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!
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.
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.
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 :)