Allocating common expenses is always difficult.
When people start living together, or even spending a lot of time together, they develop a need to share expenses.
Shared expenses include things like rent, food, pets, utilities, repairs, and other expenses.
Let's look at what factors should be taken into account when distributing common expenses, how to negotiate, and who should pay for what.
Define common goals
Before you move in together or share expenses, it's important to discuss achieving shared goals. Determine what goals you want to achieve together and what role shared expenses play in achieving those goals.
For example, if you rent an apartment, decide what expenses you want to share and who pays the rent.
If you plan to buy furniture or other home items together, discuss who will buy them and who will pay for them.
You can develop a plan in which you define common goals, allocate expenses, and share common costs.
However, make sure you use a plan that is clear and fair, taking into account the order and priority of expenses. It may be better to agree on a payment method (for example, each of you can transfer your share of expenses to a joint account).
Also, determine how flexible your plan will be (e.g. will you change your plan based on changes in prices, income, life circumstances, etc.).
Consider your total income and expenses
It is important to consider your total income and expenses when dividing your shared expenses. If one of you earns more, they may have to contribute a larger share of the money to the shared bill.
If you are living in a student dorm and are on a budget, you may want to save on some expenses (such as food) and split the costs into things that you can each afford in your own living environment.
Make a list of your total income and expenses, enter all the income and expenses from your joint account each month, and then compare how evenly your money is split.
If you find that the distribution of funds for common use does not match the distribution of income, you may need to revise your agreement or decide on other sources of income or expenses.
If one of you earns more, he or she can pay for more expenses in your life to even things out.
Discuss expenses in advance
Discussing expenses in advance is an important factor in the success of cohabitation.
If you and your partner can agree on rules for sharing expenses in advance, this will help avoid conflicts later.
Decide who will pay for food, utilities, cleaning, and other expenses so that you don't have any disagreements about which one of you paid for what.
As you identify and discuss expenses, you may want to set some rules and boundaries to ensure clarity and comfort when
For example, buying groceries. You can also consider implementing an automatic payment system, where each of you will contribute your share of the money to the account.
Don't forget to discuss other payments, too, such as payments on loans or credit cards. These accounts may be more convenient for you than others, and you'll need to figure out an approach that works best for both parties.
Don't be shy to discuss issues
Some couples are afraid to talk about financial problems because it can cause guilt or shame. However, the more you talk about difficulties in this area, the more likely we are to find solutions and avoid unnecessary conflicts.
If you see any discrepancies in your spending, don’t be shy about discussing these issues. Explain your concerns to your partner and come up with a plan to resolve the issue.
If, for example, your budget does not allow you to buy expensive products, but you often go to the store and choose them, ask your partner to buy more affordable products.
Decide who will handle the budget and make sure you both are on top of your finances. If you're having trouble with your spending, discuss the issue with your bank or financial advisor.
Be open to change
Of course, in life it often happens that some expenses cannot be fully characterized or are difficult to estimate.
In such a situation, it may be a good idea for you and your partner to leave room for decisions to be made in a timely manner if necessary.
You can always agree that each of you is entitled to certain expenses, but if the extra expenses are unexpected or emergency, first discuss the importance of those expenses before making a final decision on how to split them.
To collaborate successfully on shared expenses, it is necessary to be open and flexible during the problem-solving process and to make changes to the plan if necessary.
Previously, it was reported what divorced women regret.
Author: Valeria Kisternaya
