Episode 125: Figuring out how to split expenses within groups can be challenging. Tune in for tips on how to share costs and expenses with multiple people while traveling on this episode in the Where Our Money Went series.
How to Split Money During Group Trips
Kevin was at a three-day business retreat, so he spent money there. He discovered some useful information as making purchases as a group while there.
Rather than splitting bills and paying for mutually beneficial things, people usually combine their expenses and have one person pay.
Kevin recommends using an app called Splitwise, which calculates how much people owe you based on your group size. At the end of the trip, it totals the amounts and directs everyone to pay one person rather than giving everyone something. Instead of paying Kevin $20 for this and Sean giving you $20 that he owes you, the app would direct that Sean pays Kevin $20.
There may have also been a super fancy dinner split between 12 people that was not frugal, but totally worth it.
The Benefits of Bulk Buying
Speaking of groups, buying in bulk and grouping purchases can also work at home.
Sean checks his expenses using Mint at the end of every month to determine where his money went and why. This month he noticed that his grocery expenses were higher than usual. The reasoning? Bulk buying.
In recent months, Sean has been trying to let go of the monthly budgeting for groceries. Bulk purchases may drive up the expenses in one month, but carry over into savings during other months.
In our recent episode, How to Implement a Money Management System, we talked about creating separate budgets for different things. Separating out bulk groceries might be an effective way to monitor those expenses better. Alternatively, separating foodstuffs from other necessities, like toilet paper, shampoo, etc.