What is the Best Way To Share Expenses When Living Together?

You’ve decided it’s time to move in together. It’s a big step in your relationship, and you’re excited about the future. You’ll have to each decide which of your belongings you can share in your new place.

Another thing you’ll have to figure out? The best way to share expenses when living together.

Choosing whose couch or dishes to use might not be too difficult. But deciding how to divide up your living costs can be a more significant challenge.

One of you might want to split each bill equally, and the other wants to use a percentage of your income to figure out what you pay. Each person paying specific bills is another option. Some couples prefer to pool all of their money together.

The great thing is, there’s no right or wrong way.

The best way to share expenses when living with your partner — is the way that works for both of you. We’ll take a look at 6 different options below and some personal and financial considerations to help you decide.

Make Your Plan Early

Once the initial excitement of moving in together fades, reality sets in. You’ll go to work, get groceries, do laundry and vacuum, go out with friends, and pay bills — just like you did when you lived apart.

You like to get your car washed each week and have no interest in cutting cable TV. Your partner prefers the AC on all the time and could care less about turning lights off when leaving a room.

While none of these were issues before moving in together, they can indeed become a source of tension when you have joint finances.

Before you decide how to share expenses, consider different options. If you believe putting money together is a vital sign of commitment, ask yourself why.

If you have a smaller income or more debt than your partner, how will splitting expenses 50–50 make you feel?

You can be in love and still disagree about how you should budget and spend money.

While you can certainly change how you’re sharing expenses if your plan isn’t working, being proactive and talking about it before moving in together can help prevent issues in…