Financial Planning for Single Individuals

Single individuals should align financial planning with their unique goals and priorities, rather than planning differently from married couples.

### Personal Finance Planning for Single Individuals
* 💰 " I don't think that single people need to plan differently because all planning is really a function of **what are your goals, what are the things that you want money to allow you to do**.
* 💑  The goals of a single individual with no kids might look different than the goals of a married individual who has kids.
* 📈 " It's ultimately your **goals and priorities** that should inform the decisions you're making around savings and how you're **attacking them**.
* 🏠  Logistically, a single person might need **6 months of expenses** for an emergency fund versus **3 months for a dual-income married couple**.
* 👨‍👩‍👧‍👦 " Legacy probably looks a little different... you'll need to be thinking about **what is this money's why, what's the purpose, what are you going to do with this**.
* 🦸  Long-term care insurance might be more of a **peace of mind thing** for single individuals, and they need to make decisions early while they're **able-bodied**.
* 🦶  For single individuals unsure of where they want to be in the next five to seven years and without a stable job, **home ownership may not be an interim goal**.

[Music], so we're going to move right on to another question from chaotic Enigma. Oh wow, fancy username. Uh, chaotic Enigma says as a single person without any kids, do single people need to plan personal finances any differently than a dual income married couple? Save more for healthcare and retirement, other considerations, what do you think? Well, you know what, it's interesting. I'm going to say no, but let me tell you why I'm going to say no. I don't think that single people need to plan differently because all planning is really a function of what are your goals, what are the things that you want money to, what are the things you want money to allow you to do. Is it to travel, is it to have a family, is it to be financially independent, is it to not work, is it to, you fill in those blanks. Well, what's really, really interesting is the goals of a single individual with no kids might look different than the goals from a married individual who has kids, right, like what they want to do at

different stages and stations of life might change, so I'm going to argue that the behaviors and the patterns are not necessarily different. What's different is the finish line that you're working towards. Maybe as a single person, you say, Hey, I only want to work until I'm 50 years old. I really want to do this fire thing and I don't want to travel around. Well, that might look different than someone who says, Hey, I really want to work until my kids go to college. I want to make sure I pay for that and I want to make sure that I have all of these things lined up. You might have different goals and priorities, and it's ultimately your goals and priorities that should inform the decisions you're making around savings and how you're attacking them. I like how you laid that out because a lot of the things I was writing down were kind of retirement-type things, but I do think it's also going to impact life insurance and estate planning. It's going to probably be more simplistic in some ways.

maybe you have less expenses on that even in the in the building years. Um, it really depends on where you are in the journey. If you're in your 20s, 30s, and 40s, it's going to look different from somebody who's in their 50s and 60s with with this question. So, but I will tell you what I liked what Bo was talking about is that your your result might be different, especially like long-term care insurance. Um, if I was somebody who was single and you don't have kids and you don't have a spouse, you might want to think more long-term care is more of a peace of mind thing that I tell people to consider when they look at get in their 50s and in that one you kind of will be in the the driver seat, especially if you're worried you won't have somebody to speak on your behalf. Um, you can go ahead and make some of those decisions yourself to make sure you make those decisions while you're

you're able-bodied and so forth. Legacy probably looks a little different if you know CU. A lot of times when we have prospects and clients come on board, they have these goals to leave this amount of money to the children, or not to leave more than this amount to the children. You're not going to have that, so you'll need to be thinking about 'cause you're probably still going to be tremendously successful, and you've got to start thinking about what is this money's why, what's the purpose, what are you going to do with this. Make sure you're just putting in that effort to understand how those decisions are impacted and what your savings rate and your goals. It's back to Bose's point, I think he laid it out beautifully, your priorities and your goals are going to shape what these things look like in the long term. Yeah, I'm just thinking through like logistically, like maybe, maybe for a single person it's 6 months of expenses.

versus three months of expenses for an emergency fund. Maybe for a single person who, if you don't know that you're where you want to be for the next five, seven years, and you don't have like the job, maybe home ownership is not like an interim term goal. Where someone who's trying to like start a family and establish roots, it is an interim term goal. So those kinds of things may look different, but what's beautiful is the foo is still for you. The foo will still guide you 'cause no matter what your goals are, the financial order of is going to allow you to work towards those goals in the most efficient and effective manner possible.

Do Single People Need to Have a Different Financial Plan Than Married Couples?

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Financial planning for single individuals is driven by their specific goals, which may differ from those of married couples, rather than by their marital status.

The goals and priorities of a single person, such as early retirement or solo travel, may impact their savings and financial decisions differently than those of a married individual with children.

Estate planning and life insurance may also be impacted by the unique circumstances of a single person.

The Importance of Age in Financial Planning

Financial planning looks different depending on one's age and stage in life, with long-term care insurance being more crucial for singles without dependents.

In your 50s and 60s, you have more control over decision-making for your future care.

It's important to consider your stage in life when making financial decisions, especially if you may not have someone to advocate for you in the future.

Financial Planning for the Incredibly Successful

Financial planning for the exceptionally successful requires a different perspective, focusing on the purpose and impact of their wealth.

It's essential to understand the influence of their decisions on savings and goals, with priorities shaping their long-term financial outlook.

For a single person, a recommended emergency fund is around 6 months of expenses.

The Role of an Emergency Fund in Financial Planning

An emergency fund is crucial for financial stability, covering at least three months of expenses.

The need for home ownership as a short-term goal varies depending on individual circumstances, such as starting a family.

Regardless of the goals, a solid financial plan is essential for efficient goal pursuit.