1 The Problem with 50/50
Imagine one person earns 3,000 USD and the other 1,500 USD. If shared expenses are 1,200 USD and they split 50/50, each pays 600 USD. For the lower earner, that's 40% of their income. For the higher earner, only 20%.
This difference can create resentment and financial stress for the lower-income person, affecting the relationship long-term.
2 The Solution: Proportional Split
Proportional splitting calculates what percentage each person represents of the couple's total income. Using the example above: 3,000 + 1,500 = 4,500 USD total. The 3,000 USD earner represents 67%, and the 1,500 USD earner represents 33%.
Applying these percentages to the 1,200 USD expenses: one pays 800 USD (67%) and the other 400 USD (33%). Both contribute the same relative effort based on their income.
3 Benefits of This Method
- Real fairness based on financial capacity
- Fewer money conflicts
- Both can save proportionally
- Adaptable to income changes
This method fosters a healthier financial relationship where both contribute according to their capacity, maintaining fairness and reducing financial stress.