Many of us can learn to improve our financial situation though managing our savings plans better or even reeling in our spending habits. Managing your finances is an important skill that you can learn. It’s no secret that singles spend their money and finances differently than couples do, and we all know that being single and living on your own can be a lot more expensive than living with a partner. In singlehood you do not have DINKS, a label used to describe young power couples who have Dual Income and No Kids, so we have to make the most of our time to generate income and save every penny. These guidelines can help you arrange your finances into a better situation when it is just you out in the world. The following guidelines can be your rescue boat.
5 Ways Singles Can Better Manage Their Money And Finances
Track All Your Expenses And Make A Budget
Allow yourself to spend as you usually do for 30 days. At the end of this cycle, take out your bank statement and calculate what you spent on food, clothes, gas, entertainment, and other items. Knowing where you spend your money will help you get back control of saving it and investing it wisely, leading to an improvement of your financial situation. Track your expenses and make a budget. Knowledge of your accounts is power. Analyze what you can cut out, and make your checking account as tidy as possible.
Cancel Any Subscription Services
We all have a subscription, spending habit, or extra service we pay monthly for. Cutting out useless expenses will help put extra money in our pockets. It could be television, the internet, or even the habit of shopping online. By cutting the cord, we allow ourselves to save more money and become more of a minimalist, which can help us achieve more clarity. If you have debt, use that extra money to pay off your debt immediately.
Save All Extra Money
Any extra money you save will go into an emergency fund. Don’t be discouraged if it is only a little at a time, any progress you make towards saving your money is a step forward. Keep going and don’t give up. Having extra money in your account will give you a good sense of inner peace.To automate your process, you can set up auto savings transfers in your bank, allocate your income to divert some of your income to a separate account, and even sign up for an account like Acorns which pulls extra money from each purchase and puts it into an investment account.
Generate More Money
In addition to saving money, generating money will help you. Take on projects that you can earn extra money at. For example, you can pick up a 2nd job on the weekend and start a freelancing business. You can start to serve and work to build your side income. Work had to make your additional sources of income really work. If you do start a side hustle, work as if it is your full-time gig. It will take off when you put in the hours and stay dedicated.
Squeeze Money Out Of Your Food And Energy Bills
Meal prepping and signing up for energy savings programs and reducing your energy usage will really help you save money on the already necessary expenses. Carry your prepared meal with you for lunch, and add some snacks to keep yourself satisfied when a hunger strike breaks out in your stomach. You will save more money and will not have any impulse purchases affecting your checking account.
Being single can definitely affect how you spend your money, and with the right attitude and focus, you can improve your financial situation. Learning to manage your money is a teachable skill, and many are very successful at it, you can be too. Take the steps today to become even better at managing your money. You’ve to go the power!
Cheers,
Danielle
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
The holiday season is the time of year where you may travel to see family or visit a significant other’s family. The bottom line is that the holidays bring on additional expenses when you are in a relationship. Here are five ways being single during the holiday season saves you money.
Money
It is no surprise that the holidays push for people to buy their friends, family, and significant others gifts. Seasonal holiday jobs appear during this season so that people can make an additional income to spend on gifts during the holidays. This holiday season save money instead of spending it on a significant other.
Travel
Travel is another major expense during the holiday seasons. Depending on your work schedule and your relationship with your family, you may not be able to or want to go back home for the holidays. While your family may be understanding, a significant other would put more pressure on you to visit their family during the holidays so that you can meet their family. The cost of going home during the holidays or visiting a significant other’s family include transportation to and from airports food and drink at the airport terminal, and flight tickets. There should be no pressure to travel during the hectic holiday season and being single gives you the opportunity to make your own decisions about where you want to spend your holidays.
Dining Out
Relationships are expensive, especially dating relationships, because you have to pay for another person when you dine out. It is no longer a meal and a drink. It is now two meals and two drinks. Food and drink quickly add up when going out. But if you went home with your significant other for the holidays, they want to take you to their favorite places in their city. This means that you will need to include additional money in your holiday budget to dine out with your significant other. However, by being single during the holidays, you only have to pay for yourself when you go out. If you want to save money, you can cut back on going out and put it towards gifts or put the money that would originally go towards dining out into your savings account.
