Personal Finance question (Rent+interent+netflix)

[draxz1289]

I stay with two of my friends. The total rent is $1217 (so its 1217/3 = 405 PP) I pay for the internet 67.68 and netflix 7.99 every month and I am suppose to deduct it , so 67.68/3 = $22.56 and 7.99/3 = $2.66


My question is should I pay $405 + 22.56 + 2.66 minus $50.44 (22.56*2 , 2.66*2) = 379.78

or

$405 - 50.44 (22.56*2 , 2.66*2) = 354.56

[disneysteve]

So you actually pay the internet and Netflix bills but are only personally responsible for 1/3 of each of those. Is that correct?

That means you owe $405 rent, $22.56 internet and $2.66 Netflix, or $430.22/month.

$430.22 - $50.44 = $379.78. That is the amount you should be paying.

Why is your internet bill so high?

[draxz1289]

Since we have the unlimited plan its expensive here in Canada.

I have another question.

Say

Rent is 1217/3 = $405 and internet is 67.68/3 = $22.56 (with no netflix - this was last month)


I was paying every month $385 is that right. I was calculating it as 405(rent)+22.56 (Internet) = 427.56$ - 45.12 (2 share of the internet)

should It not be


$405 (rent ) minus $45.12 (two share of the internet) = 359.88

since 405$ was the rent and I simple deduct 45.12 (since I already paid 22.56)

[Seeker]

This is worded wrong.

You pay 100% of your share of the rent and all the Internet and all Netflix. They want you to deduct their portion of Internet and Netflix.

You pay your share of the rent=$405
You pay the entirety of Internet=$67.68
You pay the entirety of NetFlix=$7.99

Your are "supposed to deduct" your friends portion of the Internet & Netflix:

67.68/3 * 2 = $45.12 (your friends portion of Internet)

7.99/3 * 2 = $5.32 (your friends portion of Netflix)


So essentially the compilation of what you pay SHOULD BE

405 + 67.68 + 7.99 - 45.12 (overpay of Internet) - 5.32 (overpay of Netflix)

480.67 - 50.44

So this would be the end total

$430.23

[Seeker]

Since we have the unlimited plan its expensive here in Canada.

I have another question.

Say

Rent is 1217/3 = $405 and internet is 67.68/3 = $22.56 (with no netflix - this was last month)


I was paying every month $385 is that right. I was calculating it as 405(rent)+22.56 (Internet) = 427.56$ - 45.12 (2 share of the internet)

should It not be


$405 (rent ) minus $45.12 (two share of the internet) = 359.88

since 405$ was the rent and I simple deduct 45.12 (since I already paid 22.56)

I guess I'm confused. The bolded part is also wrong.

Are you not splitting all costs into thirds?

If yes, then the totals all get added together, but not subtracted from the 1/3 of rent you pay?

Do you get free Internet and the other two people pay 150% + 150% -- that's what you are doing with the math.

1/3 of the rent should not be subtracted from. That's already shared in your math.

[draxz1289]

AHH more confusing LOL

You see the total rent is $1217, so per person for the rent alone is $405


So they pay $405 + 22.56 + 2.66 = 430.22



So my share of the rent should be 430.22 minus both their share of the Internet and netflix right

[Seeker]

AHH more confusing LOL

You see the total rent is $1217, so per person for the rent alone is $405


So they pay $405 + 22.56 + 2.66 = 430.22



So my share of the rent should be 430.22 minus both their share of the Internet and netflix right

Wrong.

Your share of all is $430.22
The other friend's share is $430.22
The thrid friend's share is also $430.22

Rethink your math.

If you subtract from your third of the rent, they pay 150% of your share of netflix and Internet and you pay nothing toward those items

[draxz1289]

I see where you are heading, Yes all our share is 430.22 but I pay the internet and netflix through my credit card before the rent is due in full so 67.68+7.99 is paid by me Ie. 67.68/3*2 = 45.12 and 7.99/3 = 5.32 = 50.44 (two their share)

so should it not be "That means you owe $405 rent, $22.56 internet and $2.66 Netflix, or $430.22/month my share.

