Is Single Money Different?
Posted by Gail | Filed under Money Management
When I ask people what they’d like to see me cover on the blog, I get a lot of people asking me for more information for single people. I’m not sure why managing your money as a single is any different than managing it as a family.
So I asked. Here’s what some of my Tweeps said:
It’s harder to pay rent…sometimes I waste food because I have no freezer space and no one to eat with!…
To which I responded: you need to learn to cook for 1 m’love, that’s not $$. Throwing food away is never smart, but it doesn’t have anything to do with money management.
Money needs to get stretched further to cover expenses vs having two incomes covering expenses
Often 2 incomes also come with higher expenses, and the stretching part is behaviour not $$ rules.
waaaaay less disposable income
Nope, that’s not it! I’ve seen the numbers and that’s NOT it. With all the financial paperwork I’ve sifted through, having more money is not the solution to bad money management. Higher income doesn’t automatically translate into more disposable income. And having more money does not make things easier if the plan has holes in it.
Single income means EVERY bill being paid from your salary. Another working person in the household would mean more savings.
Wish that were true but often being double means other people spend your money without your permission! Have you seen the number of people whose spouses dig ‘em into a debt hole?
There is no wiggle room … only me to rely on. Can’t depend on another salary if I need it for a moment of bad budgeting
Hey, that’s what a curve ball account is for. And plenty of doubles find their “better” halves messing up their money.
unemployment, sickness you won’t have a 2nd paycheck to fall back on
So your partner is your emergency fund? THAT is a huge mistake!
Single means higher fixed expenses
That can be true, but partnering often means more space is needed, you buy more food, and you have to buy the other guy’s specialty channels on TV!
The rules of money management are the same whether you’re single or a family. Don’t spend more than you make, save something, prep for emergencies and, if you’ve got debt, get it gone! I’ve been single (this time for almost five years) and I’ve been doubled and the difference has been negligible. I don’t have to cover someone else’s bad money management habits. I don’t have to worry that the bills will be paid on time.I don’t have to deal with expenditures for which I had not planned.
Even when I was having my babies, I was not financially dependent on my husband. Not ever. I had money socked away for my mat leave (no, I didn’t get mat leave benefits cos I’m self-employed), and when it ran out I went back to work. For most of my children’s young lives all my money went to pay for my share of the household expenses and our nanny. I seldom travelled, hardly ever bought clothes and never went out drinking. We did BBQs in the back yard and watched our children grow and learn… that was our entertainment!
Sometimes people like to think money management would be easier with a second income. But as one person accurately pointed out:
2 inc doesn’t mean couple is making 2x amount of money; 1 spouse can make $50K & other $25K while a single makes $75K alone
And so tell me again why single money management is different?