Now that I’m in my 40s, I meet a lot of single people. Maybe they’re divorced or what have you. A lot of them seem totally focused on staying single, yet they want to be financially independent.  This is a shame because in staying single is building wealth with the brakes on.  That is, if you are in a marriage where you work well with your partner, your wealth really improves.

Here is an example from a Facebook group I’m part of.

stay single forever and build wealth with the brakes on

 

And here is the same perspective on Twitter. Its popular.

stay single and build wealth with the brakes on

This attitude is a shame, because staying single but wanting financial independence is building wealth with the brakes on.

Here is a research finding:

Findings show married couples have higher levels of wealth than all other household types.
– Asset holding and net worth among households with children: Differences by household type. Grinstein-Weiss, et al. Children and Youth Services Review, Volume 30, Issue 1, January 2008, Pages 62-78.

This just one example, but the finding is consistent wherever you look.

Why do married people have higher levels of wealth?

There are economies of scale, but also a number of significant tax and fixed expenses benefits.

  • Pooled incomes give both people more options
  • Married people file in tax brackets that are often effectively lower than singles.
  • Married people often get reductions in long-term care insurance, homeowners and auto insurance.
  • Couples that are married typically qualify for more advantageous loan terms and often have better credit.
  • Health insurance.  If both people in the couple offer health insurance, they can choose the plan that’s cheapest for them.

Hat tip: Investopedia.

Take Off The Brakes

So here is the takeaway, if you single, consider getting a partner and teaming up with them.  Being single is basically wealth building with the brakes on.  You have none of the economic or tax benefits married couples have access to.  In contrast, if you are happily married, you’ll have have someone to share your struggles with. And, since since you’re typically living together you’ll realize household economies of scale – including only having to pay one rent payment or one utility bill (instead of two).

Read More Great Articles On Couples Finance

What Dave Ramsey’s Take On Marriage Is Missing

The Grass Is Greener Where You Water It

Yes, Unilateral Decisions Affect Relationships

Getting Together, Getting Hitched – Prenups And More

Yes, Married People ARE Richer

Why Does Marriage Build Wealth?

If you are married and its been good for your finances please leave a comment below!


This entry was posted in Personal Finance and tagged , , , by James Hendrickson. Bookmark the permalink.

Avatar photo About James Hendrickson

James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

Couples Finance

Blogs You Should Read

Companies Supporting The DINKS

Please consider visiting our gracious supporters:

Get an education with the Online Certificate Programs at Washington Tech

7binaryoptions.com: Your one stop information source for trading binary options.

Get the Latest Coupon and Discount Codes at Freecouponcodes.net.

The best cheap web traffic that comes in handy for your website traffic needs.

Shop till you drop and discounted offers with Shopee promo codes.