$430.22 - $50.44(two of their share which I paid) = $379.78."

[Seeker]

We are looking at this from different angles.

If you pay 100% of all these bills, what you subtract out if your friends share of Internet & NetFlix, then DisneySteve's answer is correct.

430.22 - Internet(*2) - NetFlix(*2) costs of your friends.

[Seeker]

I see where you are heading, Yes all our share is 430.22 but I pay the internet and netflix through my credit card before the rent is due in full so 67.68+7.99 is paid by me Ie. 67.68/3*2 = 45.12 and 7.99/3 = 5.32 = 50.44 (two their share)

so should it not be "That means you owe $405 rent, $22.56 internet and $2.66 Netflix, or $430.22/month my share.

$430.22 - $50.44(two of their share which I paid) = $379.78."

Yes, that is correct.

In the OP, the last sentence assumed that your firends are each paying 150% of the Internet & NetFlix costs and you had a deduction of those costs entirely.

[draxz1289]

Phew im gald that was solved.

what about this theory ( for the previous months without netflix)


$405 (rent ) minus $45.12 (two share of the internet) = 359.88

since 405$ was the rent and I simple deduct 45.12 (since I already paid my share 22.56)

is that right or is it $405 plus 22.56(my share internet) = 427.56 minus $45.12 (two internet share) = 382.44$

[Seeker]

Phew im gald that was solved.

what about this theory ( for the previous months without netflix)


$405 (rent ) minus $45.12 (two share of the internet) = 359.88

since 405$ was the rent and I simple deduct 45.12 (since I already paid my share 22.56)

is that right or is it $405 plus 22.56(my share internet) = 427.56 minus $45.12 (two internet share) = 382.44$

Since you've already paid your share and their share, you'd deduct their share from any amount of dollars you like. 382.44 works.

http://www.mathematicalbrain.com/pdf/MALECTURE.PDF

Check out the above article. People think differently about numbers and one person's approach (namely mine) is not always correct.

[Seeker]

To sum this up:

The numerical calculation would always be:

Your share of the rent + your share of anything else - minus their share of what they should have paid.

If you base the calculation upon your original rent alone, then you are deducting too much.

405 + 22.56 = 427.56 cost for each person

Their share is 45.12 (two other people at 22.56 each).

If you give them $359.88 for rent, then you give them 359.88 for rent + 22.56 for Internet = 382.44 then you have not met your third of the rent.

359.88 + 22.56 + 22.56 = 405... but that's the rent alone. Add another 22.56 and there's your full obligation 1/3 rent + 1/3 Internet.

You deduct too much if you deduct from your share of the Rent (alone).

I don't know how to explain it to you, but mathematics is apples to apples comparison.

You cannot mix up the comparisons for the numbers to balance out.

Take the total bill, divide by three. That's your share.

405 rent + 1/3 your share = your cost.

if you pay 405 rent + 100% of the other bill, then 66% of that other bill needs to be brought back to you. Not 100% == and that's where your confusion is.

[TBH]

Who's on first...

[MonkeyMama]

I am confused here. I am an accountant and this made my brain hurt!

The way I look at it is that everyone's share is $430.22.

I presume the other 2 roommates add the $25.22 to their rent? So they both pay $430.22?

If you pay $379.78 (rent) + $75.67 (utilities), then your total outflow is $455.45.

If you go with the $354.56 (rent) + $75.76 utilities, then your total is 430.22 like the others. This makes more sense to me.

I also get $354.56 when I subtract 2/3 of the utility bill from your rent. You've already paid your third of the internet, so you wouldn't add your third to the rent. You would subtract the reimbursement from the other 2 roommates, from your rent.

Thus, the $379 figure doesn't make sense to me. I vote $354.56.

What am I missing here?

In trying to put it simply: if you transacted both separately, you would all pay $405 rent. You would pay the internet and they would both give you $25.22 for their share. If you want to net those out, it is $354.56.

Thankfully, when I lived with roommates, the rent was separate from the utilities. I never had to do this exercise...