Best strategy for split rent.

I currently split rent.  I pay the total: $3600

My portion is: $1900

My roomies portion is: $1700

My current strategy is to set my rent category at $1900 and then when i get the $1700 I just add it directly to the category so I end up with $3600 available.  What I like about this is that it accurately portrays what I spend and I don't think adds income.  

The downside is that if my roomie pays me late (sometimes I float the rent for them) I'm not sure how it would work.

Is there a better way I could be doing it?  Thank you! 

10replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • When do you pay and when does roommate pay you (both nominally and worst case)?

    Do you anticipate other expenses (utilities, groceries, etc.)?

    Generally, you're thinking about it correctly to categorize roommate's inflow directly to a category rather than as To Be Budgeted. The only question is what happens in the budget.

    Like
      • TerbaTron
      • my mom is an accountant. I think I love budgeting
      • Green_Boat.7
      • 4 mths ago
      • Reported - view

      dakinemaui I typically pay on the 25th.  The roomie pays typically between the 15th and 1st of the next month. They are fairly inconsistent.  We don't split any other items in a similar way.  

      Like
      • dakinemaui
      • dakinemaui
      • 4 mths ago
      • 1
      • Reported - view

      TerbaTron When you send out $3600 before receiving roommate's half, you've effectively stolen from some other category. The available amount shown in some other category (or categories) is flat out wrong, and YNAB won't let that situation persist past the month boundary. Even before the month ends, inaccurate category balances can be a problem, especially for tight budgets.

      If you have an emergency fund category, you might consider carving off $1900 of it to make things easier on your budgeting process. This way all categories stay accurate. Instead of "paying the rent back", your roommate pays the "cushion" back. (In a big emergency, you could pull that back if it were still available.)

      I would also switch to using a category specifically for your roommate's portion. This prevents any mixup happening in the rent category between months. Record your rent payment as a split transaction, one split to your rent category and a second split against your roommate's category. Budget $1900 to this category as a one-time setup. If his category is ever below $1900, then he owes you. (Tip: add "$1900" to the category name for reference.)

      Like 1
      • TerbaTron
      • my mom is an accountant. I think I love budgeting
      • Green_Boat.7
      • 4 mths ago
      • Reported - view

      dakinemaui I gotcha. I have been trying to decide if their amount should get a category.  Money isn't really tight so I can pretty easily "steal" from another category.    I have this months and next months rent fully funded and I think I can continue that into the future, they are never more than a day or two late.  A specific category would be more useful if things were tighter correct? 

      Like
      • dakinemaui
      • dakinemaui
      • 4 mths ago
      • Reported - view

      TerbaTron A specific category just keeps things from getting lost/forgotten.

      I just prefer a system that is automatic. Since money isn't that tight, it should be possible to devote enough toward enabling an automatic process.

      The issue is dealing with YNAB's correction if you end the month with a red category. You can deal with it each time it happens, if you prefer.

      Like
      • TerbaTron
      • my mom is an accountant. I think I love budgeting
      • Green_Boat.7
      • 4 mths ago
      • 1
      • Reported - view

      dakinemaui Cool, I think I will try out with the category.  I appreciate all of your help! 

      Like 1
  • I do it the same way with two other housemates, I pay 50% and they each pay 25%.  My rent category is always a month ahead for my share .  On the first of the current month I budget my share which brings the total available up to 100% of the total (because the category is funded a month ahead).  The payment is made on the 3rd day of the month and they will usually pay me within the first week, sometimes the second but the full amount is always available in the Rent category of my budget.  When the payment is made, and if they haven't paid me, their contribution just brings me back up to my share.  If they happen to credit me before the payment is made, the category is inflated for a short while.

    The key for me is having my share a month ahead so I'm not stealing from other categories to make the difference for a few days.

    Like
      • TerbaTron
      • my mom is an accountant. I think I love budgeting
      • Green_Boat.7
      • 4 mths ago
      • Reported - view

      QC Thank you!  A question though: do you have your rent category for just your portion? Or the whole amount you pay each month? 

      Like
      • QC
      • HaplessFinanceProfessional
      • Queenofcoin
      • 4 mths ago
      • Reported - view

      TerbaTron My rent share goes in each month which is 50% and when my roomies credit me, those funds are inflowed to the category and not TBB. 

      Because my share is 50% and a month ahead, when I budget on the 1st it comes up to 100% because I am putting in my next months share. 
      This way I’m not moving around money from here to there every month which I know I would eventually mess up somehow. 
      I should add that we use Splitwise which I find really helpful in keeping track of the amounts and who owes what etc. 

      :)

      Like
  • As and Idea, you could it up as two categories.  One for your portion and one for theirs.  Then you budget the 1700 into their one. Then when you pay it it goes to zero, when they pay you back it goes back to the 1700. Then you always have that amount available in case they are really late.

     

    Just an idea :)

    Like 1
Like Follow
  • 4 mths agoLast active
  • 10Replies
  • 89Views
  • 4 Following