4 ways to avoid financial fallouts when living with friends
Being up-front about your finances can help you avoid issues when sharing a home with friends, says Vicky Shaw.
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Your support makes all the difference.The reunion of the cast of US sitcom Friends has brought back warm feelings of nostalgia for the characters navigating flatshares and moving up the career ladder.
To mark the occasion, MoneySuperMarket has compiled its top tips to help prevent friends falling out over finances.
Sasha Evans, a money expert at MoneySuperMarket says: “Living with friends can of course be a wonderful experience but, in reality, financial issues can threaten domestic bliss. So we’ve brought together some of our top tips so you and your friends can avoid any financial fallouts.”
1. Be upfront about your finances
Try to be relatively open about your finances. Research suggests over a third (39%) of people find discussing their finances can make their heart race or make them feel stressed. But the trick is sharing the correct information.
You don’t have to disclose your salary. But it definitely helps to share your expectations regarding how much you’re happy to pay for bills such as energy, TV and entertainment packages. This will enable you to choose the right providers and policies for your household’s needs.
2. Money is an ongoing conversation
When you live with friends, money is a regular issue. So have money chats on a monthly basis. Scheduling a meeting to talk about money with your friends might seem a bit formal – but you can touch base over a drink or a meal. Just make sure you’re talking regularly to make sure you’re on top of your collective outgoings and that bills aren’t higher than they need to be.
3. Make sure you budget
When you move in with friends you’ll likely be splitting a range of bills, such as rent and utilities, entertainment, insurance and, in some cases, food. It’s important that you budget and understand how much each of you has to pay every month – and what you will be expected to contribute.
4. Get savvy and shop around
With monthly energy bills for some households costing around £90, outgoings can quickly add up. But by ditching and switching, you may be able to save yourselves hundreds of pounds that could go into savings – or perhaps be put towards enjoying time well spent with your friends.