When it comes to your finances, is it better to be single or in a relationship? This post will present the most important financial considerations of being single versus in a relationship so you can decide which is best for you.
Having spent 15 years in a long-term relationship and 5 years single, I have a wealth of experience in both situations that enables me to offer a well-rounded perspective on the financial implications of each lifestyle.
Money is a small, yet important component of the bigger picture. Therefore, considering whether it is better to be single or in relationships from a financial perspective can help you make an informed choice.
We’ll start with a discussion of why being single is better for your money. Then, we will follow with a look at the financial upsides of being in relationships. I’ll then conclude the post with my verdict on whether it is better to be single or in a relationship.
5 Ways Being Single Is Better For Your Money
The best word that represents being single is freedom. In particular, single people are only responsible for themselves. This could be better for you or worse depending on your personality and goals.
Here are the top reasons being single is better for your money:
Being Single Is Better For Avoiding Money Fights
If you’re asking yourself whether it is better for you to be single or in a relationship, consider that one of the things that makes being single better is it means no money fights.
This is a big deal considering 50% of divorcing couples agree that financial problems are the cause of their split. Additionally, 53% of divorcing couples agree that conflict and arguing was the primary issue.
It isn’t hard to imagine that financial problems in relationships would lead to conflict and arguing. Meanwhile, those who are single avoid this altogether since they only have to deal with themselves.
I can recall a money issue in one of my shorter relationships where my girlfriend seemed unwilling to contribute to things we did jointly. She used her money solely for herself, yet she expected me to use my money for both of us. While I value generosity and sharing, this situation made me feel taken advantage of. Needless to say, it didn’t last very long.
Being Single Is Better For Simple Finances
As a single guy, it’s hard enough to manage money on my own. It’s so difficult that I’m actively working to simplify my finances to make things easier.
Things I’m focused on are establishing a budget, cutting down credit card use in lieu of more cash, consolidating payment accounts, plugging spending leaks, and organizing my documentation.
Thankfully, I only have to do this for my own finances. However, being in a relationship would require doing it for 2 people, which would undoubtedly be more complex.
Being in a relationship with the right partner would certainly make managing household finances easier. But it will always be simpler to manage your finances as a single person than it would be if you were in a relationship.
Being Single Is Better For Financial Autonomy
Financial autonomy is the ability to manage your financial resources independently. Being single maximizes your financial autonomy since you don’t have to align with a partner.
In 2018, my ex-girlfriend and I debated whether we should rent a 2br bungalow in a quiet neighborhood for $900/month or a trendy 1br downtown apartment for $1400. I probably knew in my subconscious that I was on the financial edge, close to going broke, and thus wanted the cheaper bungalow.
Of course, she wanted the trendy and more expensive place downtown.
The resolution? I decided to keep the peace by begrudgingly agreeing to split rent 50/50 on the more expensive place. Less than six months later, my finances came tumbling down as I was steamrolled under my mountain of debt.
I tell this story to show that it could be better to be single than being in a relationship since being single eliminates the need for compromise. I was focused on financial stability while my ex was focused on lifestyle and fun. Hence, it can be difficult to balance priorities in relationships.
Being Single Is Better For Having Less Risk
Being single is better from a risk perspective because it gives you complete autonomy over your finances. For instance, a single person doesn’t have to worry about a partner gambling away the family savings or a partner indiscriminately taking on debt.
Being single also means you can have a smaller home and own fewer things which is inherently less risky than a larger home full of many things.
In addition to that, being single means you will have fewer dependents. Thus, you will have lower healthcare requirements and lower insurance needs. You also won’t have the risk of divorce which is always a potential downside of being married.
Being Single Is Better Because You Won't Need As Much Money
It could be better for you to be single if you like the idea of living life without the need to make a lot of money. Or, perhaps you are financially limited for reasons beyond your control.
A single person could feasibly get a studio apartment, an inexpensive car, plus a few other essentials and live comfortably in almost any city. Meanwhile, being in a relationship would likely require a large space, greater transportation requirements, more money spent on food, and increased costs for relationship related activities such as going on dates.
