Today, more people live alone than during any other time in history. Demographers are worried as the number of singles continues to rise.
This phenomenon is due to many factors. Society doesn’t frown upon singles as in the past, women have become more independent, and the number of divorces has increased.
Years ago, millions of people might have wanted these things; however, they didn’t have the resources, there wasn’t a welfare system to protect them, and they were culturally stigmatized.
With all this in mind, does being single save you money? We’ll explore just how much money you can save on different daily expenses when you don’t have a partner.
Housing: the greatest amount of savings
Let’s start with the biggest expense of all. Whether buying a home or renting, living as a couple cuts this expense in half. It’s no coincidence that in the United States, only 58% of single people own a home, compared to 90% of married people.
Couples are more likely to obtain a better mortgage loan, adding to these savings. Being in a relationship increases your chances of being approved for a lower interest rate or a higher amount since banking institutions consider marriage a stabilizer.
It isn’t always the best option to buy the most expensive house or ask for the highest loan the bank can grant. Keep in mind that your monthly mortgage expense should not exceed 30% of the income of both parties.
Travel together whenever possible
Sharing one vehicle provides the same benefits as sharing a house. However, this is difficult in most of the U.S., and only a minority of couples are able to share a vehicle.
Consider the fuel economy for all the shared trips made in the same vehicle! This option works well for couples who often go to the same places together.
You may also save on auto insurance as many companies offer family plans cheaper than two individual policies.
Buying for two is cheaper
Shopping for groceries is cheaper if you buy in family size, which is difficult to do if you live alone. Going to the supermarket is much more expensive if you are single.
You can do a few interesting supermarket tricks to reduce your bill. For example, for items that only come in family size, singles must either plan their meals very well or be forced to throw away a significant part of what they buy because it will spoil.
Eating out is much more expensive than eating at home. When you’re alone, you’re more likely to eat out than when you live with a partner. A person spends 25% less on food living with a partner than if they live alone.
Going out together
Singles spend more on entertainment, leisure, and dining out than married people.
Going out can cost a lot of money. It is often more expensive to have fun alone than with company. Of course, there are plenty of ways to have fun without spending money, but many of those things are more fun with a partner.
Health insurance cost-sharing favors married policyholders.
Many companies offer health insurance to employees and their families. If one partner has an excellent health insurance policy through an employer and their partner doesn’t, getting married is the easiest way to ensure they’re both covered.
This just about cuts the maintenance of two individual policies in half.
Singles pay more taxes
Those who are married have higher tax deductions than those who are single. As a result, married couples who file taxes jointly have the potential to save thousands of dollars each year.
On average, single taxpayers pay 35% of their income to the IRS, compared to just 29% for married couples. Filing a tax return jointly with your spouse provides many advantages.
It is common for couples filing jointly to qualify for several tax credits, including the Earned Income Tax Credit, American Opportunity and Lifetime Learning Education Tax Credits, Exclusion or Credit for Adoption Expenses, and the Child and Dependent Care Tax Credit.
On the other hand, couples filing separately receive little tax consideration. As a result, separate tax returns mean paying higher taxes with a higher tax rate.
Savings and personal finances
Singles contribute lower amounts of money to retirement savings plans. Single people generally postpone retirement planning until age 40 and contribute lower amounts to their retirement fund. Planning for a family increases the stability of couples, providing extra motivation for savings and investments.
There are many advantages for married couples saving for retirement. Married couples tend to start saving earlier, making their retirement easier and potentially more lucrative. 63% of married people are saving for retirement, compared to just 44% of single people.
To save for retirement successfully, you need willpower and limits. When it comes to making an effort, there is nothing better than doing it with someone else, as you’ll support each other when one of you falters. Achieving financial freedom is easier with mutual help.
Also, don’t make large purchases with your shared money without consulting the other person first.
A world made for two
Many expenses are identical whether you are alone or with a partner. These include house taxes, internet, streaming, cable television, gifts, and shipping costs for home orders.
However, couples and families may get offers such as cell phone plans and gym membership discounts.
Tourism is also cheaper for a couple, and not to mention more fun. The cost of a room is usually the same price for a single guest as it is for two.
In addition, discounts and offers for tour packages that include planes, hotels, etc., are usually much easier to find when traveling with two or more people than when traveling alone.
Unfortunately, there can be unforeseen events in life. When accidents, illnesses, or job losses come, it is always cheaper to have someone at your side to help you.
Many activities take more time for one person than for two.
As a couple, you share tasks and responsibilities such as washing the dishes, paying the bills, and taking care of the children. This will save you a lot of time. As we all know, time is money.
Does being single save you money? Not exactly! Life as a couple allows you to save 30% or more than if you were to live alone, as long as your household does not overconsume.
Life is also better when you have a supportive partner. Being single is great, but living as a couple can be extraordinary.
Single people are more likely to fall into a financial rut because they must bear all the responsibility for their bills and payments alone. Americans have configured society to make life easier for married couples.
So, if you’re thinking of living with the love of your life, money won’t be an inconvenience.