Succesfully creating a joint budget... and sticking to it

There is a Chinese proverb that says “if you want to go fast, go alone, but if you want to go far, go together”.

This proverb (which isn’t even Chinese) is absolutely right, but let’s be honest… many times “going together” tends to be complicated because we are all different, and each one thinks differently.

The relationship with your roomies, your business partners and even your couple could be a disaster if you don’t put together a budget. The idea is that both parties benefit.

Basic rules to build a budget with your roomies

1. Set a day and time to pay rent

If you don't want the owner of the apartment to show up charging the rent, set a fixed day to make the rent deposit.

Example: Every Monday of the first week of the month, you must deposit the rent money to an account. Without fail.

Choose someone responsible for rent and services payments; track calculation and control of pending accounts.

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2. Before moving in with your roomies…

Make sure they are responsible. Set rules and discuss what you wouldn't tolerate.

Example: It’s forbidden to eat each other’s food, if you drink your roomie’s coffee you will have to replace it, take care of the furniture, parties, or visits are not allowed, etc.

3. Divide expenses

Toilet paper, cereal, coffee, and cooking oil are among the items that are most shared between tenants.

Stick a calendar on the fridge and establish what each person has to buy.

Example:

Week 1: (Roomie #1) has to buy cooking oil

Week 2: (Roomie #2) must buy three boxes of cereal for everyone

Week 3: (Roomie #3) it’s time to buy coffee

The rule is that those shared items are never missing in the house.

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4. Sign your contract as a roomie

Keep things straight from the beginning. Make sure that the contract says: how much you must pay for rent, the deposit amount, what services are included in your rent, percentage of rent each one must pay, when your contract expires as a roomie, if your room includes furniture and the dimensions from your room.

5. Golden rule: if you are going to leave, give previous notice

The rent is divided among those who live in the apartment. If one leaves, it disrupts the entire budget. If you’re going to leave, give at least a month's notice so those who stay have time to get another roomie.

“Six out of ten young people share or have shared an apartment at some point in their lives”, Dada Room.

You and your sweetie must have a budget (Yes or yes)

1. A joint emergency fund 

Each one must allocate a certain percentage of their income for your emergency fund. 

Dear Money recommends the following emergency funds:

• Conservative: Consists of saving the amount necessary to cover your expenses for 6 months. If an unforeseen event happens, you'll have enough time to recover and act calmly. 
• Traditional: Save the amount needed to cover your total expenses for 3 months. 

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