Single people face a different set of challenges when it comes to meeting financial goals. They often have higher expenses and less money coming in compared to couples. That can lead to a great deal of frustration when hardworking singles watch their partnered-up friends apparently move more quickly into a state of financial security.
But with those challenges come freedom and opportunity. Singles don't have to check in with anyone when they decide how to spend and save money. They do not have to take on the burden of a partner's debt, or sometimes questionable financial decisions. Plus, more and more singles are finding creative ways to cut costs on housing and to save for retirement.
Be Smart With Savings
Many singles don't have the luxury of putting off savings. An emergency fund is essential, but so is setting aside retirement funds. Even if you are in a relationship one day, financial experts still recommend you assume you will always have complete responsibility for your nest egg. That means putting aside as much as possible, as early as you can. Even a spare few dollars can add up handsomely over time. Best of all, you can choose what expert advice to follow when it comes to investments -- there are no kitchen table debates with a partner.
Start a Side Hustle
Singles often have a bit more free time. Use those extra hours to make a bit more money. That can be through a part-time job or a passion project. As a single person, you can pursue a new venture with less worry about risk or failure. You may be just expending your own sweat equity, while you have the freedom to do what makes you happy. While you're still single you can experiment with other types of work that may turn into a full-time endeavor down the line. The extra cash you make can go into those all-important savings, for that time you need them.
Saving money is one thing -- but what about cutting expenses? Many singles suffer because of high housing costs, making the goal of saving seem remote. But some singles are choosing to make up those costs in unusual ways. They are partnering with other singles to split the rent or even buying homes together. Those who own property are listing their space on home-sharing sites while they take a few weekends away at a friend's. These may sound like extreme remedies, but they represent a new model of paying for housing.
Talk to Others
The downside to being single is you don't have a partner with whom to discuss financial issues. Talk about it with a trusted friend and a financial advisor. They may have ideas of how to create that kind of security you seek -- given your individual circumstances. It may ultimately come down to sage advice of living below your means, which can be tough in a world built on financial advice designed for two. Take confidence in the fact that you can look after yourself -- one sound decision at a time.
One place to start is by looking for the latest quotes on Rates.ca for everything from mortgages and low credit card rates to cheap car insurance. With the right information you can be on the path to full financial empowerment.