Roommates can help you save money on rent and help you move into a nicer apartment or a safer neighborhood. However, negotiating finances with friends (or strangers) can be risky, especially if you share a room and your roommates are not always prompt with their payments. Luckily, we’ve got some tips for you on keeping and sharing a budget with your roommates.
Collaborate in Decision-Making
Whether you’re moving in with a new friend or adding to your family, making financial decisions as a group can be extremely beneficial. Consider convening a meeting right away to discuss cost sharing.
Make a Checklist
Make a list of the items you and your roommates already own and can bring to the apartment for communal use before moving in.
Maintain a Record of Monthly Expenses
Cohabiting frequently entails sharing more than just rent and utility bills. Consider sitting down with your roommates to discuss what monthly expenses, aside from rent and utilities, will be shared and how these costs will be split. Subscription services such as video streaming are available.
Divide Bills Evenly
Given the difficulty of determining who used the most electricity or Netflix, it might be best to simply divide the bill evenly. This method saves time and energy, and it may be the most equitable.
Choose One Bill Payer
To make things easier, assign bill paying to a single person (and ensure that no bills fall through the cracks). Everyone else can send money to this person before each month’s bills are due.
Keep Track of Expenses
Make a list of each person’s expenses and the amount they can expect to pay each month so that no one is surprised when it comes time to pay the bills.
Distribute Household Goods
After you’ve determined your non-negotiable monthly expenses, you might want to think about how you’ll manage the cost of household supplies.
Make the Choice to Share Groceries
Even if your food tastes differ and you buy the majority of your groceries separately, sharing staples like milk, coffee, juice, and even rice or quinoa can help you save money. To save money, if you cook together on a weekly basis, you might want to share groceries.
Differentiate Certain Purchases
Sharing a couch does not imply splitting the bill. While the cost of furnishings and electronics for your rental may appear reasonable, consider what happens when your lease expires.
Unless you and your roommates plan to sell everything and split the proceeds, paying for items separately can help you save money in the long run.
Work on A Budget Together
Before you start shopping for groceries or other household items with your roommate, you should sit down and plan out a monthly budget. Getting on the same page about monthly expenses can help you avoid future financial squabbles.
Create a Contract Agreement Among Roommates
Your first roommate contract should be separate from your landlord’s rental agreement.
Defining Damages Liability
Discuss who will pay for any unexpected expenses, such as damage to your rental. You may agree (and document) that whoever causes harm must bear the consequences.
Divided Security Deposits
The security deposit is expected to be paid by all roommates. As a result, they’ll all be equally invested in keeping the property in good condition so that they can recoup their investment when they leave.
Barbecues and Super Bowl parties are great ways for roommates and their friends to get to know one another. All roommates can contribute to making the celebration both enjoyable and affordable.
Hold Monthly Meetings
Give everyone an opportunity to express their concerns and work toward resolution by holding monthly meetings to discuss finances and other issues.
Don’t Shoulder Costs
If you are financially responsible for your roommates, it may be simpler to pay the bills yourself and then collect from them later. If your roommates are slow to repay you, this could put you in a bind.
Conclusion
Living with roommates could be fun until it isn’t. Most of the time, the root of tension in a home could be behavior and attitude towards finances. As such, set some house rules with your roommates with these tips and tricks. This way, you can agree upon things unanimously!
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