Is it easier to achieve financial independence as a single person or a partnered one? Nearly all of the voices in the financial advisory and financial independence communities are married. As a single person in my 30s, I’ve wondered if it’s still possible for me to achieve my goal of becoming financially independent in my 40s.
I want to first explore the advantages of being partnered. In my next article, I’ll flip the scales to discuss the advantages of being single.
From any absolute measure, married people have the vast advantage over single ones. The United States has more than 1,000 laws that provide financial benefits to married people. As per the law, married people pay much lower taxes per person. And that doesn’t even include the many benefits that companies offer to married people, such as obscenely discounted healthcare.
Married people have a net worth 77% higher PER PERSON than single people. When a single woman dies, the government reclaims her Social Security. When a married woman dies, her Social Security goes back to her family.
A widow can claim her own Social Security or her deceased husband’s, whether she ever had a job or not! Note — she’s not getting HALF her husband’s social security. She’s getting all of it. If that’s not some crazy, I don’t know what is.
Jacob from Early Retirement Extreme says married vs single has been a financial wash for him — after housing, he lives on $7k regardless ($7k before getting married vs $14k joint), saying that he saves on some things by being married but also buys some things that he wouldn’t normally buy, such as things that his wife wants but he’s not as keen on.
At face value, assuming you’re on the same page about everything, it’s definitely easier as a married person. You’ve got 2 incomes and significantly less cost per person. It would be cool if one could just take the cost of married life and cut it in half for a single person, but that’s just not the case.
Two incomes aside, there are other incredible perks of being partnered. Some blogs even list partnering as one of their secrets of financial independence — check out this article from Tread Lightly, Retire Early.
Advantages of Coupledom
Right out of the gate married people already have the upper hand. Getting married is a GLUT of household and cash freebies for no discernible reason.
Let me single-brag for a moment that I purchased all my dishes myself (second-hand) and my pots and pans and appliances, some from yard sales. I bought my own furniture. And while I’m acting a bit victim-y about it, what I’m doing actually makes more sense than demanding that other people give me things. The truth is that the custom of buying a giant brand-new kitchen for people who already have two of everything doesn’t make any sense anymore.
__
Save on static costs (that don’t go up regardless of the number of people in your household. For example:
- Housing. This is the biggie. A one-bedroom apartment costs the same whether you are single or coupled.
- Next is transportation: you can share one vehicle. $$$$$ savings
- Basic furniture (couch, table and chairs, bed)
- Utilities such as garbage collection, wifi, and heating costs
- Gift giving. For example, say you want to bring a host gift. A bottle of wine is a great one. Half a bottle of wine, not so much.
- Same number of household tasks and errands. For example, it takes the same amount of time to make dinner or grocery shop for two people as it does for one. But as a couple, there are two people to do them instead of one. That extra time can be used in any number of income-generating ways.
__
As a couple, you harness the power of choice to optimize your spending. A couple examples of many:
- Choosing healthcare: Couples get the choice of 2 employer health insurance plans and can choose the optimal one
- Two people can accumulate airline points, then if one needs to go somewhere, you can choose between those two airlines based on which has the better deal.
__
Less outsourcing:
When I get older, I’m going to need to outsource things like caregiving.
Having two people makes it a lot easier to DIY around the home. Here’s a list of things I outsource as a single person of small stature:
- moving house
- anything that involves heavy lifting, because asking friends starts to feel moochy after a while. This includes putting together large pieces of furniture and buying large items on craigslist. TaskRabbit is my friend.
- things like laying tile or even fixing the dryer (because I can’t pull it out on my own). Luckily, by renting, my rent covers this particular outsourcing task.
__
Revenue generation:
Couples combine two sets of skills and can tag-team any business. One person might be great at the math and planning, while another is great at marketing and meeting people.
I’ve chosen to NOT pursue the real estate flipping route because the number of tasks I’d need to outsource would negate any profits.
__
Bulk discounts:
- Costco — no way I could use up things fast enough to benefit from Costco
- Lots of deals for two, such as “Dinner for two” on Groupon
__
Let’s not forget that couples can harness the benefits of privilege:
If you’re from a community that statistically earns less, such as women, minorities, people with disabilities, or even if you’re just starting your career, a partner with more privilege is an incredible financial windfall. They’ll likely earn more income, they may be able to use their network to help you get jobs you otherwise might be passed over for.
A more privileged partner can be the face of your side hustle in a way that minimizes the prejudices you experience. They have access to more privileged communities that have wealth lying around to spend — hopefully on your business! 😉
All in all, being partnered is an incredible asset toward financial independence. But it can also absolutely decimate your finances. In the next article, I’ll explore how singles easily skirt the pitfalls of partnership and sometimes even come out on top.