Financial Benefits Of Marriage
The financial benefits of marriage provide multiple reasons for many people to wed. And while money should not be the sole reason for matrimony, couples with two incomes can usually afford a better lifestyle than singles. Their combined ability to achieve financial stability and creditworthiness, realize greater buying power, and prepare for a better retirement are all incentives to say, "I do." Two are better than one; because they have a good reward for their labour. For if they fall, the one will lift up his fellow: but woe to him that is alone when he falleth; for he hath not another to help him up. Again, if two lie together, then they have heat: but how can one be warm alone? And if one prevail against him, two shall withstand him; and a threefold cord is not quickly broken" (Ecclesiastes 4:9-12).
Money or the lack thereof can either make or break a marriage; but the decision to settle down may be the beginning of financial stability. When individuals decide to marry, making an assessment of assets and liabilities will determine the future fiscal fitness of the marriage. Couples should first determine what individual debts will be carried over into the union. If one spouse has an outstanding student loan or medical bill, the decision must be made whether the debt will be paid as a single or shared as a couple. Delinquent debts must also be dealt with so that the liability for individual indebtedness does not ruin an innocent spouse's credit. Full disclosure is necessary if two people plan to marry, because in a court of law husbands and wives can be equally liable for unpaid bills. Imagine how distressed a newlywed will be to discover that their credit is ruined by a new husband or wife! The two should also determine if it will be necessary to have separate or joint bank accounts, or both; and if they can afford to start saving. One of the financial benefits of marriage, especially in a two-income home, is that there are additional resources available to manage debts and achieve financial stability. Setting up a monthly budget will enable newlyweds to better handle combined income and combined liability.
In an uncertain economy, it is wise to have more than a single income stream; and husbands and wives who can contribute to the household financially stand a better chance of keeping their heads above water. In the event that the primary breadwinner becomes too ill or disabled to work, a second income can keep the family afloat. Unlike singles who may defer making financial plans, married couples tend to set present and future financial goals, especially when children are involved. They are unlikely to splurge on big ticket luxury items, such as vacations, electronics, or expensive cars that appeal to singles. Couples willing to pool resources can realize the financial benefits of marriage by making prudent choices about routine spending and saving for future big-ticket items, such as a new home or vehicle.
To a lender, the financial benefits of marriage are obvious: married couples tend to be more credit worthy. While singles may change jobs and move more frequently, those who are married will likely stay in the same career and the same neighborhood longer. Job security and residential longevity are important to lenders, thus giving stable married couples the advantage over carefree single loan applicants. Lenders will also lean more favorably toward families where both spouses are employed because the loan is more likely to be repaid and thus, two-income households tend to be more creditworthy than singles. Mortgage companies know that in the event of an untimely death or disability of the primary borrower, the surviving spouse may be able to keep up payments, or a death benefit may pay off the loan in its entirety.
When it comes to buying power, or the ability to purchase larger ticket items, the financial benefits of marriage cannot be overstated. While an individual spouse's income might not qualify families to purchase a home or automobile, combined incomes boost their buying power. Lenders are able to take into account the sum total of both salaries and qualify couples for a larger loan that may better suit their needs, especially for a growing family. Dual incomes also offer more spending flexibility. While the temptation to spend more because there is more to be spent should be avoided, two-income families are better able to stretch their dollars to meet unexpected bills, save for college and vacations, or invest in stocks and bonds or purchase CDs.
Finally, the financial benefits of marriage offer couples the ability to retire more comfortably than singles. In the golden years of life, single retirees often must seek part-time employment to make ends meet. But husbands and wives who together plan and save throughout the marriage through Individual Retirement Accounts (IRAs), 401ks and other employer provided plans, can realize brighter days in the eve of life. They have learned how to budget have learned how to prepare for the future and are more likely to set aside savings, stock portfolios, and other investments to safeguard the future and provide a comfortable lifestyle for later years. The financial benefits of marriage also include home ownership and the opportunity for qualifying senior adults to obtain a reverse mortgage if needed, applying for a loan based on home equity. A reverse mortgage provides a source of retirement income without the worry of paying it back. As partners make plans to head to the altar, making an assessment of the financial benefits of marriage and how they impact the quality of life for the future is invaluable.
