by
Carl Hampton
12/21/2006
Of course the cost of being married differs
from the cost of being single. As with
anything, there are advantages, and
disadvantages. Although married life sounds
stable, there are more benefits to being
single, in the short and long term picture.
If you calculate married life down to a
month-to-month basis, which is what most
couples do, then you would see that married
life doesn't cut it. After the honeymoon
phase, couples tend to invest in more mature
assets like a more luxurious vehicle, a
home, and insurance. But here are some
initial benefits of marriage:
A married couple pays substantially less
when dealing with the cost of living
compared to a single person. A single person
pays 23% of their monthly income for rent,
whereas a couple will only have to outlay
9.3%. For food, the couple will pay 5.6%
versus the 8.3% expenditure of the single
person. For auto insurance, married couples
are placed as a lower risk so they save
money on that too. The list goes on and on.
Married couples benefit from both federal
and Social Security taxes when it comes to
the cost of living. When joint-filing taxes
are completed, there is a lower tax rate so
that they only pay out 29% of their income
whereas a single person pays out 35%. Those
that are married are also less likely to
spend on things they did when they were
single, like gym memberships or clothes.
But there are some hefty costs that come
with marriage. Retirement becomes more of a
reality when couples get married. On a
monthly basis, a good percentage of their
income is dedicated to retirement. Whereas a
single person does not start saving for
retirement until their 40's. Married couples
tend to purchase a house or a condo within a
few years of their marriage. Married couples
account for 77% of all homeowners. The
purchase of property is a good investment
because the couple can build up equity.
However, such a significant purchase brings
on bigger expenses like maintenance of the
property and homeowners insurance.
As outlandish as this sounds, single people
can readily afford to purchase a home.
Although the down payment is the most
difficult thing to acquire, singles benefit
from tax codes. The annual standard
deduction is higher for the single person
than that of a married couple (if you divide
the annual deduction of the married couple
in half). It has been shown that singles
that put effort into financially prudent
ventures end up better off than their
married friends. Married couples use up
every penny of their monthly income on
living expenses whereas singles can save up
to 5% of their monthly income. When a child
enters the picture, those that are married
begin to see some financial trouble. The
total cost of one child per month equals out
to $4,000 a month. And if private school is
the choice of education, then bills double.
Have an opinion or a question you would like
me to answer? Write to me!
http://www.CarlHampton.com
