Let’s face it – with inflation driving up the cost of everything from groceries to gas, many of us are taking a hard look at our finances these days. And if you’ve ever wondered whether tying the knot might help (or hurt) your wallet, you’re not alone! As someone who’s analyzed the numbers, I can tell you that your relationship status definitely impacts your financial health – but maybe not in the ways you’d expect.
The Financial Reality: Singles vs. Married Couples in 2023
According to the latest data from the US Bureau of Labor Statistics’ Consumer Expenditure Survey, there’s a pretty clear financial difference between living solo and sharing expenses with a spouse.
The hard numbers:
- Single people spend about $48,000 annually, with $17,899 going toward housing
- Married couples spend around $76,000 annually, with $24,811 on housing (that’s just $12,405.50 per person)
- This means married individuals save nearly $5,500 each on housing expenses compared to singles!
But wait – before you rush off to propose to your significant other (or accept that proposal you’ve been pondering), let’s dive deeper into the true costs of living single vs. married.
Why Singles Pay More (It’s Not Just Housing)
When you’re single, you’re shouldering 100% of your living expenses on your own. There’s no splitting the bills, sharing subscriptions, or dividing household tasks. This “singles tax” extends to:
- Housing costs: Whether renting or owning, you’re paying the full amount
- Utilities: The same electric, water, and internet bills that a couple would share
- Groceries: Less bulk buying power and more food waste
- Insurance: No multi-policy discounts or shared health plans
- Emergency expenses: No partner’s income to fall back on
Rachel Bennett a broker with Orchard explains “Single people are generally more likely to cover all bills themselves, and to do so with one income.”
The Rent Reality Check
According to Rent.com, the median monthly rent in the U.S. recently hit $2,002. Using the 30% income rule (the maximum you should spend on housing) a single person would need to earn over $80,000 annually to afford the average rental on their own.
Looking at major cities makes the picture even clearer:
| City | Median Monthly Rent (1-bedroom) |
|---|---|
| New York City | $3,860 |
| Boston | $3,060 |
| Los Angeles | $2,410 |
| Washington, D.C. | $2,310 |
| Chicago | $1,830 |
Yikes! These numbers might make anyone consider a roommate – or a spouse!
But Wait… Is Being Single Really “Financially Bad”?
Not necessarily! Jennifer Beeston, SVP of Mortgage Lending at Guaranteed Rate, puts it bluntly: “The concept that you need to be married to buy a house is outdated and toxic. Single people buy houses every single day with zero trouble.”
In fact, there are some real financial advantages to singlehood:
- Complete financial autonomy: No need to compromise on spending or saving
- No shared debt liability: Your partner’s student loans or credit card debt won’t affect you
- Simpler financial planning: Only your goals and timeline matter
- Freedom to relocate: You can move for better job opportunities without considering a partner’s career
Plus, more Americans are choosing single living than ever before. Census data shows that just 50.4% of adults lived with a spouse in 2021, down from 55.8% in 2001.
Homebuying: Single vs. Married
When it comes to purchasing property, there are pros and cons to both relationship statuses:
For singles:
- Only your credit score and finances matter
- Complete control over decisions and potential future sale
- No risk from a partner’s poor credit history
- Census data shows 57% of single homeowners are women!
For married couples:
- Two incomes often mean greater buying power
- Potential for better mortgage rates with two strong applicants
- Shared maintenance costs and responsibilities
- Tax advantages specific to married homeowners
However, Bennett points out an important caveat: “For married couples where one spouse has low income, high debt or a mark on their credit report, it may be preferred to put just one person’s name on the mortgage.”
Beating the High Cost of Living (Regardless of Relationship Status)
Whether you’re single or married, here are strategies to manage today’s expensive reality:
- Consider shared living: Roommates can help singles split costs
- Relocate strategically: Use cost-of-living calculators to find affordable areas
- Increase income: Side gigs or requesting raises can offset higher expenses
- Downsize: Smaller living spaces mean smaller bills
- Embrace budgeting apps: Track where every dollar goes
- Build an emergency fund: Crucial for financial stability regardless of status
The Verdict: Is it Cheaper to be Married?
If we’re looking strictly at the numbers – yes, sharing a household with a spouse is typically cheaper than living alone. The average married person saves about $5,500 annually just on housing compared to singles.
However! This assumes a healthy financial partnership. A spouse with significant debt, poor money habits, or employment issues can quickly erase those savings and potentially create financial strain.
Real Talk: Money Isn’t Everything
While this article focuses on finances, I’d be remiss not to mention that choosing whether to marry should never be primarily about money. There are emotional, social, and personal factors that far outweigh the potential savings from a shared Netflix account or split rent payment!
As someone who’s looked at these numbers extensively, I believe financial compatibility matters more than relationship status. Whether you’re happily single or blissfully coupled up, understanding your personal financial situation and making intentional decisions will serve you better than any relationship status.
Financial Benefits by Status: A Quick Comparison
Marriage Financial Perks:
- Shared housing and utility costs
- Potential tax advantages
- Spousal Social Security benefits
- Often shared health insurance
- Two incomes for emergencies
Single Financial Perks:
- Complete financial independence
- No liability for partner’s debts or poor credit
- Full control over spending and saving
- Flexibility for career moves and relocation
- No financial entanglements if relationships end
FAQ: Common Questions About Money & Relationship Status
Can lenders discriminate against me for being single?
No! This is prohibited by both the Equal Credit Opportunity Act and the Fair Housing Act. Lenders cannot discriminate based on marital status or family status.
What is the 30% housing rule?
Financial experts recommend spending no more than 30% of your income on housing expenses. Similarly, the 28/36 rule suggests limiting housing costs to 28% of income and total debt to 36%.
Are there tax benefits to being married?
Yes, married couples often benefit from lower tax rates when filing jointly, higher deduction limits, and estate tax advantages. However, some couples experience a “marriage penalty” depending on their income levels.
Can singles build wealth as effectively as married couples?
Absolutely! While married couples may save on some expenses, singles have more flexibility with investment choices and career moves that can accelerate wealth-building. Planning and discipline matter more than relationship status.
The bottom line? Both singlehood and marriage have financial pros and cons. The most important thing is making informed decisions based on your unique situation, not societal expectations about what your relationship status “should” be. After all, financial happiness comes from alignment with your values, not your marital status!