Gifts
Gifts can be expensive depending on what type of gifts you like to give people. If you have a significant other who you want to impress at Christmas, you may buy them some nice jewelry or bottle of their favorite spirit. While some families want to cut back costs of gifts by doing a white elephant gift exchange, you may not be so lucky with your significant other’s family. Being single means that you can save money again by having to get gifts for your one family instead of for a significant other and their family too.
Holiday Parties
Holiday parties start around Halloween and peak during New Year’s, but won’t end until after Valentine’s Day. That means you may be go to parties with friends or a significant other at least once for each holiday. Depending on the type of party and where it is located, parties may require purchasing tickets in advance and events for holiday parties can get expensive. Instead of being pressured to go to holiday parties and spend money that you really don’t want to because of a significant other, embrace being single this holiday season and go to holiday parties that you want to or save money by not going to any parties.
These are the five most common ways that you will spend money during the holidays. If you are single and are not obligated to visit a significant other’s family this holiday season, be thankful because not being in a relationship is saving you money. Is being single during the holidays starting to look better now? Happy holidays and enjoy being single this holiday season!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
When it comes to being single, you’re either living alone, or with a pack of amazing roommates (your parent’s don’t count). Adulting is hard, but we don’t judge. So at the grocery store, what are singles actually buying, and how do their purchasing habits differ from their married counterparts? Let’s explore.
Shopping for an Army of One, or Some…
According to Business Insider, the number of millennials with roommates has surged in recent years. More young adults have roommates, than in previous years. For this, you are either buying in bulk (which is really smart), or you are dividing up the grocery bill with your roommate(s). Singles have gotten smart when it comes to their grocery bill, and many are beginning to meal prep. With roommates, or solo, meal prepping can actually be very effective when you are working towards saving extra money at the end of the month, and you also have more time to control what you eat. Meal prepping is associated with making healthier meals, and avoiding potentially dangerous foods found in drive-throughs.
What’s in the Cart Matters
You’ve just got paid, and your fridge is empty, again. It’s time to head to the grocery store. What do you put on your list? It depends, though what you buy will differ from the traditional ‘married with children’ shopper. Things you don’t need to worry about spending money on generally fall into the family items category. Diapers, children snacks, and chow for your significant other, adds up pretty quickly. When you’ve got your list of items budgeted out and on a piece of paper, you’ll easily notice a smaller chunk of change going towards your food, rather than the opposite. Go ahead and add that extra cash to your emergency fund.
Alcohol
This may not always be at the store, but when singles buy alcohols it is generally for the purpose of socializing. It’s no secret that singles have more of a social life than those who are married off with children. Singles are more self-sufficient and fulfilled. It would only make sense, then, that singles would invest in alcohol, a nice touch to any house party. Elite Daily found that single people drink nearly three times as much as couples do, and spend about $60 on average a week in comparison to their married counterparts of $22 a week.
Other than the basic housing expenses, singles generally allocate their money differently when it comes to spending. Let us know how you spend your hard earned cash in the comments below. Stay secure and live the best life ever in your singles journey.
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
Education is important. The school season is preparing to start up again. Students are buying their textbooks, computers, and new notebooks for their classes. School, from high school to graduate school, has different groups. There are different groups at school and there is a pressure to date in school instead of focusing on education. School should be the priority for students at all education levels and the best choice is to remain single while in school.
Junior high and high school are when hormones start and the pressure to date begins. While all the popular kids are doing it, that doesn’t mean you should. It could affect your high school education and where you ultimately get accepted to for college. Those hours spent with a significant other are better spent studying and reading your class books instead of dating like jocks and cheerleaders. There is also the problem that if you date and have sex with someone in high school that you may end up staying in your town or city by marrying them or having a kid because you hooked up with the person you had a crush on. This will damage your income mobility and the opportunities to move to another city for college or a job. The wisest decision you can make in high school is to stay single and not to date or hook up with your crush.
