Money is often one of the biggest bones of contention in any relationship. And when you are living together, it becomes even more of an issue because of shared expenses like rent or mortgage repayments, car insurance, utilities, groceries and so on. For some couples, splitting bills 50/50 can seem like a pretty straightforward and fair way to share costs.
But is it really? Should couples simply split their bills 50/50 or are there better alternatives for sharing household costs?
What does 50/50 mean?
As the name suggests, 50/50 means splitting bills equally down the middle so each partner pays 50%. It involves adding up all the monthly bills and dividing them by two.
What’s good about this method of sharing bills?
The 50/50 method is actually quite a common and popular way of splitting bills for many couples.
This is mainly because of its simplicity. Going 50/50 removes the complications and headache of trying to find another method.
With this method, each partner knows where they stand at the end of every month. Splitting costs 50/50 works particularly well when partners have similar incomes.
Any there any better alternatives to the 50/50 method?
While going halfsies might seem like the easiest and fairest way to split bills in a relationship, it’s not always the case.
A perfect example is when one partner earns significantly more than the other. Going 50/50 in this scenario can result in one partner struggling to keep their head above water while the other barely feels a scratch.
Also, if one partner has significantly more financial obligations than the other, splitting bills 50/50 might seem unfair.
Consider a situation where one of you has significantly more student loans and credit card debt while the other is debt free. If you split your household bills evenly in such a case, it might make getting out of debt difficult or even impossible for the person with more financial obligations.
In other words, one partner could be spending their whole paycheck on shared bills and other financial obligations like debt while the other is left with money to burn.
Thankfully, there are a few good alternatives to splitting bills right down the middle.
Splitting bills based on income
Some say that this is the best method to share expenses as a couple.
It might not be as easy and straightforward as the 50/50 method, but it can provide a fair sharing of bills depending on each partner’s ability to pay them.
Under this system, each person’s income is calculated as a percentage of the total household income. You then split total bills based on each person’s percentage.
As an example, suppose you earn £3,000 per month while your partner earns £2,000. That means that you bring in 60% of your total household income while your partner brings in 40%. Under the income-based method for splitting costs, you would cover 60% of the household bills. Your partner would then pay the remaining 40%.
So if your total bills are £2,000 per month:
- You’ll contribute £1,200
- Your partner will contribute £800
Such an approach ensures that both of you are still left with a decent amount of cash to save or spend once the bills are covered.
In a nutshell, the income-based method means that you agree to support each other fairly and spread the load, not causing any one partner to be financially strained.
Each person pays their personal expenses
Another great alternative to the 50/50 approach is to share bills under the income-based method but keep personal expenses like mobile phone contracts, gym and clubs memberships separate.
This could prove to be a fairer method as well as a potential argument saver. This is especially the case if one person has significantly more personal expenses or uses services that the other does not.
Remember
At the end of the day, there is no single best way to split bills in a relationship. The most important thing is good communication with your partner.
As unromantic and stressful as it sounds, an honest and open discussion about your combined financial situation, including how to split bills, is essential to a happy and lasting relationship.
