Should we marry for love or for money?
1. Why do married people end up having so much more wealth than single or divorced people?
Married people can end up having more money than single people because when you are married everything is split into 2.
I currently live alone; when I moved into my place it was unfurnished so I had to buy the furniture, appliances, pay deposit, rent and a bunch of other fees, including groceries.
As a single person I had to cover all this on my own, which cuts down my savings and investments in one fell swoop, slowing down the amount of money I save in a given month, which decreases my long term investments in the future.
A married couple that earns the same amount of money would have the same expenses but 2 salaries to cover their expenses so individually they would pay 50% of what a single person pays, thus increasing their income after expenses.
This additional income can be invested and can build into quite a sizeable nest egg.
My gut feel also tells me that single people probably go out more often than married people, who have each other for company, which further cuts into their expenses.
2. From a financial point of view, what advantages are there to getting and staying married?
Tax laws in South Africa, and most other countries, favor married people.
Even though married people pay individual tax on salaries, tax payers who are married in community of property are taxed at half their rental income, dividend income and capital gains tax no matter in whose name the property is.
Again this means that tax income is divided into 2 and married people only pay half of what single individuals would pay.
According to a Pyschology Today article married men get promoted faster than single men, whereas single women get promoted faster than married women, this could be because most married women have a second shift – looking after kids and other household duties.
A single man has to cook for himself, do his own laundry, go grocery shopping etc. whereas most time a married man has someone that cooks for him, does grocery shopping etc.
What it means is that a married man gets time to focus on his career instead of doing housework.
He can networking with other business leaders after hours, which is where career and business decisions are being made. Whilst his wife holds it down at home.
The fact is, marriage often leads to a promotion for a man, which brings more money and with that more wealth for the household.
3. Should you marry for love or for money? Why?
Research has found that most marriages break up because of money. You can predict the probability of divorce by how often a couple argues about money.
Dave Ramsey says that you haven’t begun to have a relationship until you’ve discussed money with your partner.
You may love the person but if your relationship with money isn’t sound, the marriage won’t last and will actually lead to financial stress.
My argument would be to marry for love and because you have similar values and attitude towards money.
I'd argue that marriage alone doesn’t lead to financial freedom or wealth. It’s the way that the couple thinks and communicates about money that makes a marriage financially profitable.