Marriage Can Be Financially Beneficial
Marriage provides many financial benefits for people to wed.
Although, money shouldn’t be the only reason for people to marry, couples are able to afford more expenses with two incomes rather than just one.
This creates a combined capacity for creditworthiness, budget stability, greater acquisition power, and better retirement options to name a few.
However, it’s important to calculate all assets as well as all liabilities to be better prepared for the future economic fitness of this lifetime partnership.
These should be known before they affect the relationship. In a court of law, wives and husbands are both usually liable for any bills that go unpaid. On the other hand, if a spouse has an excellent credit rating, the other one would benefit by uniting accounts. It is easier to achieve economic stability by better managing debts with the extra money provided by two incomes. The combined liability and income is better handled with a created monthly combined budget before the wedding vows take place.
Extra household income
Provides a safety net for times of financial emergency. For example, if a spouse looses a job, the second earner could keep covering the expenses until the other one gets back on track. Also, married couples learn to manage their money better by avoiding the usual unnecessary expenses that singles incur in: luxury items, the latest gadgets and pricier clothing. Saving for future items like a new vehicle or home takes priority and provides stability in a couple.
Spouses normally live in the same neighborhood longer and change jobs less often. Lenders approve of couples with job longevity, residential stability, and combined income. For instance, combined earnings are able to purchase a more expensive home than what a single person would be able to afford since lenders do consider the total household income. With the double income, saved money would be available for vacations, education, buy goods, and pay for unexpected bills.
Finally, marriage can be financially beneficial because couples are able to retire in greater comfort than singles with their shared savings. Marriages that save and plan with various plans like 401ks and IRAs (Individual Retirement Accounts) can have a much fuller life after retirement. Social security along with retirement benefits can even be transferred if a spouse dies. As couples prepare to say, “I do” at the altar, knowing the economic advantages of marriage and its impact is priceless.
This article is provided courtesy of Credit Season, a consumer finance website providing information and tools on bad credit loans and other personal credit services.
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