Thinking of taking the plunge and moving out of home? Then it's time to talk roommates and money. In this guide, you'll find tips on how to do it right.
Whether you’re moving in with best friends or shacking up with strangers, living with roommates can be an exciting time for anyone. But once the buzz of a fresh start dies down, it’s time to talk about money, more specifically, how you plan to manage household bills.
Bill management amongst roommates can be challenging, especially if everyone has a different pay cycle or their own way to budget.
While there are different ways to go about it and every household will develop its own system, there are a few tips and tricks that can help ensure finances are shared fairly.
What Bills Should You Split with Roommates
From dinner menus to the way chores are split, no household is the same. And the same could be said for the type of bills that are shared amongst roommates. However, some commonly shared expenses are rent, utility bills, groceries or even the cost of purchasing a new appliance.
Discuss how expenses will be shared
No matter how many roommates are moving in, discussing how bills will be paid every month is a must. It’s important to all get on the same page now to avoid any confusion or awkward confrontations down the road. Depending on everyone’s budget or current financial situation, you may want to allocate specific bills or split every cost evenly.
It might also be worth designating one person to be in charge of making sure bills get paid on time. This can give everyone a point of contact and minimise miscommunication.
And which expenses will be kept separate
However, there are some costs you may want to keep separate, like groceries. This may be because you or other roommates have certain dietary requirements or like to stick to a certain diet. Furniture is another expense some roommates may decide to keep separate, as in the event that one of you decides to move out, they can just take what’s theirs. This can keep the process simple and less stressful.
Split the Bill: Tools and Apps
Almost everything in life has gone digital and the way we manage our essential expenses is no exception. There are a variety of online tools and apps that can help you manage and split household bills, like apps or a good old fashioned spreadsheet.
On the other hand, using apps eliminates the awkwardness of having to ask your roommates for their share of the bill. Instead, you send them a quick notification to their phone!
Calculate Rent and Budgets with Spreadsheets
If you prefer to keep things simple and accessible for everyone, you might want to consider creating a spreadsheet for your household. This way, you can have an overview of your upcoming expenses, while customising it to the way you and your roommates like. The goal is to keep things clear and accessible, so there are no mixups with future bills.
Bill Splitting Apps for Roommates
As renting with roommates has become more common among younger people, many fintechs have developed apps and platforms to adapt to this new way of living.
This means roommates are spoilt for choice when it comes to finding the right app that best suits their household’s needs. There are apps that can help you set reminders for upcoming bills, track your spending and give an overview of your monthly budget. But if you’re after an app that is your one-stop-shop for bills and rent, look no further than Deferit.
Deferit is a budgeting app that splits any bill into 4 equal instalments. The tool can be used for rent, utility bills, internet and phone bills and much more! Using an app like Deferit means you have more control over where your money is going and can free up your household’s cash flow. The best part? Deferit is completely interest-free and charges no late fees!
Interested in giving Deferit a try? Download the app and upload your first bill today!