College, depending on the school you attend, is a more heavily academic version of high school. There are still the cool kids, the partiers, and the nerds. There is still the emphasis within the student body that you should date and get with whoever the hot person of your class may be. It is best to avoid the drama at college and focus on your education. Depending on what your graduating degree is from college, you can land a nice job and work your way up to a plush position. The cost of living is continuing to rise in major cities making it even more important that you finish college and get a job at a good company. Your friends and classmates will wonder why you are not dating anyone, but keep your eyes on the larger goal of starting to have a financially stable future after college instead of getting distracted by relationships. Being single in college is also a great way to learn more about yourself, grow as an individual, and enjoy the freedom to explore your college town after you finish your studies. College is an important stage of life and has become an important factor in your financial future today. Stay single, enjoy the freedom and autonomy of the single life, and do well at college instead of getting distracted by relationships.
If you attending graduate school; a small number of your classmates will probably be married, but singles will most likely be the majority. This is because while going to graduate school and getting an advanced degree will further assist in your financial future, students are still paying off student loans. Debt is a financial problem. It affects your financial mobility debts must be paid before money goes into savings and other investments. The advanced degree will help to set you apart in interviews and help to raise your starting pay for the field that you are going into as a professional. Graduate school is primarily focused on the academics and there is less of the drama and pressure to date, but there will be classmates who are married or dating who may indirectly put pressure on you to get into a relationship. Keep your eyes on the goal, which is finishing graduate school with the best GPA that you can and getting to know your professors in order to land the best job quickly after graduation. The single life is the best way to achieve your dreams and to become successful while in school and after school.
School is a time to learn more about who you are as a person, discover your passions are, and to prepare for the next stage of life after school. Staying single in school is the best decision. Stay focused on your studies, whether you are in high school or getting your postgraduate degree. Being single is about enjoying the independence that the single life offers and that freedom will grow after finishing school.
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
More men are making their ways to the grocery stores to buy food to cook for themselves. Grocery shopping is an important life skills. Marriage is being delayed or put off completely resulting in more single men having to learn how to shop at the grocery store. It is important that men know how to shop because it is a life skill. All adults should know how to shop wisely and how to best spend money while at the grocery store. There are some best practices that single men should use when going to the grocery store that save time and money.
3 Best Grocery Shopping Practices For Single Men
Know How the Store is Organized
Single men should know how to navigate a grocery store. Grocery stores can be broken down to roughly six different sections. First, there is the vegetable section. Second, is the deli and prepared food section features side dishes and prepared chicken. Third, the meat section where you will find seafood and a range of different types of meats in the store. Next, the dairy section is where milk, yogurt, and cheese can be found and is often in the back of the store near the frozen food aisles. Fifth, the frozen aisle is often one the left side of the store and this is where the prepared frozen food can be found. Finally, the canned meat and pasta sections that are in the middle of the store. Those are the main parts of a grocery store.
Navigate the Store
After learning how grocery stores are set up, it is important to know how to be efficient when visiting the grocery store and to buy what is on your list. An important rule to save when going to the grocery store is to stick to a shopping list and not to go to the store when hungry. The simplest way to navigate a grocery store is to start at the fresh vegetables section and then work through the different sections. After all the groceries are picked up, it is time to go to the checkout.
Save Money
There are a few different ways to save money when going to the grocery store. If the produce and meat will be cooked in the day couple of days, buy vegetables and meat that marked downs prices. These reduced priced vegetables and meats should still be inspected before making the purchase, but often times they are fine. This will lower the grocery bill since meat is often the most expensive product at the grocery store. Another way to cut back costs and save money at the store is buy the store’s brand instead of major brand. The grocery store’s white label product is very similar to the branded product and sometime the store’s brand uses the very same source for its products as the name brand. Buy the store’s brand instead of the name product and save anywhere from a few cents to a few dollars. These two steps will help to save money on groceries at the store.
Grocery shopping is a life skill. It requires being committed to a grocery list and not spending more at the store than is required for the week. Single men can follow the three steps to assist them on their next shopping trip. It does not matter if it is the first time or one hundredth time shopping alone. Go in with a plan. Navigate the store. Be effective and get what is needed for meals that week. Purchase products that are listed at reduced prices and buy the store’s off brand.
