Which option makes more financial sense: living alone or sharing an apartment?

If you've attempted to rent an apartment in Lagos recently, you're likely aware that rental costs have nearly doubled or even tripled since 2021.

A basic rent of 1.5 million naira is barely enough to secure a decent 2 bedroom apartment in areas like Ikeja, Gbagada, or Surulere.

Most rental agents will almost laugh at the amount, saying, “You need to increase your budget, madam,” as if you are in Lagos solely to spend all your money on rent.

My friend and I realized that we could save significantly by sharing an apartment instead of paying separate rents.

Let's break down the typical expenses associated with living alone:

• Rent: The biggest expense. Depending on the area, a one-bedroom apartment can range from ?500,000 to ?1,500,000 annually.
• Utilities: Electricity, water, and waste disposal fees can add up to ?30,000 - ?50,000 per month.
• Internet: costing around ?10,000 - ?20,000 monthly.
• Household Supplies: Buying furniture, kitchen appliances, and other necessities will require a significant initial investment.

By splitting the cost of rent and utilities, you can save a substantial amount of money each month. Here’s how the costs typically break down when you share:

• Rent: A shared apartment could reduce your rent expense by half or more. For instance, sharing a two-bedroom apartment that costs ?1,500,000 per year would mean each person pays ?750,000 annually.
• Utilities: Shared costs for electricity, water, and internet can lower your monthly bills to about ?10,000 - ?25,000 per person.
• Household Supplies: Shared responsibilities for purchasing furniture and other essentials mean less financial burden for each individual.
• Miscellaneous Expenses: Shared costs for maintenance and repairs can also help you save.

Imagine what you could do with that extra money—whether it's building your emergency fund, investing in stocks or mutual funds or paying off debts faster.

Ultimately, the choice between living alone and sharing an apartment depends on your personal preferences and financial goals. Here are a few tips to help you decide:

1. Assess Your Finances: Calculate your monthly income and expenses to understand how much you can afford to spend on rent and utilities.
2. Consider Your Lifestyle: Reflect on your need for privacy versus your willingness to share a space with others.
3. Set Financial Goals: Determine your short-term and long-term financial goals. If saving and investing are priorities, sharing an apartment might be the better option.
4. Research and Plan: Look for potential housemates carefully. Ensure they have a stable income and a compatible lifestyle.