Some people may not want to get married, but the financial advantages could be enough to sway their mind-set. Everything from shared incomes to different tax rates can make marriage a good financial move for those struggling to make ends meet.
According to a study from the MetLife Mature Market Institute and the Society of Actuaries, single people have the lowest income level at an average $32,000, smallest asset total at $110,000 and the lowest homeownership rates at 43 percent. In addition, just 17 percent claim to be on track with their savings to enter retirement, while one-fifth have not yet started to save money for when they leave the job market.
Additionally, the study, which examined couples and single households between the ages of 45 and 80 years of age, found that couples were much better at paying down debt, ranging from credit cards to mortgages and auto loans.
It appears, that when you have someone to work with, people become more motivated to get their financial lives in check, Schwing added. This could be the result of a certain mind-set where one half of a couple wants to ensure the financial security of the other should they suddenly pass away or encounter another life altering event.
Financial Planning For A Single Person
Although there are a number of financial advantages to marriage, that doesn’t mean a single person is automatically in a tougher position. After all, single people only have to worry about their own expenses, which can make it much easier to make a budget.
One of the biggest expenses a a single person has to worry about it their housing. This is because if they even make any major financial missteps, or lose their job for example, they won’t have a secondary income to rely on to pick up the slack.
However, if a sudden bill threatens your ability to pay rent of make your mortgage payment, cash loans now may be able to help you. Just ensure this loan option isn’t a major part of your long-term housing plan.
There may be some risk for a single person to purchase property. While it may be in their budget to meet monthly payments, an unexpected repair bill, cost of insurance and property taxes could add some serious pressure to their housing budget. With this in mind, some single people may want to continue renting property until they are absolutely certain they can afford homeownership. Keep in mind, most experts recommends your housing costs not exceed more than 30 percent of your take home pay.
Utility bills can also be expensive to pay on your own. While payments for electricity, gas, heat, cable and internet may be inevitable, small changes to your everyday habits could reduce these costs.
For example, make sure to turn off all electronic when they are not in use, and turn off the lights in rooms that aren’t occupied. If you pay for water, taking short showers and turning off the faucet when you brush your teeth can help save money.…