You are extremely well-disciplined with your budget and have never had any financial troubles in the past. But oh dear, your partner is a shopaholic. It is not uncommon to see people having money troubles because their spouse has completely contradictory spending habits. Incompatibility may lead to a toxic house environment. Therefore, it is extremely important that you come up with ways to manage your budget and reduce this conflict.  Continue reading for ways in which you can manage your budget efficiently when your partner is a spendthrift.

1.     Create a Pragmatic Budget

It is always a good idea to plan a budget together, especially if two people living under the same roof have different views on financial spending. Based on your spending habits and that of your partner’s, draft out a realistic budget. Figure out your collective income and then your expenses — chances are that your intelligent partner will be able to figure out his/her frivolous spending habits without you insinuating it. Who knows, maybe your partner makes a resolution of turning over a new leaf.

2.     Pay with Cash — Don’t Get Into the Habit of Using a Credit Card

Using credit cards for everyday purchases is definitely not recommended despite the fact that you will get reward points and great cash back services upon purchases. But why must you limit the usage? Since you have a spendthrift partner living with you, getting into the habit of credit card might get you into financial problems quicker than you can contemplate. Using cash will enable you to adhere to your budget and never cross the set boundaries.

3.     Financial Loyalty

Do not hide financial details from each other. It is not uncommon to see that many spouses keep their expenses a secret. Just be absolutely honest about your finances and your expenses. Keeping track of your budget is much easier when you are not building a barrier of evasiveness. This may lead to other resentments and you will have to live in an aura of distrustfulness.

4.     Restrict Your Expenses

Yes, you will have to determine a spending threshold with a mutual agreement. Living with a partner who has the habit of spending money impulsively is not really difficult when there is a weekly budget limit or so. Allocate a miscellaneous budget in your planning — this will give your spouse a feeling of liberty without even exceeding the set limits.

5.     Shop Together

When your partner wouldn’t budge from impulsive shopping sprees, you should suggest going shopping with them. This way they will not feel guilty about their habit and the two of you can make wise decisions about the stuff you would like to buy. You can even create a list which shall help you from making unnecessary expenses. Remember not to be someone who kills all the fun while shopping; otherwise your partner will be reluctant having you around the next time.

6.     Consider Having Separate Accounts

If you are having money arguments, remember that it is absolutely fine to have separate accounts even if you are in a strong relationship. But make sure that your account is not a mystery to your partner. There is a fairly good probability that upon looking at your efficient planning and budgeting inculcates better personal finance4 management habits in your spouse.