“Wisdom for Wealth. For Life.” Episode 45: Financial Planning Tips for Singles
Many adults are staying single longer than ever before. The average age of first marriage has steadily increased over the past 50 years, with men now marrying for the first time at 30+ and women in their late 20s. This demographic shift means more people are navigating significant financial decisions—from home purchases to investment strategies—on their own.
Blue Trust private wealth advisors Stephanie Adams, CFP®, CPA, and Mary Helen Klingen, CFP®, CPA, CKA® plus senior financial planner Jonathan Lowery, MBA, CFP®, CKA® recently discussed the unique financial considerations singles face. Their conversation revealed both the challenges and opportunities that come with managing finances as a single person.
Don’t Go It Alone: The Importance of Financial Accountability
One common misstep singles make is keeping their finances completely private. “I feel like the natural tendency is to keep it to myself and not really share about my finances with anyone,” Stephanie noted from her personal experience.
But accountability is crucial for everyone. Mary Helen emphasized the biblical foundation for seeking financial counsel: “Proverbs 11:14 tells us that victory is won with many advisors. We know that we make wise financial decisions when we ask for advice.”
The key is finding the right people to bring into your financial conversations. Look for individuals who demonstrate biblical wisdom with money, pursue the Lord in their own lives, and ideally seek financial advice themselves. This trusted circle might include pastors, mentors, family members, or financial professionals.
“When single adults tell someone about their finances, they take this deep breath, because it’s typically a corner of their life that nobody knows about,” Mary Helen said. “When we bring someone in, they’re able to fellowship with us, and they’re able to encourage us. They’re able to say, ‘Hey, you’re actually doing okay.’” If you’ve gotten off track, a trusted friend or professional can help you find your way back.
Your Flexibility Can Be a Superpower
Often single adults who are not raising children have more financial flexibility because their time, resources, and talents are not pre-committed to other people or responsibilities.
This flexibility may enable singles to make bold career moves or investments (of time and money) others might not be able to consider. “I’ve seen single adults move from corporate jobs to ministry jobs or on to the mission field,” Mary Helen said. “I’ve seen them start businesses. I’ve seen them move across the country because the Lord told them to.” They often have less obstacles to overcome or commitments to consider when an opportunity presents itself. However, if God calls any of us to something He will make a way for us to get there.
To maximize this financial flexibility, singles need robust emergency savings—potentially more than the traditional three to six months of expenses. Depending on your profession and the pivot you’re making, consider saving six months to two years of expenses instead.
The Rent vs. Buy Decision
The home ownership question can be complex for singles, who must weigh flexibility against wealth building. Jonathan pointed out that renting maximizes flexibility: “If you purchase a home, you’re kind of stuck there. But if you’re renting the home, you have more flexibility.”
However, the financial comparison isn’t quite as straightforward. When renting, your monthly payment represents your maximum housing expense. With homeownership, your mortgage is just the baseline, and property taxes, maintenance, and unexpected repairs add to the cost, but a home is also an investment that enables you to build equity.
Key questions to ask yourself include: Where do I want to live relative to work, friends, and church? How flexible is my job to handle home repairs during business hours? Am I handy enough to tackle projects myself, or will I need to hire someone? These lifestyle considerations often matter as much as the financial calculations.
Insurance Needs for Singles
Singles face unique insurance decisions since they can’t rely on a spouse’s income or caregiving abilities. Disability insurance becomes particularly crucial. “If you’re no longer able to care for yourself, you’d have to lean on a family member,” Jonathan said.
Consider both short-term disability (covering three to six months) and long-term disability insurance (six months and beyond). Health insurance remains essential regardless of age or current health status, as accidents and medical emergencies can create substantial costs.
Life insurance presents a more nuanced decision for singles as well. They must independently think about dependents (if any), final expenses and debts, and their insurability while young and healthy.
Investment Strategy: Start Early and Stay Consistent
Single investors face the same fundamental principles as married individuals but with some unique considerations. “The Bible talks about building wealth through discipline, controlling a lifestyle, spending less than you make, and doing it for a long period of time,” Jonathan said.
The key advantages singles have in investing include:
- Earlier start potential: Without family expenses, singles may be able to invest aggressively in their younger years, taking advantage of compound interest over longer periods.
- Tax optimization opportunities: Single earners will hit higher tax brackets more quickly. Strategic use of retirement accounts, health savings accounts (HSAs), and charitable giving can help minimize the tax burden.
- Simplified decision-making: You don’t need spousal agreement on investment decisions, allowing for quicker response to opportunities or changes in strategy.
The Power of Generous Giving
Perhaps no area offers more opportunity for singles than charitable giving. Mary Helen shared how generosity became central to her own financial journey: “Charitable giving was the answer to start really walking in obedience. Because in charitable giving, we’ve got to get our hands off the jump ball, so to speak, and let go.”
Singles often have more discretionary income and decision-making autonomy when it comes to giving. This opportunity creates the unique ability to support ministries, pay for Christian education for younger members of your extended family, or fund other kingdom initiatives.
“I think single adults have this untapped power for generosity,” Mary Helen said. “When fully unleashed, we haven’t seen half of what single adults can do to advance the kingdom.”
Looking Forward with Faith
Financial planning as a single person requires balancing preparation with trust in God’s provision―without a safety net. “We have to trust an unknown future to a known God,” Mary Helen said. “We can know God. We don’t know the future.”
“I love thinking of God as the ultimate giver,” Stephanie said. “He shows up so specifically, to faithfully honor people’s faithfulness to Him…He can do anything He wants to at any point in time. And that gives me a lot of encouragement and hope.”
For Christian singles, financial planning becomes an opportunity to steward resources for maximum kingdom impact while embracing the unique flexibility and opportunities that singleness provides, whatever the future may hold.
If you would like to speak with a Blue Trust advisor about your specific financial situation, please reach out to us at 800.987.2987 or email info@bluetrust.com.
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