![]() Splitting expenses strictly based on how much someone used a certain thing can be a good option if different members of the house have very different consumption habits.įor example, one housemate may never use the Internet or always showers at the gym, so in this system they would pay less from those specific expenses. Groceries and gas are probably always likely to be cheaper than rent and electricity, so overall it gets more points for convenience than fairness. On the downside, the fairness of this approach is a bit arbitrary. On the plus side, it’s a great option to reduce the amount of bank transfers you need to send when you split things. For example, one person covers electricity and water while another covers Internet. Different people take on individual expenses.Īnother way is to split expenses by category. You’re willingness to do this probably depends on how serious your relationship is whether you want to operate as “a team” where you share everything and are working towards common goals, or whether you want to maintain a sense of independence and ownership of your finance and prefer to split evenly. The idea is that the amount each person pays is proportional to their income. Splitting based on income is most popular for people in relationships, where one person earns significantly more than the other and is happy to foot a higher percentage of expenses. The downside of this approach is that is can be difficult to get down to an exact science how the split should land, so it’s important to discuss this and get everyone to agree on your split ratios before lodging expenses. This method is great to optimise fairness when people in your house have very different incomes, routines or consumption of utilities in your house. If one person in the household has put their hand up to foot the majority of the expenses.This is an extremely common method of splitting expenses – even outside of couples. It might make sense for housemate A to pay 80% of the Internet bill. For example, maybe one housemate works from home and uses the Internet, while someone else rarely does. Some people don’t use that particular expense as much as others, so it doesn't make sense to split evenly.Splitting by percentage means all your household expenses are lodged, but the amount that everyone pays is weighted. We’ve have fairly similar lifestyle habits and use the utilities in our house pretty equally, so we’re happy with this method. ![]() This is how my girlfriend and I split our expenses and rent. If that sounds good to you – this can be one of the simplest ways to split rent. People in your house buy a bunch of stuff. But if you’re still wondering how you should split your expenses, here are some options. In this example, Rachel owes Dennis $38.83 and Cooper owes Dennis $18.33. After the “ Simplify” box is ticked, the spreadsheet will do some magic calculations to find the least amount of transfers needed to settle up. Sending money to every person in your house to settle up can be a bit time consuming, so the spreadsheet also includes an option to simply the calculation.As every expense is added, the spreadsheet will automatically calculate the amount each individual owes to each other.If they want to split it by percentage, they can pick Variably from the How to split dropdown and add a percentage under each person’s name.If you want to exclude a housemate from paying for the expense, simply untick their name. The spreadsheet will automatically assume everyone if splitting it. If they want to split the expense equally between housemates, they can pick Equally from the How to split dropdown and tick the checkboxes for everyone who is going to contribute.When someone in the house pays for something – lodge it in the spreadsheet.You’re now free to customize the sheet with the names of your housemates. Click on this link, Sign in to your Google account (100% free unlike Excel), and copy the Google sheet.It’s setup for you to start using, no matter how you prefer to split expenses. And to start making things smoother in your household – I created a nifty spreadsheet template with a little bit of coding magic. This post will cover the various ways you can split household expenses fairly. But after speaking to a bunch of people in different situations (couples and singles) it turns out the reality is far more complex. Really depends.īefore writing this post, I naively assumed most people were like me, and split rent and house expenses equally. What’s the fairest way to split household expenses?Īnd the answer. Over the past week I’ve given a lot of thought to this question:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |