People who are married do much better financially than single, divorced or cohabiting couples. The principle difference?
Married people are both in and if they are wise will compare notes and help each other NOT spend foolishly and save a bit here and there and if they do so, over time, it adds up. A bunch. A lot. A ton. (Obviously there are foolish married people when it comes to money. But that doesn’t mean they can’t stop being foolish and turn the corner and start being wise.)
Single people have no one to save for so they tend to just spend everything. A wise single person has an accountability partner to talk to about money issues so the single person doesn’t just go spend money on a whim. Married people have each other to talk to (HOPEFULLY! If you don’t come see us!). It’s difficult for single people because they don’t have a built in accountability person to talk to about money.
Divorce is the number one cause of poverty in our country so that’s a bust financially, more than most people who fantasize about divorce realize. It’s not just cutting your income in half or whatever your spouse made or dividing up the retirement. It’s taking an atom bomb and blowing the whole thing up. Most divorcees end up in ungodly amounts of debt that can take years (decades?) to dig out of.
Cohabiting couples nearly all (I haven’t seen an exception. It’s a question I ask if the couple doesn’t say) keep their money separate so they live financially as single roommates (one of the key reasons cohabiting sucks to high heaven. The next biggest reason is they are setting their patterns for life when they cohabit and when they marry most will still keep their money separate, living as single people even though they are called “married” now. This is a sad, sad, deal.).
I came across the article below about compound interest this morning and thought I’d share it with you. Take a look, be encouraged, and have a chat with your spouse how you can spur each other on to kick that debt out the window and start building your savings. ASAP!!
Here’s the article: Investing: Money Plus (Lots of) Time Equals Excitement