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
Single people spend differently than couples do, though some spending habits are similar. The main divide is between renting vs. paying a mortgage, going out vs. staying in, and investing in career development or saving for a child’s education. Singles spend more on social nightlife activities in comparison with their ‘married with children’ counterparts. Singles also rent more often, instead of purchasing home. Couples can generally save more money while living together and are able to save up for a down payment on a house, which can be a risk because they are strapped down until they sell or pay off their mortgage. Most singles live in a 1 bedroom, or in a shared place with roommates. Couples evolve into families and eventually need a home with multiple bedrooms for their children. Singles invest more money into education to advance their career. When it comes to staying in or going out, singles have no family obligations and go out with friends more often than not. Money for singles is spent on drinks and bar food, versus baby wipes and family vacations. Singles invest more money into education to advance their career as well.
Going Out Expenses
Single people tend to have more of a social life than married couples, and on average have more friends. Here are the total number of friends that single and married without children that people have, averaging across all age groups:
Women with no children:
9.6 single
7.9 married
Men with no children:
10.2 single
7.8 married
Looking into the spending habits even further, the Bureau of Labor Statistics pulls supportive data that singles on average spend a lot more money on alcohol than married people – especially in your 20’s. In fact, singles spend almost more than double the amount of alcohol, perhaps because signals generally are out with friends rather than at home.
Living Expenses
The living expenses for singles, without roommates, is higher than that of married people. Singles tend to be renters for a longer period of time than their married counterparts, who become homeowners at a much earlier stage than singles. Renting may seem like tossing your money out, but some people view it as though you have more flexibility to move around.
Married couples appear to have it figured out when it comes to locking down and saving money, but most people in their 20’s are still figuring out what they want to do with their life. If you are interested in buying a home as a single person, there are a lot of great references out there to read about how others have accomplished buying a home whilst single. The bulk of buying a home comes down to saving before you budget the rest of your money. Rent until you figure out what you really want to do, or you may risk making a bad investment.
Education Investment
Data notes that single people spend more time and money than married people on educational activities. Singles invest in education for professional and personal interest, and spend time researching and completing homework assignments.
- Single people: 56 minutes a day
- Married people: 5 minutes a day
Education expenses like tuition, fees, supplies, and textbooks, are higher for singles, who on average spend a little more of their income on education than married couples do:
- 1.1% married couples
- 1.8% single men
- 1.6% single women
When it comes to reading, the money spent on purchases of books, magazines, newspapers, and other reading materials is slightly higher for single people in relation to their married counterparts:
- .2% married couples
- .2% single men
- .3% single women
The spending habits are different for singles and married people when it comes to going out on the town and spending on entertainment and alcohol, as well as how much a person spends on living expenses. The educational factor is also different when you compare time and money invested in higher education. Getting a good look at the data is helpful to see what singles are actually up to. Remember to save your money, and work towards getting ahead. Stay secure, singles!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
Many self-made billionaires, like Mark Cuban, started out in similar circumstances to your current walk of life, and in some cases, many of the self-made elites had worse off beginnings than you. The reason they are so successful is that they have developed an excellent work ethic. Mark Cuban shares his top tips for 20-somethings. It turns out that mastering these basic tips can pay dividends for your future self. You will be surprised at how simple these tips are — the top tips actually make a difference if you master the basics.
Never Underestimate the Power of Frugality
Sure you may have roommates in your 20-somethings, but take this time to pay off your student loan debt (if you have any), and save up as much cash as you can. If you have no family, dog, or car payments, take this time to work two jobs. Multiple sources of income are key. Where frugality comes into play is when you start to spend money defensively. Many millionaires and billionaires have amassed large fortunes due to their immaculate ability to watch where their money is going. Do not invest in anything that rots, depreciates, or rusts. Being frugal is one of the keys to building wealth. Don’t let the ‘keeping up with the Jones’s be an issue, having money in your pocket at the end of the day is king.
