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Habits of Financially Successful Singles - May 2016
Some of us enjoy being single and some of us don’t. But there’s no arguing with the fact that being single can be more financially challenging. An additional income is a great advantage, and two people have relatively similar living expenses as a single person. Being single means having to pay for everything yourself.
When I was single I earned an excellent (for the times) salary and I lived like I did too. I didn't have any debt, but I only had minimum savings and I'm a little ashamed to say that saving for the future wasn't a top priority. I did save up for things I wanted - holidays, my car, new furniture. But I didn't especially save for my retirement and I didn't have an emergency fund. Compulsory superannuation didn't happen until a year before I stopped working to raise our children.
As a single I lived well but I had no financial buffer.
If you’re living life as a single, regardless of your age, consider adopting these financial habits:
Limit the size of your home to match your budget. Only requiring a one-bedroom apartment to satisfy your living space needs is one advantage of being single. It can be tempting to try to compete with your married friends. After all, many of them are likely to have nice homes. Resist this urge and limit your housing to what you really need.
Most people spend 90% of their time at home in the bedroom, kitchen and living room anyway. You can do all of that in a small home or apartment and save your money for more important things.
Successful singles take advantage of being the sole decision maker. Being single means having the freedom to make decisions without having to accommodate the desires of others. It also means there isn’t anyone there to keep you honest. Take the time to make good financial decisions. Take advantage of the fact that you’re in control, being married means having to consider the needs and desires of another adult. There is always compromise.
Travel with a friend. If you don’t have a significant other, travelling can be much more expensive. This is mostly due to paying for accommodations by yourself. In general, a hotel room for two costs the same as a room for a single. Consider going on holiday with a friend or review holidays designed for singles.
There are also many options today to minimise lodging costs. Do a search online and you’ll be surprised at the many ways to reduce these costs.
Pay yourself first. This is an excellent habit for anyone, but it’s especially important for singles. The need for an emergency fund is greater for singles - you’re the only person paying into it. If a real financial challenge appears, you’re the only one available to handle it. Pay yourself first so you’re ready for anything. Aim to add 10 per cent of your income to a savings account each pay.
Take care of business at work. With a single income, the loss of a job can be especially challenging. If things aren’t going well at work, either fix them or start looking for new employment. Many of us do just the minimum at work to avoid being fired. If possible, consider nurturing a part-time second income that accommodates your lifestyle.
Start saving for retirement immediately. I can't stress this enough. If you stay single, you’ll be your only source of retirement savings and investment. You might not plan on staying single, but it’s better to be safe than sorry. Besides, saving for retirement is an excellent habit for anyone.
While being single has its challenges, it also has many benefits. You alone control your finances and can make all the decisions so the responsibility is on you to make smart choices.
It’s all about saving, protecting your income, and being prepared for the future.
Begin adopting the habits of financially successful singles today (and these habits will work for you if you're married or have a partner - they're not really just for singles!).
When I was single I earned an excellent (for the times) salary and I lived like I did too. I didn't have any debt, but I only had minimum savings and I'm a little ashamed to say that saving for the future wasn't a top priority. I did save up for things I wanted - holidays, my car, new furniture. But I didn't especially save for my retirement and I didn't have an emergency fund. Compulsory superannuation didn't happen until a year before I stopped working to raise our children.
As a single I lived well but I had no financial buffer.
If you’re living life as a single, regardless of your age, consider adopting these financial habits:
Limit the size of your home to match your budget. Only requiring a one-bedroom apartment to satisfy your living space needs is one advantage of being single. It can be tempting to try to compete with your married friends. After all, many of them are likely to have nice homes. Resist this urge and limit your housing to what you really need.
Most people spend 90% of their time at home in the bedroom, kitchen and living room anyway. You can do all of that in a small home or apartment and save your money for more important things.
Successful singles take advantage of being the sole decision maker. Being single means having the freedom to make decisions without having to accommodate the desires of others. It also means there isn’t anyone there to keep you honest. Take the time to make good financial decisions. Take advantage of the fact that you’re in control, being married means having to consider the needs and desires of another adult. There is always compromise.
Travel with a friend. If you don’t have a significant other, travelling can be much more expensive. This is mostly due to paying for accommodations by yourself. In general, a hotel room for two costs the same as a room for a single. Consider going on holiday with a friend or review holidays designed for singles.
There are also many options today to minimise lodging costs. Do a search online and you’ll be surprised at the many ways to reduce these costs.
Pay yourself first. This is an excellent habit for anyone, but it’s especially important for singles. The need for an emergency fund is greater for singles - you’re the only person paying into it. If a real financial challenge appears, you’re the only one available to handle it. Pay yourself first so you’re ready for anything. Aim to add 10 per cent of your income to a savings account each pay.
Take care of business at work. With a single income, the loss of a job can be especially challenging. If things aren’t going well at work, either fix them or start looking for new employment. Many of us do just the minimum at work to avoid being fired. If possible, consider nurturing a part-time second income that accommodates your lifestyle.
Start saving for retirement immediately. I can't stress this enough. If you stay single, you’ll be your only source of retirement savings and investment. You might not plan on staying single, but it’s better to be safe than sorry. Besides, saving for retirement is an excellent habit for anyone.
While being single has its challenges, it also has many benefits. You alone control your finances and can make all the decisions so the responsibility is on you to make smart choices.
It’s all about saving, protecting your income, and being prepared for the future.
Begin adopting the habits of financially successful singles today (and these habits will work for you if you're married or have a partner - they're not really just for singles!).