Many people think that getting married is a financially unwise thing to do. People commonly claim that married folks pay more in taxes than those that are single. This is untrue in most cases. In fact, marriage offers a lot of financial advantages.
Here are some of the many financial windfalls of being married:
1. Health insurance is usually cheaper. Adding a spouse to a policy is usually less than having two separate policies. Since prices vary so much from employer to employer, one of the spouse’s plans is frequently quite a bit less expensive than the other.
2. Better loans go to married folks. If both partner’s work, then the bank has two incomes to consider when making loan decisions. You have access to larger loans and qualify for loans more easily and at better interest rates.
3. Your credit improves from a practical standpoint (maybe). The partner with the worse credit will see a boost in their borrowing power. Of course, the opposite is true for the partner with the better credit. But together, you’ll end up better from a credit standpoint as you increase the score of the spouse with weaker credit.
4. Auto insurance costs will decrease. Married people are considered to be less of a driving risk. The decrease in premiums can be as much as 28%, depending on where you live. On top of those savings, you’ll also have multi-car discounts and the opportunity to bundle that with your homeowner’s insurance for greater savings.
5. Greater financial security for both parties. If you’re on your own and lose your job, you typically don’t have access to another source of income. While a spouse losing a job is financially challenging, two people can live on one income better than one person can live on no income.
6. You can have a better lifestyle. With all the savings you realize, you are free to spend money on other things. For the more frugal, there is a greater opportunity to save money. Consider the following if you both work:
- Your share of the utility bills is now half of what it was when you were single. The overall cable, the Internet, trash, heating, cooling, and electricity bill are essentially the same regardless of whether one or two people live in the home. The same goes for any home maintenance.
- Ditto on the landscaping and lawn care. If you pay someone to get the snow out of the driveway, you still only have 1 driveway, but now you have two people paying for it.
- Two people in a hotel room cost the same as one. The same goes for a rental car.
- You might be able to share one personal vehicle and save a lot of money.
- With those savings, you could get a bigger house or better cars and spend more on vacations and other amenities. You could also sock away more money for the future. Having more disposable income means having more possibilities available to you at any moment.
Don’t believe it when someone tells you that being married has too many financial obstacles! Tying the knot actually has a significant financial upside. You’ll be able to realize a lot of savings in multiple areas. Those savings can then be applied to either retirement or an upgrade in lifestyle.
There are many advantages to having two incomes. Imagine the possibilities!