The subscription economy has made growing leaps and bounds due to the convenience that it provides to customers. Over the last ten years, the market for subscriptions has grown 437%! Nowadays, it seems like everything is a subscription.
Adding to the confusion is a rise in roommates and the sharing economy. According to Pew Research, about one-third of adults live with roommates in the United States. With so many subscriptions and recurring bills, keeping things organized with roommates is a challenge.
So what can you do to stay organized?
The latest trend, and one that solves the organizational challenge, is to use split bills automatically through sharing subscriptions.
With the rise of subscription services, it only makes sense for people to start sharing them. The sharing economy is also a growing consumer trend itself. Fortunately, now you can use the same tools to organize all recurring bills and automate bill splitting to help your household and family. Everyone can stay organized and split costs automatically.
How This Works
Managing shared subscriptions or recurring bills first requires tracking the cost. Some tools make this even easier than trying to remember or write down every bill. We recommend WellPaid as the simplest tool to identify both subscriptions and recurring living expenses. Tools like WellPaid connect to your bank and card accounts to hunt for recurring charges or merchants that commonly have subscriptions.
However you create a complete list of subscriptions and bills, the next step is to divide up who owes what for each bill. There are multiple tools to help with this, like this free rent splitting calculator, but it is easiest to keep this organized in one place.
All roommates or persons sharing the bills should agree to the plan. It may sound confrontational, but we recommend getting this in writing or at least saved somewhere that can be referred to later.
Next, you can setup automated bill splitting or a recurring transfer to split the costs of your subscriptions and bills. Some tools can send a fixed amount, but the newest and easiest to use tools even allow for sending a percentage of a bill charge automatically.
Our favorite is again WellPaid. Once both your roommate and you agree, the service can automatically identify charges from a merchant and transfer everyone’s share to pay you back.
To set up the service, you select a recurring bill in your account, tag your roommates, and then specify how to split the bill. After your roommates approve the request, the service works like autopay for transfers and sends a transfer from your roommates directly to your bank. The service claims that it removes the need for monthly requests or reminders.
Sharing Subscriptions, Bills, and Living Spaces
Overall, the most effective way for someone to maintain their standard of living while cutting their monthly expenses is by living with roommates. With roommates, the cost of living expenses, which are often 30-50% of a person’s overall spend, is split.
In today's economy, splitting bills is becoming the norm for people to save money. Sharing Netflix, Spotify and Amazon Prime, are probably the most talked about shared subscriptions. However, people have been sharing recurring bills like rent or utilities for a long time.
Fortunately, the same tools used to automate bill splitting for living expenses like rent or utilities can be used for subscriptions. To services like WellPaid, tracking or automatically splitting recurring bills and subscriptions is the same. In fact, it might be easier to just keep all of your bills together and these tools automatically hunt for both types of recurring charges for you.
However, you identify and split recurring bills, we hope you plan ahead and keep subscriptions organized. The number of subscriptions and bills is only expected to increase, so using a tool might be helpful to keep yourself out of trouble.