How someone manages their money might not be front of mind when deciding if they're the perfect roommate; the focus is generally on what you have in common and shared daily routines. But when we recently asked renters what's actually most important in a roommate, 8 out of 10 said it's reliably paying bills. So simple but not always a given.
To help keep things stress-free, here's our simple five-step system for managing finances with your roommates effectively:
1. Do the math
Before you move in, sit down and work out the full monthly cost of living in your shared home. Ask previous tenants or your landlord about typical costs of utility bills like heating and water, and don't forget extras like Wi-Fi or insurance. Knowing what to expect means everyone can budget properly from day one.
2. Delegate
Once you know what needs to be paid, figure out who's responsible for what. Some roommates prefer to assign each person a specific bill, while others find it easier to have one person handle all payments. There's no right or wrong answer - decide what you think works for your household, and know that it can always be revised later.
3. Agree on communal items
Each household is different when it comes to agreeing on what, if any, items around the home are shared. Toilet paper and dish soap are commonly shared between roommates, but what about milk, laundry detergent, or cleaning products? Have the conversation early so no one ends up feeling like they're always footing the bill.
4. Set up a tracking system
Keeping track of who owes what is much easier with the right tools. Cost-splitting apps are a popular choice to help log payments, send reminders, and keep everything transparent. Or, you could try the old-fashioned way and create a shared spreadsheet. For regular fixed costs like rent, setting up automated payments means you'll never miss a due date.
5. Honesty is the best policy
If you forget to pay on time (it happens!), apologize but don’t make a habit of it. If you're going through a tough month and know you can't make a payment, say so early. Most roommates will appreciate the honesty and may be more willing to reach a compromise.
Follow these five steps and you’ll be on track to living in financial harmony with your roommates!