How to better manage household finances when you share home with somebody?

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House share is a great strategy to save money for bills end expenditures. But, it’s very important to know how to manage household finances. It implies avoiding delays in bills’ payments and possible misunderstandings between housemates.

If didn’t have experiences with house shares, or you want to share house for the first time, these tips will help you to manage household finances more effectively.

Rent must have priority

There are two different ways to organize rent of the house: joint or individual contract for every member of the household. The joint contract is the most common and it shows the total rent which needs to be paid at the end of each month. So, it’s very important to arrange everything about how the rent is going to be split and paid.

It’s possible that one household’s member pays to the landlord the rent in full, while the other members his simply transfer their art to them. The second way is that all members send their rent’s percentage to the landlord.

Set a time of paying bills

Some of the household bills must be separated and that could be TV license, gas, and electricity, water. It must be arranged everything, especially the time when the bills should be paid. If the payments are made via direct debit, it’s recommended to set them to the same date in order to know when the money from your account will be taken.

Opening a joint bank account

It’s a great and easy way for managing household finances as each housemate can upload fund to this account and all future bills will be paid on time.

As an alternative, instead of traditional bank account, you can have a prepaid card which also allows you to pay bills from one account.

Set a designated bill payer

If you think that joint household bank account is not a good idea because of its risk, maybe you to assign a designated bill payer. Any member of the household who is reliable can be assigned to pay bills on time.

Hire a bill splitting service

There a lot of companies today that can offer a help with housemates sharing bills. Many companies are able to combine all bills into one (water, gas and electricity, broadband, TV). This is a great service because you don’t have to worry anymore about making separate payments.

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