Credit: Shutterstock photoUpon marriage, paying for bills and the like becomes much simpler. One breadwinner supports the family, or both partners' incomes are shared, and all costs are shared equally. But how do unmarried, cohabitating couples divvy up everything from grocery store receipts to the monthly cable dues? Given that money can get in the way of a good relationship, there is no one panacea for this common problem for love birds-turned-roommates. But there are sensible options that can be tailored to the needs of both parties. Based on ValuePenguin's research and experience, here are two strategies that should serve, at the very least, as conversation-starters.
1. Split Everything down the Middle
Just because there's no ring, doesn't mean there can't be equal sharing of finances. Short of combining everything from savings and investment accounts and beyond, a couple can create a joint checking account, to which both contribute evenly. This account can then be used to pay for everything. This list of bills could include monthly rent on the apartment or house; other monthly bills for utilities, internet and cable; weekly grocery shopping or bar tabs. The joint checking account's remainder at the end of every month can roll over and be saved for bigger-ticket purchases, such as vacations, weddings, cars and even home-buying.
Not comfortable putting your name next to his or hers with a bank? There are other ways to divide cost-sharing evenly (or proportionally; see strategy number two below). For those couples not watching every penny coming in or out, each member of the relationship can alternate turns to pay all of the bills each month. He pays for January's water and heat, for example, and she pays for February's. For the penny-pinchers among us, consider apps like Splitwise, which allow the users to document every expense (down to the decimal point) and then assign an equal share of it to (two or more) parties.
2. Divvy up Costs and Responsibilities by...
This options requires a little more conversation. Instead of dividing a couple's routine, recurring costs straight down the middle, each person can pay their "fair" share by a different definition of "fair" -- hopefully a definition that both parties agree on. For example, if your girlfriend watches cable and you don't, maybe paying for it is on her. Another example: If you eat more food than she does, maybe you pay 60% of the monthly food costs. (As you can see, this can get complicated quickly, so it's important to set specific parameters.) That was dividing by what we'll call consumption, but consider that another benchmark to use is income. Does he earn a salary that is twice as large as yours? Then you may wonder if your boyfriend should pay twice as much as you to rent the apartment or pay the lease on the car.
There are myriad other ways to share costs proportionally. You can trade chores like taking out the garbage, separating the recycling and doing the dishes in exchange for paying for the weekly groceries. You can also host a "Bills Draft" and alternate picking which bills each person will manage and pay for -- down-to-the-cent equality be damned. Take a month as a trial period to see how your strategy pans out. As long as it doesn't begin or end in an argument, it should work. Again, to keep things square, communication trumps the strategy itself. As long as both partners understand and agree to the parameters beforehand -- and are flexible enough to offer wiggle room for the duration -- all should work out. There are strategies for this too: Throw a two-person dinner party once a month, for example, where you have a check-in to calculate receipts or merely ask for a status update. Maybe one month, your partner is a little short on cash and you help. After all, this isn't your average roommate we're talking about.
Once this is all good and settled, you and your better half can discuss how to lower your monthly bills.
The article Two Ways to Split Bills With Your Girlfriend, Boyfriend originally appeared on ValuePenguin.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
