Financial analysts and counsellors alike, always advise business partners and intending couples, to always discuss and decide on how expenses will be shared in partnership or marriage before they sign agreement papers or tie the knot. They have to expressly state amongst themselves the responsibility each would shoulder in the business.
The weight of the responsibility each would bear may be based on the financial strength or the level of understanding between the couple. In continents like Europe and America, it is not uncommon to see the female as the sole breadwinner for the home. In Africa, where generally, the man is the head of the home and also the provider, the reverse is the case. But the tide has turned now, especially in Nigeria, where a lot of women are gradually becoming the breadwinner after their husbands are either owed several months of salary or are out of job due to recession.
In marriage, my husband and I budget for everything we do, based on the estimated income we believe is coming in, as we are in the same business. Where the budget is above what we have, then we have to prioritise items in the budget
The Managing Director, 100 Degrees Capacity, Mr. Francis Olanrewaju, explained that diversion or mismanagement of fund has led to the collapse of several partnership or marriages.
According to him, it is important that families/friends draw-up a budget for each year. “At the beginning of the year, I draw the budget for the year with the help of my partner and we plan. This enables us to have an idea of what we have to spend for the year,” he notes.
“Some partners have made mistakes in the past by agreeing that when the managing partner (most times, owner of the idea) spends equal more money with the other, they should be able to share dividends equally at the end of the year. That is wrong, if he owns the idea and spends same money with the other partners; he should earn more profits than the others.
“Also, in our part of the world, it is assumed that the man is the head of the home, so his salary is for the family, while that of the woman is hers alone. But where the woman has the funds, it is right for her to help if the man is incapacitated,” he Olanrewaju appraised.
He added that a good way to manage finance in marriage is for each partner to have a personal account and for the couple to also have another jointly-owned account, which will be the family account. That way, resources can be pooled together after determining what percentage of both incomes goes into the account.
A financial coach, Ms. Justina Okafor, also said managing finances in any business is all about planning, budgeting and accountability.
She explained, “Partners should try as much as possible not to either use personal account for the business or use personal fund for the business without the knowledge of the other or others. If any of them does, proper accountability should be done to their account officer. Receipts of all transaction should be kept and submitted for record purpose.
“In marriage, my husband and I budget for everything we do, based on the estimated income we believe is coming in, as we are in the same business. Where the budget is above what we have, then we have to prioritise items in the budget.
“When we prioritise items, we look at workers’ salaries, what is needed in the home and finance them in the order of priority. So the items that are not covered due to shortage of funds are then shelved for the next time money will come in.”