“It doesn’t matter where you live. It doesn’t matter how you live. It doesn’t matter what car you drive. It doesn’t matter what kind of clothes you wear, [and] the more you stress over bills, the more difficult it is to focus on your goals. The cheaper you can live, the greater your options.” — Mark Cuban
Take What You Can Get & Develop Your Side Hustle
In life you will have many opportunities to change your life. You have the responsibility to take the chances to make what you want to happen. You might not land your dream job right away, but that doesn’t mean you can’t appreciate providing value at a job you currently work at. If you work 40 hours a week, take some time do develop a side hustle which will improve your life in two ways: You will build essential business skills, and the work you do can become your passion that can turn you into a millionaire. Building your own company is a highly advised tool that can make you very wealthy – check into it.
When you find something you love, and the pay doesn’t matter, you’ve found the sweet spot to where your passion will pay dividends, and you will end up making a lot more money doing simply because your heart is in it. Business Insider blog contributor Richard Feloni notes that you need to prioritize your passion over your paycheck if you want to put yourself on a rewarding career path that allows you to thrive.
Be grateful for your current situation, and work like hell to make your dream come true. You will incur failure, but failure is only an indication of striving for the next big thing. Keep moving forward.
“If you love what you do so much that you are willing to continue to live like a student in order to be able to stay in the job, you have found your calling.”
— Mark Cuban
Be the Best You Can Be – In Any Situation
In your 20’s the majority of decisions you make will deeply impact your future, more so than the decisions you make in your 30’s and 40’s. Time is precious, and once you spend it, you can never get it back. Make a decision to be the best you can in any career, living situation, or relationship. When you put your best foot forward, there will be nothing to regret. Make the decision of excellence. When you do your best, you make it easier on the people around you to do what they need to.
If you’re working somewhere that is not your ideal career path, do your best anyway. When you’re outside of work hours, put in the time to develop your profession by doing your business development. Self-education will make you rich.
The above tips may be simple, but mastering the basics is key to your success. Starting in your 20-somethings with the right mindset and the initiation of developing your good habits will be the solid foundation for which you can succeed. Go forth and be amazing!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
A Single’s Guide to Budgeting
We’ve all been there, especially if you are a 20-something. You’ve lived with roommates long enough, and you now want to experience living on your own. Or, you’ve just broken up with your significant other and you don’t know what your next steps will be. In a tough job market with sticky wages, how can you afford to rent a place on your own? How you achieve this boils down to your planning and the action of working your plan.
Learn Your Budget
You need to know how much money you are bringing in, and how much money is going out. A lot of people think they have a handle on their money, but when they go to check their bank account, there is nothing in there.
A simple way to start is to get on the computer, whether your own or one at the library, follow these steps to get the ball rolling:
- Create a Gmail account and login to Google Docs.
- Open up Google Sheets and create a file called, ‘Budget.’
- Log into your bank account and import your transactions into Google Sheets. Here is a video on the process.
- Sort your transactions.
- Your first part of the budget will be your income statement. You will want to start making ways to build multiple streams of income.
- The second part of your budget will be your expenses. You want to list your fixed expenses first. Those are your rent, utilities, car and student loan payments.
- The third part of your budget will be your disposable income. This is the money you have left over for food, gas, and entertainment. Most people who are working to get ahead save 10% of their income and put it in an interest earning account. You will want to do your best to save as much as you can, especially at a young age.
- Compare your income versus your expenses. This is called a cash flow statement. If you are in the red, meaning your expenses are greater than your income, then you need to create a plan of action to increase your income and decrease your expenses.
Cut Your Expenses
You may have necessary items you need to pay for monthly, but there are a lot of items you can do without. It may be as simple as canceling your Netflix subscription or lowering your data plan on your phone. You might also want to cut the cord on your cable bill. If you are living with roommates, find a fair way to opt out. Ask your landlord if you can do extra work for free around the rental space to lower your rent. You can also ask for lower rent if you sign a longer lease.
Plan meetings with your friends once a week, versus multiple times a week and on the weekend. You will cut down your ‘eating out and drinking’ expenses. This will give you a little extra money to save while rewarding yourself once a week by allowing yourself to go out. To keep your food expenses low, eat before you go out, order smaller plates, and even stick to one drink – you can pace yourself by drinking slowly, so you will always have a drink in hand. Enjoy going out in moderation by allowing yourself one special night a week. It is necessary to have money in the bank for survival. Saving is a huge key.
