Splitting costs with your roommates

Until you can afford your own place, you may consider managing expenses with a roommate. Sharing can have some real savings. Avoid some of the financial challenges to living with others by figuring out ways to share the expenses. Here are some ways you all can be on the same page when living together.

• Decide together how to split costs. Determine how to fairly divide the household costs. However, avoid splitting costs of personal items such as furniture. This may lead to complications if someone were to move out. For instance, let each roommate buy a few items they can own and take with them when they move.
• Develop a way to track expenses. Document each roommate’s expenses in a spreadsheet.
• Skip sharing food. Be flexible with managing your shared expenses with roommates such as splitting the grocery bills for special events. Because not everyone likes the same foods, the best tip is to keep food bills separate unless you plan an event together.
• Create a roommate agreement. In addition to the rental contract with your landlord, create an agreement between you and your roommates. This may include how you’ll split living costs and logistics such as cleaning, parking, and having guests over.
• Consider unexpected expenses. Agree to divide the cost of unexpected damages according to who is at fault. If there is damage and everyone is at fault, share the expenses equally. To help manage any unexpected housing costs, you and your roommates may consider contributing money to an emergency fund.
• Choose your roommates wisely. You don’t want to live with someone who isn’t going to be responsible for cleaning and paying the bills. Consider a check of their credit scores so you have a history of paying bills. It may also be a good idea to conduct interviews and background checks.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.