You might have found the perfect roommate and the perfect pad, but have you found the best way to split bills? These tricks will fix the financial fuss and make your home a happy one. Significant others who keep separate accounts will also appreciate these tips.
1. Split costs like a boss
Gone are the days of sitting around with paper bills and a calculator, divvying up costs, and then nagging each other to settle up. With IOU manager like Splitwise, if you pay a bill, you can add the expense to your account and send an IOU to your roommate or significant other. That makes splitting utilities, rent, renters insurance, or even grocery costs fast, easy and math-free!
2. Get geeky with a spreadsheet
A spreadsheet might be the tool you need to split bills with your roommates, especially if one of you pays all the bills and the other reimburses the payer for his or her share. Try this template from Excel Tactics or make your own to fit your needs. A spreadsheet eliminates your having to invite roommates or a partner to sign up for an app and then bug them to use it, which could be another pain point altogether.
3. Make payments a cinch
Deciding who owes what to whom is half the battle when it comes to splitting costs with roommates. Next, you’ve got to make payments to each other. Venmo is one of the money-exchanging apps out there. It allows you to swap funds fast, efficiently and free of charge by connecting to your checking account (or through your debit card) for withdrawals and deposits. You can pay someone or send a money request if, say, your honey owes you half the Thai takeout bill or you owe your sweetheart for the DIY decor.
4. Pay the rent separately
If your household is struggling with gathering all the rent checks and funding one account to pay the landlord on time, then RentShare is for you. This app allows you to set up a direct deposit with your landlord, if said landlord is game, and housemates can then each pay individually via autopay from their bank accounts at the same time.
5. Share a payment account
If you’re living with a significant other but don’t want to use a traditional joint checking account, try a shared account on Simple. You’ll each have your own account in addition to a shared version, and the app lets you easily switch back and forth. You can each fund a certain amount to the shared account per month to pay all your joint bills like rent or mortgage and utilities. You’ll get a notification each time one of you makes a transaction. For added peace of mind, you can use the app’s Safe-to-Spend function, which earmarks funds for your budget and savings goals and tells you what’s left over.
Living with a roommate can be a great way to share living expenses and save money. These tips will help you avoid any financial pitfalls. Contact your Farm Bureau agent for more information about renters insurance.