How to Manage Finances with Multiple Incomes
If you have more than one income stream, you’d typically imagine it to be much easier to manage than if you just had one. However, while multiple income streams allow you to live a much more comfortable life, they can prove pretty difficult to manage.
If you’re looking for the best way to manage finances with multiple income streams, below you’ll discover some great tips and advice you can follow.
Create a spreadsheet
In order to manage multiple income streams, it’s worth creating a spreadsheet. It’s an old-fashioned method yet it still remains extremely effective at helping you to see how much money you have coming in and how much you have going out.
You can do this for both multiple business income and for managing your finances as a couple. One great benefit of doing it in a spreadsheet is that other people can collaborate on it too. So, your partner for example, could have access to the sheet and make adjustments as and when needed.
Consider a joint bank account
Joint bank accounts have both advantages and disadvantages. They can be really useful for lumping both income streams together. Yours and your partner’s income would be paid into the same account, letting you see exactly how much you have available.
However, in order for this to work, both partners need to be willing to be honest about how much they earn. So, if one person is reluctant to share all of their earnings, a joint bank account may not be the best option.
Other clever banking options
As well as a joint account, there are other banking options which may be able to help you manage multiple incomes. Take the Think Money account for example. They offer accounts that are even suitable for those who have been declared bankrupt. They work by managing your money, not just acting as a place to keep it.
So, when you get paid, the amount you pay to your bills is automatically separated into a different area. This lets you see exactly how much disposable income you have.
Make use of apps
There are lots of apps you can download to help you manage your finances. Many of them allow for multiple income streams. Even the apps with savings goals can be shared amongst couples if you each have the password and account details on hand.
You’ll find loads of apps out there, but some of the best include Good budget, Money Dashboard and Loot. Take a look at the different apps on offer to see which best suits you and your income streams.
Overall, managing multiple income streams isn’t always easy. However, with the tips above you should find it a little easier. Spreadsheets, joint bank accounts and money management apps are all fantastic options. However, it’s important to compare all of your options before choosing the right method for you. Not all of them will be suitable for you so you need to work out which ones best fit your requirements.