Money: How To Successfully Manage Money With Roommates

Roommate drama can take many forms. Studies have shown that the most frequent source of friction between people living together (whether they are romantic or platonic) is money. Money may have been handled differently in families of origin. Your roommate’s family handles money like X but in your family you all handled money like Y.

Over at, they have tips on How To Successfully Manage Money With Roommates. Here are a few of our favorites:

Make Sure You Are All Financially Compatible

It is difficult to find good roommates. And sometimes you don’t have much of a choice if you’re in a rush to find someone. But make sure you pick a good roommate if you can. Ask questions. What is their employment situation for instance? Can they afford XYZ bills? How much rent can they afford? You should be financially compatible in an ideal situation. You don’t want to be the one stuck paying the bills and vice versa.

Set Expectations Early On

Sit down with all your roommates and set expectations as soon as you move in or even beforehand. Have an open discussion about your household expenses. What will be shared expenses? Will you be splitting all bills equally? It’s important to cover all the basis (or at least try to) and get this talk out of the way right from the start. You don’t want unexpected financial issues to create an awkward living situation.

Create a Household Budget

Just like your personal budget, it’s a good idea to set a household budget. Estimate utility bills as well as monthly expenses. Consider everything from electricity to toilet paper. Also leave a little extra room for any surprises that might arise. Everyone should have a clear picture of how much they are expected to contribute monthly.

To read the other tips, go to the source: How To Successfully Manage Money With Roommates.