When you’re planning to save with your spouse, it can be tricky to know what’s best: going alone or saving as a couple. So, what are the facts, and how can you decide which is best? In this post, we look at the pros and cons of each.
If you’re saving alone, you don’t have to consider the debt of the other person involved, or any imbalanced savings amounts that could cause any arguments. When you save alone, you know that all the money you save is for you. You also won’t need to come up with any compromises about who is saving what amount of money and where the money will go.
However, if you live alone, then it’s highly likely that you have an incredibly high level of outgoings, which means that you won’t be able to save as much as you would be able to with a joint income.
However, living or saving with someone allows you to lower your outgoings by splitting the cost, allowing you to both save more. By jointly saving into the same ISA, you’ll also be able to maximise the benefits, too.
If you live with your partner, then it’s likely that you already have a number of joint investments/ outgoings, such as a mortgage.
You’ll also have two salaries coming in each month. The more you save together each month, the savings will soon add up. For example, and extra £100 per month equates to £1,200 a decade, or around £60,000 over the course of your working life. Money adds up quickly, and saving together allows you to earn more.
However, obviously, there are downsides to this. For example, if one of you is ill or is made redundant, then your incomes will reduce, but your outgoings will stay constant, meaning you’ll be unable to save as much between you. As such, you may have to over-save in case of emergency outcomes, such as one of you going to a nursing home.
In addition, if you split up, this could also be a big problem that impacts on your savings. Although divorce experts will help you divide your savings accordingly, there’s no guarantee that you’ll get all of your money back; especially if you put the lion’s share of the money in.
To conclude, saving individually and as a couple both have positive and negatives. Research these thoroughly and select the option that’s best for you.