How to Split Bills With Roommates Without Making Each Other Angry
Share responsibilities. Embedded company. Other people’s expensive snacks that you can steal in gradual, inconspicuous portions. There are many good reasons for having roommates, but chances are your decision to live with a shared family is primarily financial.
According to a 2018 Pew Research study , American adults are increasingly living together for non-romantic, purely financial reasons. Sharing rent with others usually means living in a larger apartment or nicer area than any of you could afford as an individual. (Earlier, we looked at some of the other financial advantages and disadvantages of roommates.)
However, even with the best roommates, it can be difficult to navigate overall living costs. Money disputes are inconvenient at best, and friendships at worst (not to mention the potential to lose a significant amount of money). Here are our tips to set ground rules and ensure you never have to go from a friendly roommate to a designated debt collector.
Write everything down. Everything.
Accounts. Who owns the various equipment. When the rent is due and who is responsible for getting it and how. We do not advise you to split your furniture costs (this usually leads to complications and confusion in the future), but if you buy a sofa together, keep the written transaction document.
You don’t have to put on a big show to record everything, but in the event of any future disputes, it doesn’t hurt to make sure there is some kind of record of all the costs associated with roommates. Now when it comes to keeping these records …
There is an application for this
When we say “write everything down,” we do not necessarily mean pen and paper. There are many apps and online tools to help you keep track of who owes what. Try apps like Splitwise , which are great for cost sharing; Simple , allowing you to combine finances; or Splittable, which helps you manage all of your shared household expenses in one place. These apps are not only great for simplifying math calculations, but they are also a tool to be held accountable for your expenses.
Put one roommate in charge
This is not an alpha game with roommates. It is a strategy to optimize payments and provide clarity about who pays what and when. Everyone sends their money to the designated person before the due date of the bills every month. By having one person tasked with getting bills on time, you reduce potential cracks that could prevent these payments from going through. Just make sure you specify who the person is from the beginning to avoid any last minute hassle to assign roommate responsibilities.
If you are that person, you might want to consider keeping a log of who paid what and when (see attachments above). Remember, the golden rule here is to write everything down. (Also, congratulations for being considered “in charge.” Have you thought you track events with a budget calendar ?)
Before anyone pays, everyone pays
We have previously argued that it is important to always get proof that your roommates have paid the shared bills .
If you pay all your bills on time, it may be easier for you to pay yourself and then collect money from your roommates. Unfortunately, you can screw up if you give up all the urgency to get your neighbors to give you back your money. You can live with very ethical and financially secure people, but they can still be lazy and forgetful when it comes to paying your debts.
Don’t fall into the trap of being an authorized debt collector. Make everyone’s life easier by establishing a basic rule that bills are paid only after everyone has turned in their share.
Be straight
Talking about money can be uncomfortable, especially when roommates have different incomes, backgrounds, and personal finances. As with any potentially uncomfortable situation, direct communication is your best bet. A passive-aggressive sticky note will only create more tension. One way to avoid this is to always rely on written records (see above) or schedule monthly check-ups with roommates so you don’t miss out on the opportunity to live with other people.
On the subject: Chances are good that your roommate doesn’t have to be your best friend .
Define expectations before moving
Before anyone gets the keys, make sure all roommates know all of the tips listed above. Make lists of who owns what, assign your designated bill payer, and even consider drafting a formal room-room agreement.
I know how stressful and over-the-top a formal room-room agreement sounds, but it can be as simple as a generic Google doc where you all agree to pay your rent on time. On the other hand, you can also introduce more specific rules, for example, if one of the roommates causes a late arrival, it is his responsibility to eat up the entire late payment. One awkward roommate agreement now can save you much higher costs – interpersonal and financially – down the road.
Conclusion
I adore my roommates, but there can be a lot of pitfalls when sharing costs. Establishing ground rules and clear and open communication has been a lifesaver for both my friendship and my wallet. If you have removed one thing from this article: write. Down. Everything. And if you’re completely tired of your roommates, here’s a detailed guide on how much money you need to live on your own .