Journal · Friends and money
When to split 50/50, and when not to
When an equal split is fair, and when to split by income, by use or by choice instead.
Splitting everything down the middle feels fair and simple. Often it is. But sometimes an equal split quietly costs one person more than it should.
When 50/50 works well
- Both people earn and spend in a similar way.
- You share things equally, such as a meal you both ate.
- The amounts are small, and it evens out over time.
When it does not
- Different incomes. If one partner or housemate earns much more, equal splits of big shared costs can squeeze the other.
- Different use. One person uses the car every day, the other twice a month.
- Different choices. One friend chose the expensive restaurant, the other would have been happy at a hawker centre.
Other fair ways to split
By income. Each person pays a share in line with what they earn. If one earns S$6,000 a month and the other S$4,000, they split shared bills 60/40.
By use. Split by how much each person uses something: rooms, data, kilometres driven.
By choice. Whoever chose the upgrade pays the difference. If the group would have spent S$40 a head and one person wanted the S$70 set, they pay the extra S$30.
Talk about it once
The method matters less than agreeing on it. Have the conversation once, write down what you decided, and review it when something changes, such as a new job or a move.
Couples
For couples who share a home and a budget, Goldmend Money is planning Pairly, an app for couple budgets. Perpax focuses on friends, housemates and groups.
With Perpax
Perpax, coming soon from Goldmend Money, will split equally, by share or by exact amounts, so each group can choose the method that feels fair.
General information, not financial or legal advice. Figures are examples. Check your receipt and official sources.