Here is the process:

1. On the first day of each month, we sit down for an hour long meeting with our laptop for a budgeting session.
2. We create a new sheet for this month.
3. We add the total of salary deposits.
4. We add the expected regular monthly expenses (mobile, commuting, fun, grooming, eating out, contributions to our families, etc...)
5. Then we discuss, debate and add the irregular expenses (clothing, medical, insurance payments, social gifts, etc...). Large purchases, vacations, etc... are planned months in advance, so they also get added.
6. We arrive at the final "income - expense - surplus" figures for the month.
7. We immediately transfer the amounts into different accounts for expenses (salary accounts), savings (joint savings account) and investments (mutual funds).
8. Finally, we update our summary sheets for the year and also calculate our net worth for that month.

Here is the philosophy:

• Any money we earn is "our" money. This is true regardless of who earns how much (or at all). The money may reside in different accounts for convenience, but we both have equal power in the decision making process.
• At any given time, both of us are COMPLETELY aware of our financial situation. Every single rupee is accounted for. We track expenses DAILY. THERE ARE NO SECRETS.
• The above will NOT work if we don't cut each other some slack. We understand that we are individuals. We WILL spend money on things that the other one thinks is a complete waste. As long as the amount is reasonable and well planned, we're okay.
• Most importantly, we don't let our parents, in-laws, siblings (children or not old enough) or others, dictate our finances no matter how much they need our help and put pressure. Some people just can't stay out of other adults' financial lives.
• We help people out all the time, but the two of us sit down, reason, argue, fight, throw vessels, etc... and decide how much to help whom. There is always a compromise and nobody comes out 100% happy all the time. It's called life, and it's not always fair.