Are you having trouble budgeting your money when living with
roommates? You're not the only one. Most roommates at one time or
another find it hard to juggle their money and live within a budget. The
key is to create a budget that includes all of your roommate expenses
so that you don't have any unexpected surprises.
Creating a budget with all of your costs lets you find out whether you can meet your bill commitments. When you have an overview of your expenses, it's easier to budget for the future and you know how much money you need each month or week. This is important whether you are budgeting for yourself or are making a household budget. It also helps you separate your roommate expenses from other living costs.
So, what expenses should you include in your budget when living with roommates. Here are 9 typical costs you will encounter when moving in with roommates.
1. Rent
The rent will be your largest expense each week or month. Your rental agreement will set out how it needs to be paid and if you need to pay additional expenses like electricity and water to the landlord. Roommates usually split the rent evenly but this may depend on your household.
2. Kitty
Many households have a separate kitty for common household expenses. The kitty includes household items like cleaning and laundry products, toilet paper, petty cash and sometimes food. Petty cash is money put aside for emergencies, breakages and small common household items like light globes.
3. Electricity
Depending on your rental agreement, you may be directly responsible for paying the electricity bill. If this is the case, you will receive the bill monthly or quarterly depending where you live and/or your electricity provider. Electricity bills are usually split evenly between roommates.
4. Phone
The phone bill is often one of most disputed household bills. You can resolve disputes by setting up a system where roommates receive their own pin number which they need to enter before making a call. This can be arranged by contacting your local phone company. An alternative solution is for roommates to use cell phones or phone cards. Phone bills are usually sent monthly.
5. Internet
If you decide to share Internet access, you will need to calculate the cost into your budget. Check with your provider if each roommate can be billed separately. You will receive your bill monthly.
6. Water Bill
The amount of your water bill is usually determined by your rental agreement with the landlord. Sometimes water is included in your rent while other times the bill will be sent directly to you. It's important to check your rental contract regarding how your water bill is calculated and is to be paid. This is often determined by the type of premises you are living in.
7. Cable TV
As it's difficult to monitor how much Cable TV each roommate watches, this bill is split evenly between all household members. You should receive this bill monthly.
8. Entertainment Expenses
It's a good idea to calculate some money into your budget for entertainment. This way there will be enough money available when you have invited guests and you won't need to worry about spending more than your budget. You can put any unspent money into a special entertainment kitty.
9. Miscellaneous Expenses
These expenses are extra costs that are unique to your household. For example, you may need to buy supplies to maintain a garden or your household may decide to hire a cleaner.
When calculating your expenses or planning a budget, it's important to make sure all of your costs are measured using the same timeframe. For example, if you are calculating a monthly budget, you will need to make sure that each of your expenses has been converted to the monthly amount. By creating a budget and having a clearer understanding of your roommate living costs, you'll have greater control over your money and won't need to worry about unexpected costs. Before you know it, your roommate budget troubles will be over.
Good Luck and Enjoy Roommate Living!
Creating a budget with all of your costs lets you find out whether you can meet your bill commitments. When you have an overview of your expenses, it's easier to budget for the future and you know how much money you need each month or week. This is important whether you are budgeting for yourself or are making a household budget. It also helps you separate your roommate expenses from other living costs.
So, what expenses should you include in your budget when living with roommates. Here are 9 typical costs you will encounter when moving in with roommates.
1. Rent
The rent will be your largest expense each week or month. Your rental agreement will set out how it needs to be paid and if you need to pay additional expenses like electricity and water to the landlord. Roommates usually split the rent evenly but this may depend on your household.
2. Kitty
Many households have a separate kitty for common household expenses. The kitty includes household items like cleaning and laundry products, toilet paper, petty cash and sometimes food. Petty cash is money put aside for emergencies, breakages and small common household items like light globes.
3. Electricity
Depending on your rental agreement, you may be directly responsible for paying the electricity bill. If this is the case, you will receive the bill monthly or quarterly depending where you live and/or your electricity provider. Electricity bills are usually split evenly between roommates.
4. Phone
The phone bill is often one of most disputed household bills. You can resolve disputes by setting up a system where roommates receive their own pin number which they need to enter before making a call. This can be arranged by contacting your local phone company. An alternative solution is for roommates to use cell phones or phone cards. Phone bills are usually sent monthly.
5. Internet
If you decide to share Internet access, you will need to calculate the cost into your budget. Check with your provider if each roommate can be billed separately. You will receive your bill monthly.
6. Water Bill
The amount of your water bill is usually determined by your rental agreement with the landlord. Sometimes water is included in your rent while other times the bill will be sent directly to you. It's important to check your rental contract regarding how your water bill is calculated and is to be paid. This is often determined by the type of premises you are living in.
7. Cable TV
As it's difficult to monitor how much Cable TV each roommate watches, this bill is split evenly between all household members. You should receive this bill monthly.
8. Entertainment Expenses
It's a good idea to calculate some money into your budget for entertainment. This way there will be enough money available when you have invited guests and you won't need to worry about spending more than your budget. You can put any unspent money into a special entertainment kitty.
9. Miscellaneous Expenses
These expenses are extra costs that are unique to your household. For example, you may need to buy supplies to maintain a garden or your household may decide to hire a cleaner.
When calculating your expenses or planning a budget, it's important to make sure all of your costs are measured using the same timeframe. For example, if you are calculating a monthly budget, you will need to make sure that each of your expenses has been converted to the monthly amount. By creating a budget and having a clearer understanding of your roommate living costs, you'll have greater control over your money and won't need to worry about unexpected costs. Before you know it, your roommate budget troubles will be over.
Good Luck and Enjoy Roommate Living!
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