Money or the lack thereof can either make or break a marriage; but the decision to settle down may be the beginning of financial stability. When individuals decide to marry, making an assessment of assets and liabilities will determine the future fiscal fitness of the marriage. Couples should first determine what individual debts will be carried over into the union. If one spouse has an outstanding student loan or medical bill, the decision must be made whether the debt will be paid as a single or shared as a couple. Delinquent debts must also be dealt with so that the liability for individual indebtedness does not ruin an innocent spouse's credit. Full disclosure is necessary if two people plan to marry, because in a court of law husbands and wives can be equally liable for unpaid bills. Imagine how distressed a newlywed will be to discover that their credit is ruined by a new husband or wife! The two should also determine if it will be necessary to have separate or joint bank accounts, or both; and if they can afford to start saving. One of the financial benefits of marriage, especially in a two-income home, is that there are additional resources available to manage debts and achieve financial stability. Setting up a monthly budget will enable newlyweds to better handle combined income and combined liability.
In an uncertain economy, it is wise to have more than a single income stream; and husbands and wives who can contribute to the household financially stand a better chance of keeping their heads above water. In the event that the primary breadwinner becomes too ill or disabled to work, a second income can keep the family afloat. Unlike singles who may defer making financial plans, married couples tend to set present and future financial goals, especially when children are involved. They are unlikely to splurge on big ticket luxury items, such as vacations, electronics, or expensive cars that appeal to singles. Couples willing to pool resources can realize the financial benefits of marriage by making prudent choices about routine spending and saving for future big-ticket items, such as a new home or vehicle.
To a lender, the financial benefits of marriage are obvious: married couples tend to be more credit worthy. While singles may change jobs and move more frequently, those who are married will likely stay in the same career and the same neighborhood longer. Job security and residential longevity are important to lenders, thus giving stable married couples the advantage over carefree single loan applicants. Lenders will also lean more favorably toward families where both spouses are employed because the loan is more likely to be repaid and thus, two-income households tend to be more creditworthy than singles. Mortgage companies know that in the event of an untimely death or disability of the primary borrower, the surviving spouse may be able to keep up payments, or a death benefit may pay off the loan in its entirety.
When it comes to buying power, or the ability to purchase larger ticket items, the financial benefits of marriage cannot be overstated. While an individual spouse's income might not qualify families to purchase a home or automobile, combined incomes boost their buying power. Lenders are able to take into account the sum total of both salaries and qualify couples for a larger loan that may better suit their needs, especially for a growing family. Dual incomes also offer more spending flexibility. While the temptation to spend more because there is more to be spent should be avoided, two-income families are better able to stretch their dollars to meet unexpected bills, save for college and vacations, or invest in stocks and bonds or purchase CDs.
Finally, the financial benefits of marriage offer couples the ability to retire more comfortably than singles. In the golden years of life, single retirees often must seek part-time employment to make ends meet. But husbands and wives who together plan and save throughout the marriage through Individual Retirement Accounts (IRAs), 401ks and other employer provided plans, can realize brighter days in the eve of life. They have learned how to budget have learned how to prepare for the future and are more likely to set aside savings, stock portfolios, and other investments to safeguard the future and provide a comfortable lifestyle for later years. The financial benefits of marriage also include home ownership and the opportunity for qualifying senior adults to obtain a reverse mortgage if needed, applying for a loan based on home equity. A reverse mortgage provides a source of retirement income without the worry of paying it back. As partners make plans to head to the altar, making an assessment of the financial benefits of marriage and how they impact the quality of life for the future is invaluable.
Financial Benefits Of Marriage
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