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Select previously discussed a group of individuals who are high earners but aren’t rich yet (known as HENRYs). In short, HENRYs have higher-than-average salaries but often don’t think they’ll become rich because of factors like high tax rates, high cost of living and student loan debt, or they might be building their wealth yet don’t have enough saved yet to be considered rich.
If you’re someone who’s part of a couple with two incomes and no kids, don’t worry, there’s a name for you, too. You’re what’s known as a DINK — otherwise an acronym for Dual Income, No Kids.
DINKs often split household and lifestyle expenses and work toward financial goals together. It can often be easier to reach a goal on two incomes rather than just one. And when you don’t yet have children, you have more flexibility, and likely more disposable income, to be more aggressive with certain goals.
But regardless of how much your combined income adds up to, what you do with the money is more important. We asked Brian Walsh, a CFP at SoFi, to weigh in with some advice for childless dual-income couples who feel ready to take their next steps financially. Here’s what he shared.
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1. Discuss which goals you’d like to prioritize as a couple
It’s important to note that just because you’re part of a dual-income household, it doesn’t always mean you’re automatically financially well off. Factors such as salary, cost of living, debt and necessary personal expenses can all play a huge role in a couple’s financial health. So, first thing’s first: You need to cover a few financial bases as a couple. This can include having a fully funded emergency savings account for the two of you, making sure you’re each contributing enough to receive any match on both of your company’s 401(k) accounts (if applicable) and paying down high-interest debt.
According to Walsh, once a couple has these financial boxes checked, they should begin to talk about how to prioritize their other major money goals.
“From here, you can focus on what is most important to you,” he says. “For some, this may be retiring early, so you will want to focus any extra savings toward increasing your retirement contributions. For others, it …….