For some, sharing living spaces with other people is a decision. While for some, it is a norm, for others, it is a necessity because of the increasing cost of living and housing. However, it is a fact that living with other people helps reduce the expenses of living. In college, living with a roommate allows you to afford money for online paper writing service; whether it's a roommate that you're planning on living with because you're romantically involved, friends, or that stranger you met off Craigslist, more people mean more ways to divide the shared bills such as rent, cable and internet connection, electricity, water, and gas among others.

Living with others can help you save a lot of your monthly expenses, especially when sharing expenses with those with whom you are close. It can also mean living in a bigger apartment or a better area than would normally be possible on your income. However, there are also some drawbacks to negotiating finances with friends or, in some cases, strangers, especially if you share an apartment with individuals who do not always remember to pay their share on time or at all.

Fortunately, whether you are the luckiest person in the world to have a great roommate or just moved in with a stranger, it isn't difficult to determine how to divide the expenses reasonably. The following are how to split expenses with roommates to make everyone feel like you are all doing it right in your home.

Arrange Initial Discussion

Asking your new partners how you are going to share bills is not the most appropriate way of introducing yourself, but it is a way of making sure that all the parties involved agree on the best way of sharing the bills.

Begin by scheduling a meeting to review the budget, the expenditures likely to be incurred, and the expectations. Make sure you are comfortable and not in the formal dining area so that this conversation can be as informal as possible. Prepare a list of your expenses, such as rent, utilities, food, and other things that you and your partner will share.

Be as clear as possible about how much money you have, want or need to make, and owe. Discuss any liabilities one has, and ensure that all your co-tenants do the same.

When beginning a conversation, one must be professional in order to have a proper and effective discussion about sharing expenses with the other household members.

Make Decisions Together

If you are a couple that is just starting, and you and your friend decide to live together, or if one of you is already living with someone new, it is best to decide together how you will manage the money. It may be useful to schedule a meeting immediately or to discuss how the costs will be split at the initial stages of the partnership.

Prepare a List of the Things That Both of You Possess

If you and your roommates decide to move in together, you might want to sit down and make a list of the things you both have and can bring to the apartment for everyone's use. For instance, if you share the apartment with someone with a stand mixer while you have a set of beautiful baking pans, this is a good combination. If you can lend a couch, your roommate may be able to buy a kitchen table.

Decide Shared Expenses

Once the first conversation is made, it is now high time for the house's occupants to decide how expenses are to be divided. Some expenses split between partners are rent, utility bills, food, and other in-house essentials.

While choosing which bills should be disclosed, one has to decide which costs are necessary and which are not. For instance, while the need for cable or streaming subscriptions may be essential to some of the roommates, they do not necessarily have to be split halves.

Allocate Every Bill to a Specific Roommate

The first step is to compile a list of all the bills you and your co-tenants must pay. Rent is the most obvious, but there are others, such as cable/internet, gas, and electric bills.

Then, divide all the bills among the roommates. For instance, one of you may be the one to pay for the rent every month, another may be responsible for cable/internet, and the third for gas and electricity. Also, it allows each of the roommates to prove to the creditors how he or she has been making payments on time. That will help create each person's credit score or credit rating. Another way it could improve your credit? Pay bills where and when possible, and use credit cards most often.

Discuss How the Expenses Will Be Shared Between the Two of You

Of course, there is nothing more convenient than dividing each bill equally between all the roommates. However, some living conditions are a little more complicated.

For instance, you are in a relationship, and both of you live together, but you are paid much more than your partner. They earn approximately the same amount but have a significantly higher student loan balance and, therefore, a higher monthly payment. Should these bills be divided according to each partner's current income and financial capabilities?

Decide Individual Expenses

When dividing the expenses between the house's residents, there are other costs that the roommates have to factor in. It is always wise to address the issue of separate expenses that one may incur to avoid misunderstandings in the future. Some examples of personal expenses include personal items, cleaning items, and other items such as toiletries.

It is very important to define what can be considered personal expenses and common expenses. For instance, things like bar soap, deodorant, and other toiletries are individual costs, while things like detergents, toilet paper, and others are shared costs. Furthermore, it is important to set the policies and procedures for the procurement of single items.

Summary

Sharing an apartment with other people is an interesting and practical way of sharing the costs and making friends. However, the excitement can turn into frustration and tension about money and bills if the couple doesn't have a good system for splitting the expenses.

Everything from rent to utilities to groceries should be discussed clearly and agreed upon so that there is no confusion and no stress on the wallet. Do not infringe on each other's costs. Do not borrow each other's belongings or use the common property for individual use.

Find a way to account for and reimburse expenses incurred by individual members. It would be wise to use a spreadsheet or an application to keep track of the costs and the payments made by the members of the group so that no one is confused about who needs to pay for what and when he has to do it.