How to Be Single: 5 Financial Tips for Singles

Being single is great sometimes, but it has its challenges. And some of them are financial.

If you believe the internet, many of us wonder how to be single and happy. Though it can be great – you can sleep in the middle of the bed, go to bed when you want, and answer only to yourself - living financially solo can be a challenge. On one income, it can be difficult to afford housing at current prices, for example (one reason why many people are moving back in with their parents).

There’s no reason to sacrifice your financial goals – or put them on hold – just because you’re living single. Check out these five tips for financially healthy and happy single living.

Tip #1:  Making a Budget

Whether you’re single or not, it all comes down to money in, money out. A budget in its simplest form is just keeping track of both. The good news is, tracking expenses is easier when you’re single because there’s just one of you. And if you learn to budget while you’re single, you’ll be set for life – whether someone else comes along or not.

Knowing your income (money coming in) and ALL your expenses (money out) helps you in several ways. First, you can see everything you’re spending your money on. Then you can look at those items and find opportunities to save. Recurring expenses are a great place to start. For example, you might not need both Hulu and Netflix. Or you might have an important savings goal and be willing to give up both. As you review your spending, think hard about the difference between your wants (home décor, manicures, cable) and your real needs (shelter, food, heat).

By subtracting your expenses from your income, you can also see how much you have left over for savings. Then you can make a plan to put that away each month, or even set it up to go into savings automatically. Knowing how much you can save will also help as you set up your $5,000 emergency fund and then begin to make other savings goals, like for a house or a vacation.

Most importantly, you need to know your budget so you can live within your means. In other words, don’t spend more than you make!  If you want something you can’t afford, save for it until you have the money.

These are straightforward tips that apply to everyone. Whether you’re single or not, getting a budget in order and learning to live within it will do more than anything else to set you on the path to a great financial future. If you’re already in a financial struggle, seek out advice from experts like Dave Ramsey or Suze Orman and other credible sources. The 50/30/20 budget rule can also come in handy. The 50 30 20 budget rule is basically a way to help people reach their financial goals.

Most of all, create a budget you can stick to!

Tip #2:  Saving for Retirement

When you’re single, you need to rely on yourself financially (unless you’re lucky enough to have a fairy godmother). But you need to accomplish all the same tasks a couple does to ensure your financial future, and that includes saving for retirement. If anything, retirement savings is more critical for singles because there’s no “safety net” in a spouse’s retirement plan. You’re on your own.

Get started by maximizing any retirement plan benefits you have at work. For example, if your company offers a 401k program, sign up. Some companies will match some of the contributions you make, basically doubling the money you put into the account. Find out. Just getting money flowing to your 401k or other employer-based program is the best place to start. You can always branch out if you find additional money in your budget to set aside. Talking to the company that holds your 401k is a great way to learn more; they can help you make a strategy for your retirement.

What if your employer doesn’t offer this benefit?  You can still set up retirement savings on your own. Companies like Fidelity, USAA, Charles Schwab, TIAA-CREF and many more can help guide you.

The biggest key to retirement savings is to start as early in life as possible. (There’s lots of information online about why, so do your research. Search for “time value of money.”)  Don’t assume you’ll eventually get married and someone else will take care of it. And don’t wait – unless you want to work well past the average retirement age.

Tip #3:  Consider Housing Options and Alternatives

Housing can be a painful topic these days, especially for singles. The cost of rentals is soaring. But the interest rates for a mortgage are high as well.

In fact, this catch-22 is driving many singles back under their parents’ roofs with a reported 25% of millennials now living with their parents. Half of these moved home over the last year since inflation surged.

You might be able to live comfortably as a single, but you might not. In that case, investigate your options. Think creatively. Consider living with a roommate. Buy a house where you can rent half out (or rent part of a friend’s house). Maybe you can live in the area you like best if you’re willing to rent a smaller studio apartment. Perhaps a grandparent could use a little help around the house and would love to have your company. Housesitting or pet-sitting might provide short-term housing. Another single, perhaps an empty-nester, might have a beautiful basement space they no longer need and would rent to you. Perhaps your own parents would love to move in and are willing to provide your child care.

Just be sure to consider all the options and think creatively about your housing needs.

Tip #4:  Prioritize Your Transportation

As a single person, you’ve got to realize the importance of safe, reliable transportation.

How is this related to finances?

First, if you can’t get to work, you can’t hold down a job, and no job means no income. While couples may have two cars and be able to temporarily share transportation, as a single you can’t count on having a backup.

So, it’s important to budget money every month for car care, and to set aside money for emergencies or repairs. Make sure those oil changes happen on time. Do what you can to keep your transportation – and thus your income – reliable!

Tip #5:  Be Good to Yourself – Within Reason

Just because you’re trying to be a responsible single doesn’t mean you can’t do anything fun or meaningful. It just means you need to budget for the fun stuff and stick to that budget.

Include your social activities in your budget. If you like to go out to dinner with friends once a month, that goes into your budget. Movies?  Quarterly soccer league fees?  Supplies for your crafting obsession?  It all goes into your budget.

You can often save money and still do what you love. There are endless opportunities to cut costs, like these:

• Movies:  If going to movies is something you love, try going to matinees or less expensive theaters.
• Drinks with friends:  Invite your friends to your place for a BYOB get-together and game night.
• Dinner with friends:  Organize a round of potluck dinners at friends’ houses (be sure to tell them).
• Clothes shopping:  Try out some nice resale shops. Resell items you no longer want to pay for new things.
• Working out: Use your apartment complex gym or local park equipment if you don’t really need a gym membership. Invite someone to work out with you.
• Crafting:  Ask if friends are willing to loan or swap supplies or check out second-hand and recycling stores near you.

If you love an expensive item and want to splurge, that may be ok. If you have the money saved, your budget allows for it, and you’ve prioritized your bills, debts, and savings, that’s your call.

Being single doesn’t mean you can’t have fun with your money. But single or not, you should always plan for your financial foundation before the fun stuff. Not the other way around.

Be single and financially successful!

Your financial health doesn’t have to depend on your relationship status. We hope these strategies can help you be financially independent and live fabulously single. If you feel like you need some assistance, apply for an installment loan today.

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