In the movie “I Now Pronounce You Chuck and Larry”, Adam Sandler and Kevin James’ characters play two straight men who get married in order to get tax benefits. It turns out, they were on to something. One of the most expensive events you can ever throw, a wedding, may actually lead you to save huge sums of money.
Here are 8 financial benefits a married couple has.
Let’s assume both you and your future spouse are employed and get health benefits at work. But their benefits are much better than yours. Well once you’re married, they can add you to their insurance, surely saving you hundreds of dollars per year.
Car and Life Insurance
You’ll find that most auto insurance policies offer lower premiums if you are married. The statistics show that a married man is less likely to get into an at fault accident than a single man. The reasoning behind this is that he is not single and reckless, but rather a more mature person who has responsibilities like children. The same concept can also be applied to life insurance premiums.
Combining Your Policies
Many insurance companies will offer you an additional discount if you have more than one policy with them. Say you have auto insurance with Farmers and your partner has life insurance with them as well. By contacting them and linking these accounts, you can apply for a multi-line discount.
You can also get a rate reduction by adding you and your spouses vehicle to the same plan to qualify for a multiple car discount. If your spouse is a teacher or nurse or in the military you can then qualify for additional discounts.
Splitting Your Monthly Bills
When you get married the combined costs of living don’t exactly double. In fact, they only rise a little. Think about it, instead of each of you paying rent, you would split the cost of the rent. Even if you move into a larger place you’ll still save money. But don’t stop there, split every bill too if you want. Now you can split the electricity, internet, cable and any other household bills. You can even cancel one of your Netflix or Hulu accounts if you each have one.
Sign Up For Cell Phone Family Plan
Your cell phone bill is expensive. If you’re single it could be as high as $80 per month for a smartphone. The cost of adding your new spouses’ phone? It could be just another $20. Now your bill is $100 ÷ 2 = $50/mo. You would share the minutes, data and text messages.
Making Bulk Purchases
When you’re single your trips to the grocery store probably involve talking a short walk to the nearest store to buy the small amount of food and household goods you need. But you’re missing out on good deals on bulk purchases. Things like ‘buy 3 get 1 free’ deals or buying paper towels and toilet paper in bulk. As a married couple you can also choose to invest in a Sam’s Club / Costco membership to find cheaper items to buy in bulk.
Filing Your Taxes Together
When you file a joint tax return there’s a chance you will lower your overall tax liability. It’s all about what tax bracket you fall into. As a single person who makes a good amount of money, you may be in for some savings. If you make $100k for the year you would fall into the 28% tax bracket. But if your new spouse makes $40k, together your incomes ($140k) would now fall into the 25% tax bracket. That 3% difference is good for a few thousand dollars less in taxes.
Utilize Your Spouses’ Knowledge
Everyone has their strengths and weaknesses and two heads are always better than one. Together you can utilize your best strengths to help save the both of you some money.
- Bills: If one of you is better at paying bills on time, that’s their new responsibility.
- Cooking: If one of you can cook, that’ll save you by not having to eat out every day.
- Saving: The spouse who can manage money the best is now in charge of making sure the joint emergency savings account is taken care of.
- Laundry: Those quarters at the laundromat add up. Now maybe your spouse can do your laundry for you and save you both time and money.