It’s been a lot easier for me to save 50% or more of my income over the last few years as a single person than it would have ever been in a relationship. Even when considering a partner could bring more income to the table, it would come with less autonomy and higher expenses for dates, trips, and other nuances brought on by the relationship.
5 Ways Being In A Relationship Is Better For Your Money
Let’s advance the discussion of whether it is better to be single or in a relationship with examination of the financial benefits of being in relationships.
As you’ll see, relationships and marriage have a lot of upside that should make them attractive choices.
Relationships Offer Better Retirement & Tax Benefits
In certain instances, being married can offer advantageous retirement and tax benefits.
For instance, a married couple earning $75,000 in 2024 can reduce their taxable income to $47,000 by taking the $28,000 standard deduction for a married couple filing jointly. Meanwhile, a single person earning $75,000 could only deduct $14,000, thus lowering their taxable burden to $61,000.
All else being equal, the single person in the above scenario would be on the hook for $8,728 while the married couple only pays $5,200 for a total savings of $3,528.
Additionally, being married offers many retirement advantages such as combined contribution limits to 401ks and IRAs. Married couples also have the benefit of being able to contribute to a Spousal IRAs for a non-working spouse.
Marriage Could Be Better Since Married Couples Earn More
By all accounts, married couples out-earn their non-married counterparts by a wide margin.
Just how big is the gap? Well, up until 2016 married households had about three times the wealth of non-married couples. Today, that number is reported to be even higher.
Additionally, statistics are showing that married men earn 11 percent more per hour than non-married men of the same age, having the same level of education, and similar years of experience.
There are many reasons for this including inherent qualities of the types people who become married, possible employer discrimination in favor of married people, and the obvious pooling of resources that helps to accelerate wealth creation.
Relationships Are Better For Synergistic Money Management
Perhaps another reason being in a relationship is better for your finances is that you can possibly benefit from a synergistic effect of having a partner. That is, finding a partner with the right skills and abilities can enable you to combine and leverage your individual talents for the betterment of the household finances.
For example, a partner who is skilled with making money, but not very organized could partner with someone who has strong organizational skills. Combining both skillsets can produce a powerful synergistic effect of strong earnings on one side; paired with high levels of organization on the other.
Of course, you have to actually find someone whose traits are complementary to yours. But once you do, the sky is the limit on what can be achieved as a cohesive team.
Being In A Relationship Is Better For Financial Motivation
If you like a bit of pressure to keep yourself motivated, being in a relationship could be the perfect thing for you.
Being in a relationship makes you accountable and responsible for your partner, children, and larger family unit. Thus, you will need to step your game up to ensure you deliver.
This is probably the main thing driving married men to earn more. It makes sense for them to be motivated to take care of their spouses and families. Meanwhile, single men don’t need to step up as as much because they only have to look after themselves.
Anytime I’ve been in a relationship, I’ve felt the need to do better with my finances. I wanted to garner the respect of my partners and knew that being a scoundrel with money would ruin it. Hence, I can confirm that being in relationships is a strong source of financial motivation.
Relationships Create Financial Safety Nets
A friend of mine quit his job in November 2023 because of a toxic work situation. He didn’t have another job lined up, but hoped to find something within a few months. In the end, it took him over eight months which was a lot longer than he expected.
Fortunately for my pal, his wife is a high school Assistant Principal. Because of this, they were able to stay afloat on her income while he held out for the right job. He ended up finding that job recently and is now in a great situation.
Without his wife’s income, my pal would have been forced to settle for less than ideal jobs. He interviewed for many roles during that eight months, and even rejected a few high paying offers.
His wife’s safety net was there to help him in a time of need.
In this way, relationships are a lot better than being single considering people in relationships have someone there to help them when they fall.
My Verdict: It Is Better To Be Single Or In A Relationship?
So, what’s my verdict on whether it is better for your money to be single or in a relationship? My vote goes to relationships.
I say this primarily because I believe money is just a small part of life. Once you are debt free and earning enough to live well – our valuable time is better spent focusing on things money can’t buy such as fulfillment, purpose, good health, community, relationships, and of course – love.
Granted, we should certainly ensure we settle with the right partners. Finding someone with a compatible personality, shared values, and adequate chemistry could take some time.
Thankfully, we can still enjoy the financial benefits of being single until we find that special someone else.