Moving in with your partner is perhaps one of life’s greatest ‘big steps’, especially for young people doing it for the first time.
Many people tout it as being the answer to a number of financial problems, though some might feel living with a partner is detrimental for the relationship.
Whatever your current situation, here are a few financial benefits of living together.
Day to day bills
One of the biggest benefits you will no doubt notice straight away is that your bills are effectively cut in half, compared to someone living by themselves. Rent payments are perhaps the first to be affected, as you will combine your earnings to pay this bill. Even if you live with a group of other non-couples, introducing another person into an already-occupied space will reduce the rent for all parties.
Forbes looked at the monthly expenses of three groups in the States – a single, a couple, and a couple with kids. The couples only had to put 9.3% of their monthly income to rent, whereas the single had to fork out 23%.
Here is a quick snapshot of two other statistics:
- Food bills: Couples used 5.6% of their monthly income on food, while the single person used 8.3%.
- Telephone bill: Having a telephone, and presumably internet, costs couples 1.2% of their monthly income, compared to 2.8% for a single.
In total? Per month, couples were using 16.1% of their income for these bills, and the single person was using 34.1%.
Having a credit card can be a Godsend in emergency financial situations, or if you are planning on going overseas for a time and need the back up.
That being said, as a couple living together, it may be worthwhile considering having a joint credit card account, rather than two separate ones. Joining forces can sometimes be finicky to organise if you live apart, but living together can make discussing budgets and financial plans easier.
There are more benefits than just having a joint financial plan, though. For example, with the Virgin Australia Velocity High Flyer Card, you could earn Velocity Rewards Points at a faster rate by having two cardholders on the same account. Though you will share the same limit, you will have separate cards and be able to earn points independently of each other, meaning they accrue faster.
There are many credit cards on the market, so you may want to take a look and compare to see if the Virgin Money Credit Cards are right for you.
For soon-to-be first time home buyers, saving for the deposit is a crucial step.
When you apply for a home loan, the lender of your choice will look at your capacity to meet repayments. This capacity is affected by your income, as well as expenses, debts and regular bills. The higher the chance you’ll make repayments, the better your loan could be.
Saving by yourself, plus the cost of your month-to-month bills, can be hard. However, as a couple with reduced bill payments, you might find it easier to put aside part of your paycheck each cycle to go towards that all-important deposit. If you can show you are capable of saving, as well as stable enough to be on top of bills with a little extra, the chances of you receiving the loan you need for that perfect house could be greatly increased.
Are you thinking about moving in with a partner?