Students willing to pursue careers in the UK often find themselves on the fence regarding finances. Given the circumstances and rentals hike, students face difficulty meeting urgencies and leisure.
In this situation, students look for a roommate to share the room with. Apart from ensuring a good company, they can assist you to save over £500 by the month-end. Partnering with a roommate on university life finances prevents you from shouldering the responsibilities associated with utilities and rent.
Before sharing the bills, it is essential to note the method of splitting the same. It may sound like a complicated process initially, but the right amount of planning can help you a long way.
The write-up is all about splitting the bill without spending extras. Let’s start.
7 Tips To Manage Expenses Sagaciously with Your Roommate
Everyone shares different views on money management. Some are saviours, while others believe in living to the brink of fulfillment. If your roommate doesn’t copy your view on finances, it may become troublesome for you later. Ensure financial compatibility before splitting bills. The points below will help ensure strong finances by planning right.
1) Create a moving plan
Before deciding and stepping into an entirely new journey with your roommate, plan the monthly costs.
Discussing money matters on the table is stressful. Sorting out things early will help you remain prepared to meet expenses early. Have an idea of your partner’s financial well-being. It will help avoid any confusion later.
Analyze, is he planning to take a high-interest debt consolidation loan on bad credit from a direct lender?
- How many liabilities does he share apart from hostel bills and university stationary expenses?
- Is he someone to be trusted regarding finances?
- Is he disciplined in managing his finances?
Each of these parameters will help you make the right move. It will help you decide on the right partner to live with.
2) Explore rentals together
If possible, accompany him in exploring the best rental. Analyze and discuss the benefits and disadvantages of every rental. It will not only help you know them better and ensure satisfaction on both ends.
On the other hand, if you cannot make it together, be vocal about your choice and explain it to your partner. Do not miss upon the rates. Identify – can you find the rental at more affordable rates? It will help you ensure the lowest rental and would become easier to split.
3) Split rent by room size
Bedrooms vary in size. When deciding on the rent split, it is important to consider the total number of people splitting the bill. The square feet determine the total money each roommate will split.
If you divide the rent by the room, ensure that the roommate with the largest bedroom pays the maximum amount. Similarly, the roommate with the smallest room in the house will pay less rent.
While choosing the room, prioritize balcony, lighting, space, and vibes, along with other things.
Another way to decide the right amount to pay is by dividing the square footage of each room by the total space each person occupies. Once you have the number, you can multiply it with the total rent payment to arrive and calculate the rent each person pays.
4) Divide up utilities
Each roommate carries a portion of the utilities and thus contributes equally to the share.
For example, make a list of the individuals paying the electricity bill, individuals paying for subscriptions, individuals attending to minor house upgrades, etc. It will help manage finances well. You can also use applications to track and divide expenses.
Many applications help in managing your finances, bills, rents, etc. easily. Deciding in advance will help prevent confusion at a later date and avoid late payments. It will also help prevent discord among the roommates.
If anyone encounters a financial crunch, do not act rash. Instead, re-consider your expenses. Analyse which of these you can slash and save good money. It may not help avoid the trouble but surely help you manage finances well.
5) Check the amenities
As mentioned above, analyse the total amenities you get and pay accordingly. For example, if one of your roommates has a room with a closet and attached bathroom and you have only an attached bathroom, consider revising the rental terms. The roommate with a private room, closet and bathroom should pay more than others.
Likewise, if there is only one balcony and your partner’s door is open to it, he will pay a higher rent. Manage the conversation calmly. Else, it may impact the relationship and friendship later. Work out and analyse the extras in the flat to arrive at the right rental.
6) Make a law for guest visitors
Loved ones visit their children once in a while. It means additional expenses. Many roommates agree to welcome additional members for 5+ days. The situation is not sweet as it sounds. If they are accompanying you on a living, they must contribute.
It is important if they use the wi-fi, take long showers and use electricity or other utilities the most. Ensure to check a guest policy before walking in as roommates. It will help clear the terms to your roommates and know the same. Apart from making sound decisions, it will help you avoid unnecessary quarrels.
7) Plan unexpected costs
There are different times when one finds it strange to attend emergencies. Instead of making it uncomfortable, it is ideal for planning unexpected costs. If you buy furniture together, decide on the owner in advance. It implies deciding on the person taking the furniture while leaving. It helps avoid discomfort. Things get complicated. So, it is advisable to keep those big-ticket items separately. It would be ideal for saving and having an emergency fund in the case of uncertainty.
An emergency fund includes 6-month savings. It is ideal to use the fund only in emergencies and can turn out to be a life savior. In some cases, obtaining a 5k cash loan with bad credit can be an effective option, which you can also consider.