Despite the advent of gay marriage nationwide, are you a confirmed bachelor or bachelorette? No matter if you’re straight and just using an old gay cliché ironically or not, there are separate issues for single people and you may need to think financial planning differently than your married compatriots.
Proper financial planning will protect your earnings and property in the future, when you might need to take care of yourself when you don’t have someone to fall back on.
So, first thing: you probably want to start saving up for an emergency fund that can pay for your basic living expenses for a reasonably long time. As accountants, we’re going to tend toward saving for a longer period—six months to a year—but that’s more than most people can manage. Still, getting into the habit of saving money is something that will really help you manage your finances throughout your life, so you should start now.
Second, insurance is especially important to single people. Not just health insurance, but disability insurance can provide a steady income stream if you’ve been hurt or gotten seriously ill. Some employers provide them, but there are private disability insurance plans out there too. Life insurance might not seem that important if you don’t have kids or pets, but if anyone relies on you financially, you really should think of getting a term life insurance policy to protect them.
Third, even if you don’t have close friends, you can still find a trustworthy lawyer or law firm that will make medical or financial decisions according to your specifications if you can’t make them for yourself. Also, they can help you create a will (or perhaps a trust) and naming beneficiaries for any savings accounts, you can make sure your money goes where you want after you die.
Although this basic outline might give you some ideas about what you need to think about, everyone’s finances are different, and you probably should see a financial planner about your unique needs. We can recommend someone to help you with that, or help you with some aspects ourselves.
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