Saving Money / Relationships
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Traditionally, married people tend to be better off financially than those who are single — and thanks to inflation, this is now more true than ever.
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The wealth gap between the two types of households had been steadily increasing even before inflation skyrocketed. In 2010, the median net worth of married couples 25 to 34 years old was four times as much as the median net worth of single households; as of 2019, married couples were worth nine times as much, The Wall Street Journal reported. Inflation is now making it even harder for single-person households to get by, as they must navigate rising house prices and other expenses on just one income.
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Although it’s not easy for a household with one income to accrue wealth in the same way that a household with two incomes can, there are some actions single people can take to close this wealth gap.
Cut Down on Discretionary Spending
The less money you spend on discretionary expenses, the more money you can put toward building wealth. Andre Jean-Pierre, managing director and financial advisor at Aces Advisors, recommends reducing spending on takeout.
“Delete all food delivery apps off of your phone,” he said. “Many of my millennial clients are ordering takeout seven to 10 times a week at an average of $30 a meal. This can easily top $1,000 a month.”
He also recommends making savvy shopping choices rather than splurging on designer clothes and accessories.
“Single clients, in my experience, are more likely to splurge on luxury items,” he said, noting there is a better way to spend this money. “The stress clients take off their shoulders by paying down debt and having an emergency fund goes a lot further to improving their quality of life.”
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