More people in America are staying single today than ever before. In fact, over half of all adults in the U.S. are single now, which is a big change from 1950 when the number was just 22%.
While being single has its perks, it also comes with its own set of financial hurdles. Here's a look at the pros and cons, and some advice on handling money when you're going it alone.
Advantages of Being Single and Managing Money
When you're single, you're the captain of your financial ship. You don't have to deal with disagreements over how money is spent or saved, which are common in relationships.
You make your own financial plans and can change them whenever you want, without having to consult with anyone else.
Challenges Single People Face with Money
Single folks can run into certain roadblocks that can make saving for the future tricky.
Let's discuss a few of these and what you can do about them.
Housing Costs
For single people, affording a place to live on just one income can be tough. Experts suggest not spending more than 28% of your pre-tax monthly income on housing. So, if you earn $6,000 a month, try to keep your housing costs below $1,680.
To make that happen, you might need to get creative like finding roommates, moving to a cheaper area, or increasing your income through a raise or a second job.
Job Loss
Having a backup fund is essential, especially if you're out of a job for a while. Aim to have enough saved to cover half a year's worth of your expenses.
So if your monthly costs are $4,000, it's smart to have $24,000 saved up and easily accessible.
Check Out: Breaking the Cycle of Paycheck-to-Paycheck Living: Tips on Budgeting, Emergency Funds, and Boosting Your Income
Healthcare
Medical care in the U.S. is expensive, and single people need to be prepared. Health insurance is crucial, and so is having coverage in case you can't work due to a disability or need long-term care.
Also, if you have a high-deductible plan, consider putting money into a Health Savings Account, which gives you tax benefits and can help you handle unexpected medical bills.
It's also wise to appoint a trusted person who can handle your finances or medical decisions if you're unable to.
Bottom Line
Being single gives you a lot of freedom to direct your financial future as you see fit. However, it's important to be prepared for certain financial pressures like housing, job security, and healthcare.
Budget smartly, save for emergencies, and protect yourself with the right insurance, and you'll be on your way to financial stability.
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