Next time you spot your friend some cash, consider this: there’s a good chance that you’ll never see that money again.
That’s right. According to a recent survey, 67% of Americans lend money without ever being paid back.
Not exactly great odds.
And your chances at repayment likely deteriorate further when you’re dealing with groups of friends. After all, you’re not going to take them to court over a few bucks, but all the tiny IOUs can add up fast. So how can you make sure that you’re having fun and sharing costs fairly – or, more important, not being “that guy” who never pays his share yourself?
Here’s a look at some common cost sharing headaches and how you can approach them equitably.
Ah, summer. The perfect time to get away to the mountains, lake, or the beach. Renting a house for a week or weekend is a popular option for many young people. But before embarking on something like this, make sure that all the costs are accounted for. Know definitively who will be staying there, and make sure everyone pays his or her share. Factor in costs of food, water (if you’re in the woods), and other sundries. Finally, don’t forget the security deposit – if something goes wrong and you don’t get it back, no one wants to bear the added cost alone.
There’s nothing like the excitement and possibility of the open road, but costs can ratchet up faster than miles on an odometer when travelling with a group. Gas expenses are unavoidable, and should be split equally, but consideration should also be given to who owns the vehicle your using. After all, all that wear and tear on the car can be expensive – pitching in to have it detailed and serviced when you return is always a nice gesture.
Group dinner parties or barbeques
Group dining has provided job security to advice columnists for decades. There’s no hard and fast rulebook on what’s appropriate or expected, and no one wants to contribute too much or too little. We recommend understanding beforehand who’s doing the cooking and whether they expect compensation for it. Offer to bring a side or some libations to offset your own contribution. And be gracious to your host and mindful of the hidden costs in time and money – for cleaning, dealing with their neighbors, etc. – that hosting a party entails.
Nothing says summer like dancing to thumping beats in a massive field of strangers, and going with great crew of your best buds makes it even better. But the costs involved in a memorable festival experience go beyond the entrance ticket. When planning with your friends, keep in mind costs of gas to get there, camping supplies, food and drink, and parking. Anything can happen out there, so assume that you’ll be doing some additional calculus after the fact to cover incidental expenses that arose.
In all of these situations, accurate accounting is crucial. Make sure you and your friends have a firm handle on upfront expenses before leaving, and keep track of ongoing expenses on your phone while on the road. And when it comes time to collect or pay back your share, use Nooch – the safest, most secure way to share expenses with friends.
And unlike other payment apps, you can even send money to or request money from people who don’t use the service – all you need is an email address.
So if a 33% chance of being repaid doesn’t quite cut it in your mind, choose Nooch to put an end to your friends’ excuses and take control of your finances. Grab Nooch on the App store today and put the odds back in your favor.