Negotiate
One way you can work to cut your expenses is to negotiate lower prices and interest rates. If you have a student loan, shop around and see where you can find the best interest rates. Ask your current provider if they are willing to compete for your business. If you have an internet bill, ask for a smaller rate. See if you can cut your data back for a lower monthly cost.
Energy Bills
In some states, you can sign up for ‘Non-Peak Hours’. Through Xcel Energy, there is a sign up to do your laundry, dishes, and showering between 9 pm and 9 am which are the ‘Non-Peak Hours’. Your kwh usage is literally cut in half. This includes lighting and internet usage during the day. Your energy bill can be cut in half, and this will put more money in your pocket.
Save Money
Depending on your bank, you can set up automatic transfers to save your money for every deposit. Generally, you want to save 10% of everything you own. This comes from ancient scripts.
Related:
- The 50/30/20 Budget For Singles
- 50/30/20 Budget Versus 60/30/10 Budget
- 15 Habits To Build Wealth For Singles
Refinance
If you have student loans, you most likely can consolidate and shop for a lower interest rate. Companies like SoFi and DRB are helping students refinance their loans and get a better rate. To pay down your loans faster, take the extra money you squeeze out of your budget, and put it towards the principal each month.
All steps can help you get out on your own, and to afford a place of your own. It may seem hard to do right now, especially when you are a 20-something with low cash flow, but if you work hard at building additional income, paying down debt, and saving money, but you will be in a much better financial position to take care of yourself. stick to the steps above, you may be in a better financial position. Keep yourself financially literate and up to date on where your money is going. For more information on budgeting and getting out of debt,m check out Dave Ramsey.
The principal is simple: lower your expenses, save money, and work towards making more money to pay down loans. Not only will this help you build up cash reserves for yourself, but it will also allow you to have more money to go towards a single apartment you can rent all by yourself. Being financially independent is possible, plan your work, then work your plan!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
What You Should Know Before Filing Your Taxes: A Singles Guide
The tax deadline for Americans is slowly creeping up this April 18th of 2017. Have you ever wondered how you can file your taxes to receive benefits as a single person and as the head of your household? Have you also thought about what types of penalties you are receiving by filing as a single person as well? How you file your taxes can either benefit you or be a burden, it all depends on where you live and what you deduct.
Many people already know about the benefits married people have by filing their taxes together. This may be a hint from the government to encourage people to get married and to chastise those who are single. When married couples file taxes together the IRS gives joint filers a larger standard deduction and a lower percentage of taxable income based on a couple’s tax bracket.
What are some of the benefits of filing as a single person?
There are not really any special tax deductions for singles who file their taxes. Unless you have a mortgage or dependents, you will generally pay more money on your taxes in comparison to the average married couple. If you file as a single person for your taxes you have a standard deduction of $6,300. In comparison, if you are a single parent who is filing as the head of the household in 2016, then you will have a standard deduction of $9,300 for the tax year 2016. Married persons filing jointly receive a $12,600 standard deduction.
How do I file as a single?
You can claim the single filing status when you prepare your return on any of the 3 major tax return forms: 1040EZ, 1040A, or 1040.
What percentage of your income is taxable?
Your income will determine the tax bracket that you are in. It is different for people who file single versus married couples filing jointly. See the chart below to find your tax bracket. As you can see, married couples are taxed less on their income for state and federal taxes. Head of households do receive less taxable income due to their dependents.
Alaska’s income tax bill
If you’re single then you definitely don’t want to move to Alaska for tax purposes. Alaskan Governor Bill Walker plans to tax singles at a higher rate than their married peers. In Alaska, a single person with no dependents who makes $50,000 a year will be taxed about $867, versus married couples who will pay about $484. The policy clearly is penalizing singles. The variance is much higher in Alaska than in the majority of states in the US.
What Penalties Do Taxpayers Incur?
