Introduction:
This article discusses a problem faced by the writer, which is how to divide shared expenses between her and her friend, who is less wealthy than she is. The writer reviews different perspectives and offers advice on how to handle this issue.
Proportional Expense Sharing:
The writer suggests that the best way to divide expenses is proportionately to income. For example, if your friend earns $2000 a month and you earn $1000, he earns about 67% of your combined income – he should pay the same percentage of the shared expenses. The writer mentions that she has calculated the numbers and found that, thanks to earning $10 more per hour, her friend makes over $20,000 a year (before taxes), which is not an insignificant amount. However, the writer reminds that she receives cash gifts from her family, which complicates things a bit.
Not Accounting for Savings and Assets:
The writer emphasizes that savings or assets should not be counted as income that you’ll spend on rent or expenses. Why? Because if you have to rely on a limited amount of money in your savings account to pay your bills, it indicates that you may be living beyond your financial means (and you don’t want to exhaust your emergency fund unless absolutely necessary). Even though any stocks or bonds you receive contribute to your total wealth, they don’t put any money in your hands unless you sell them, unless you are receiving dividends and choose not to reinvest them. You shouldn’t sell your assets to pay rent except in emergencies. Therefore, your friend should not count them as part of your income.
Cash Gifts:
The writer points out that you should consider if you receive large cash gifts regularly from your family. If so, they should be counted as part of your income, similar to a bonus you might receive from your job. For example, if your family gives you cash gifts totaling $20,000 a year, it might be fair to split the rent 50/50. However, since these gifts are irregular, it is not wise to rely on them. Your family’s generosity or their financial situation may change, meaning the gifts could stop at any time.
Your Friend’s Financial Issues:
The writer notes that financial support for kids and debts are not discretionary expenses for your friend. He has to send this amount to his ex-partner for his children regardless of financial circumstances. Debts can be viewed in the same way. Thus, even though his income might be greater than yours, he may not have a large budget. And while this may not seem ideal – or even fair – it is a reality of his financial circumstances. He may not be able to contribute as much from his income towards rent, utilities, groceries, and other expenses.
Open Dialogue:
The writer emphasizes that you should not shoulder the burden because of your friend’s current financial situation. So what should you do now? You should have an open dialogue about income (gross income, including any gifts) and create a budget that combines both parties’ contributions so that neither has to pay more than they can afford. Look at how much each of you can reasonably contribute to rent and other expenses and use that as a guide for where to live. It may turn out that the areas you love are outside of your budget. Is there a different, more affordable neighborhood? You won’t be able to answer those questions until you both have this dialogue.
Cooperation:
And Sacrifice:
If you are planning to stay together for a long time, you will need to get used to dealing with difficult financial problems like this one and others. Remember that the relationship should give you both a chance to improve your financial situation by combining efforts. So, don’t be too strict in your pursuit of fairness so that neither of you has to live beyond your financial means. If you do that, you might both lose – financially and in the relationship.
– Christine
Source: https://www.thebalancemoney.com/i-m-rich-but-he-s-not-how-do-we-split-rent-6735935
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{
}@media screen and (max-width: 480px) {
.lwrp.link-whisper-related-posts{
}
.lwrp .lwrp-title{
}.lwrp .lwrp-description{
}
.lwrp .lwrp-list-multi-container{
flex-direction: column;
}
.lwrp .lwrp-list-multi-container ul.lwrp-list{
margin-top: 0px;
margin-bottom: 0px;
padding-top: 0px;
padding-bottom: 0px;
}
.lwrp .lwrp-list-double,
.lwrp .lwrp-list-triple{
width: 100%;
}
.lwrp .lwrp-list-row-container{
justify-content: initial;
flex-direction: column;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
“`html
Leave a Reply