Aside from the benefits of enjoying a legal and civil union with your spouse for the rest of your life and enjoying your “happily ever after,” marriage comes with a few financial boons too!
And really, in today’s economy, who’s not looking to save some money? While the wedding itself can potentially be a bit pricey, tying the knot can cut costs in a number of interesting ways.
Today, we’re going to be taking a look at some of those financial perks!
Being Married Means Less Taxes
According to Forbes, married couples tend to be more fiscally responsible. They also pay less of their income in rent – and they don’t owe the state and Fed as much come tax time.
According to the monthly expenses and costs of three separate New York City households – one household married with children, the other married without children and the final single – the married couple paid about 29 percent of their combined salaries in taxes, whereas the single person paid 35 percent of their salary.
Now, sure – 29 percent of two people’s salary is still more than 35 percent of one person’s salary when we’re talking sheer numbers here, but it’s not necessarily those numbers that matter – it’s the percentage ratio.
The single household was earning $90,000 a year. The childless couple, a whopping $170,000 – nearly double.
And far beyond both was the family of five with an annual income of $500,000. That’s the math that matters – married couples pay less of their income in taxes than their single counterparts.
Unemployed Spouses Can Still Save for Retirement
While unemployed singles cannot shift or funnel their unemployment benefits into an IRA (Individual Retirement Arrangement), an unemployed spouse can still funnel their part of the marriage’s joint income into their IRA.
IRAs are an investment tool through which an individual can strategically fund their future retirement by earmarking transactions and slowly funneling wealth into the account. Wealthier couples and singles have no need for an IRA and its benefits because they’re already wealthy and in possession of plenty of wealth and equity – but since married couples typically have to earn much more than singles to break even, their income margins for an IRA are higher.
Car Insurance Will Typically Cost Less
Although every insurance company has its own set of metrics and standards for calculating insurance buyer risk and deciding what the price of monthly premiums should be in order to cover costs, remain profitable and still be competitive, CNBC reported as a general rule, married individuals pay less in car insurance than single or unmarried people do.
Age is a big factor when calculating the cost of car insurance and insurance in general. Insurance companies typically price their offerings as per risk.
Younger individuals are much more prone to taking risks due to higher alcohol intake, peer pressure and inexperience. However, despite that, CNBC states married couples between the ages of 20 and 25 still pay less in car insurance than singles hitting 30.
It’s a good idea to compare auto insurances online from sites like CoverHound, in order to figure out what the best and most fiscally responsible choice is for you and your spouse.
Chances are you two can update your existing car insurance policy with your new marital status, and get a reduction in your current monthly premiums.
Who knew being married could save you money?