While handling money and expenses on your own can be difficult enough, add a roommate or two and it can become complete chaos. Here are some tips for budgeting with roomates.
ROOMMATE AGREEMENT
As roommates, sit down and determine what expenses are a shared cost and what is an individual cost. A shared cost is something that every member of the house would benefit from, such as utilities. An individual cost would be something that only that person uses, such as food. This agreement could also include other plans that relate to your living arrangement. Put this agreement in writing and ensure that everyone is on board and knows what is expected of them.
SPLIT EXPENSES
After creating your list of shared expenses, it’s time to come up with a plan to split them in a fair way. Some people choose to split expenses evenly or based on income. Additionally, if someone in the house has an exclusive perk, such as a private bathroom or the master bedroom, the way rent is split may want to accommodate that.
TRACK EXPENSES
Once you’ve determined what is a shared cost, it may be helpful for everyone to track their expenses. For example, if someone realizes the household is running low on paper towels, they’ll make the purchase and then add it to a spreadsheet. Once a month, the house should sit down this this spreadsheet and reimburse money where needed.
THE COLLECTOR
Pick someone who is in charge of confirming that money is collected from all the roommates and that everything gets paid on time each month. Use payment apps instead of cash so you don’t run the risk of money being lost.
