Ramit Sethi breaks down two ways couples can split finances when one earns significantly more. The proportional method: if household income is $150,000 split $50,000 and $100,000, the lower earner pays one-third of rent. Sethi prefers fully combining money because it handles raises, layoffs, and shifts the mindset from "me and you" to "we."
$150,000
$50,000
$100,000
$2,400
$800
How should you combine finances? When one person earns more than the other, your first option is proportional. Let's say, for example, that total household income is $150,000, person A makes 50k, person B makes 100k, and your monthly rent is $2,400. How would you divide that shared expense up? Well, since person A makes one third of the total household income, they would contribute one third towards the rent, which would be $800. Then person B would contribute 2/3 towards the rent, which would be $1,600. So the person making more would contribute more to your shared expenses. There's another option which is simply combine it all. I got to tell you, I like option two more and more. It handles edge cases like when one partner gets a raise or one partner gets laid off. It allows support. And most of all, it structurally focuses you together. You're no longer talking about me and you. It's we.