There are many penalties that you can incur if your taxes aren’t filed properly. You can also receive a penalty if you don’t have health insurance. According to Nerd Wallet, “For the tax year 2016, the penalty will rise to 2.5% of your total household adjusted gross income, or $695 per adult and $347.50 per child, to a maximum of $2,085.”
There is also a penalty for filing your taxes late without an extension. April 15 is the deadline for the majority of people to file their federal income tax return and also pay any and all taxes they may owe. The IRS notes that by law they may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.
You can also be penalized if you underpay or underestimate the amount of taxes you owe. However, the law allows the IRS to waive any penalties if:
- You didn’t make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or…
- You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect.
What can you report on your taxes to receive a benefit?
Even if you are single, you can set up your finances to benefit you when you file your taxes. Here is a handful of tax write offs you can include on your next tax return:
1. Deduct Student Loan Interest
If you owe debt on your student loans, then you can benefit by filing what you paid in interest. When you file, you will need your 1098-E Student Loan Interest Statement, which is generally sent after the first of the year via mail for both private and federal student loans.
2. Medical Deductions
The money you spend on medical care can be deducted from your taxable income, this includes dental care and health insurance premiums. If your total medical deductions add up to more than 7.5% of your adjusted gross income then you can only deduct the costs above that figure.
3. Charitable Donations
You can deduct any charitable contributions you make during the tax year to write off on your taxes. To meet IRS standards, you must make the donation to a qualified organization. Friends, family, and for-profit businesses do not count.
Summary
Taxes can be a lot to undertake, especially if you’re single and seem to get the short end of the stick. Keep track of your finances and work to find as many deductions as you can. This will help you get ahead in some ways. For help with your taxes consult with a CPA to help you find loopholes and extra deductions you may not have known about. April 18th draws near, don’t forget to file!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
Being Single Can Improve Your Life
It has been said that being single as an adult can be quite a stigma. How do you combat a statement that the majority of the population notes? The answer is simple: find data and statements that back up why being single can actually be a positive way to live your life. I feel deep down that the majority of many single people are influenced by the media that some fairy-tale relationship exists and that because we are single we are missing out. Apparently, this isn’t the trend:
“In 1962, half of the 21-year-olds and 90% of 30-year-olds had been married at least once.
In 2014, only 8% of 21-year-olds and 55% of 30-year-olds had been married.”
From time to time, I feel the same. How do you combat those lonely nights, or not having a welcoming and sweet voice to greet you at the door when you come home from a long day? Be compassionate with yourself, and understand that it is all in mindset. Organize your life in such a way that you become to fulfill all of your life’s desires with rich friendships, extraordinary moments and experiences, and attain the feeling of fulfillment when you accomplish life’s goals.
After scouring the internet, I found many positive examples of why being single can actually be a good thing. For one, you have a lot more time to be with yourself and meditate. You have more time to Know Thyself, which is one of the fundamental principals to understand the meaning of life.
Single people tend to be more social. Singles are more likely to stay in touch with family and friends, as well as keep be sociable with their neighbors. Socialization is key, it’s part of being human.
Without the responsibilities of tending to a family you’ve created, you can invest that time in relaxing and doing leisurely activities. Have you heard about the importance of rest and recovery? It goes a long way to ‘sharpen the saw’ by occasionally participating in activities that promote your well-being. Relaxation is key for survival in our current fast paced world. The BLS found that single people spend on average 5.6 hours a day on overall leisure activities, in comparison to married people who spend about 4.8 hours a day on leisure.
Exercise. Single people have more time to work out in comparison to their married counterparts who tend to get fat after marriage.
A recent study by W. Bradford Wilcox, director of the National Marriage Project at the University of Virginia, and Robert Lerman, an economics professor at American University found that single women professionals earn more money than married women.
Just because you are single does not mean you have some sort of social status stigma, it means you have more time to do the things you enjoy without having strings holding you back. If you really want a relationship, then you will find one — and no matter how hard it is, you will find a way to make it work. If you are single and in a stage of uncertainty (this feeling will come and go), you can find the silver lining. Good luck out there Secure Singles, find a way to see the bright side of life. Live it up!