Get Married in a Recession

Why Marriage is Good in a Recession

Getting married is one of the most powerful financial steps you can make in your life.

Throughout the history of mankind, family has been the most basic and necessary economic unit. Despite high divorce rates, this fact remains true today and will continue to be true in the future.

Marriage can increase your income substantially. A family provides financial stability, especially if there are two or more income earners. Families allow individuals to specialize in particular tasks just as one would outside the home. Parents can negotiate about who takes care of the children, who does the laundry, and who pays the bills. This increases the time efficiency of a couple’s daily tasks, leaves greater time to earn money, and leads to better money management skills by working as a team.

Marriage can also reduce your costs substantially. Families are viewed as ideal renters or borrowers, allowing couples to obtain better housing at cheaper rates. If one partner wants to return to school to get more marketable skills, it is easier with the support of a spouse who can make up for the lost income.

Here are some examples of big savings couples get from being married:

Insurance on a per-person basis is cheaper for health, home, and auto when it is purchased under a family-wide policy.

Memberships to gyms, clubs, and other organizations are cheaper.

Living together (as a married couple or domestic partners) provides the opportunity for both people to be covered by one employer’s benefit plan, eliminating the need for and cost of two plans.

Sharing bank, investment, and other accounts reduces fees and transaction costs.

Owning only one car, or a commuter car and an SUV, is far more cost-efficient.

Utilities such as electricity, gas, telephone, internet, garbage, etc. are all cheaper on a shared basis.

Buying a family home provides a large tax deduction for home loan interest. This is essentially "free rent" and has an immediate large positive effect on your net income. Under U.S. Federal and state tax regulations, interest paid on a home loan is tax-deductible (up to certain limits). Most young couples finance 70-80% of their home purchase, making this deduction very substantial, equalling approximately 60-65% of their home payment. This can be viewed as "free rent", in addition to the potential capital gains earned over time on the property.

Getting married, buying a home, and raising a family will build your wealth, improve your credit rating, and give you a large nest egg for the future, without working more hours or making more money.