Did You Know Sharing A Home Can Save You Money?

By: Rachel Yoshida

Having a room mate has long been a way for someone who can not afford to have a place to live by their self to achieve this goal. Sometimes it will work out and sometimes it does not. It is never a sure thing. In many cases it will be two friends sharing a home or family members. This can be the situations that will surprisingly have the most pitfalls.

It is becoming more and more expensive for a single individual to live alone unless they have a really good income. The cost of renting a modest apartment in the majority of large cities is tremendous. When you add utilities, transportation, insurances, food, and other necessary expense, it can make saving anything for the future, things you want to buy, or vacations almost impossible to have. Sometimes having a room mate is the only answer.

To avoid some of the room mate pitfalls, you must pick someone who is responsible. You should not let friendship or family status become a factor. What you will have to have in order for it to benefit you financially is someone who has a good job and even then they must be responsible. Knowing their past financial status is crucial. If someone you are thinking of sharing a home with has really bad credit, can not hold a steady job, or has a past history of moving around a lot and in and out with other people, there is usually a reason for that. Do not let your personal feelings be involved in your decision.

When you have decided on a room mate, things must be worked out and agreed upon by both parties prior to moving in together. A legal contract is the best answer if you are both serious about this being a long term arrangement. If you have picked the right room mate, they should have no problem with a contract because it will be in their best interest as well as yours.

Any bills relating to the living space should be split equally. When you decide that you will pay this bill and they will pay that bill, it is opening the door for disagreements and hard feelings because one bill can be larger or smaller than the other. It is better to split everything 50/ 50. You should definitely have guide lines about having guest over because guest eat, sleep somewhere, and use utilities such as lights, hot water and other household things. It might not seem like much, but it could add up on your half of things if it happens too often. You get the picture.

A room mate living situation can work well to your financial advantage as long as everything is agreed on and there are no surprises. Carry your share of the financial responsibility and make sure they carry theirs. It is the only way this kind of arrangement can ever work.

Money Management
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