goals keeps you focused and motivated together.
Some find visual tracks to help, too. Draw up repayment charts to map progress over time. Crossing out completed payments one by one is hugely rewarding.
12. Borrowing Better
Old debts with painfully high interest often hang around for ages. Minimum payments barely dent what you owe overall. It’s easy to feel trapped living under a mountain of accumulating charges.
Rather than struggle alone, be upfront with your partner if sky-high rates are causing you headaches. Discuss all available options openly – two minds are better than one for finding solutions.
One approach to explore is specialised lenders who focus on fair lending for tricky situations. High-acceptance guarantor loans offer a financial lifeline to applicants even with past credit score damage or issues.
They provide clear rate details upfront so you know what to expect monthly. Limits are also flexible to fit different borrowing requirements. This helps responsibly and precisely address pressing needs like urgent home repairs or a reliable car.
Conclusion
Open communication about money is essential for couples in long-distance situations. Hiding debt or stashing away cash inevitably breeds mistrust down the line, risking major conflict. Set aside time every month – or even every week – to go over spending and accounts together.
It also helps to have an agreed personal budget that either partner can spend as needed, no questions asked. But talk through any major personal purchases above a set limit before hitting checkout. A little teamwork goes a long way towards preventing surprises and extra credit hits.
