Singles have their own financial issues, which need to be highlighted and solved. There are some steps that you could do to overcome them. Illness, holiday surcharges, excessive tax burdens and soaring property costs can also affect singles.
- Rent or buy: Singles also need a place to stay. Obviously, they don’t need a big house and a small apartment with one bedroom is enough for them. However, soaring property prices could still affect them. In many cases, it is acceptable for them to rent, instead of buying a new property. Many dual-income families have more flexibility in choosing the most appropriate housing, but singles may have fewer options, which is balanced with their lower requirements. When renting a house, singles can share it with one or two friends to reduce financial obligations. By sharing a rent, singles can save money for bigger deposits if they apply for a future mortgage. This will reduce their monthly payments to a much more manageable level. Sharing a rent for 3 or 4 years can make a huge difference in your purchasing power when you finally decide to buy your own house.
- Taxes: Different countries have different taxation rules, so you need to consider how much that you should spend as a single. Unfortunately, in many countries, singles are required to pay full tax bills, although they are the sole occupant or asset owner. Singles should find out whether there are tax incentives for unmarried people, when they have specific ownership. Without enough research, single, unmarried people could deal with the full burden of taxation, regardless of their marital status.
- Vacation: Due to their single marital status, people often travel more, because they want to see the world, while they still don’t have significant financial obligation. Singles can maximize values and profits, by making the right decision. One solution is to ask friends to join you on vacation trips. By travelling in a group, you can avoid a surcharge. Make sure that you are accompanied by a good friend, so your vacation trip will be exciting.
- Health plans: People will eventually get sick and in some cases, things can get serious. Some illnesses can require more treatment than others and you need to spend a few days or more in the hospital. There should be something that you need to rely upon when you plan to pay the bills. Also, when you are sick, you won’t be able to work, while being saddled with big financial commitment. By having a proper health plan, you should be able to counter financial obligations. If medical costs in your country are quite high, it is a good idea to take out an additional insurance policy to deal with the illness. As a safety net, you should save about 3 months of salary to deal with health emergencies, especially because you are not able to work. There are significant money issues that you will encounter if you don’t have the financial buffer. Make sure that you can cover financial expenses and deal with medical costs.