Statistics show that the number of singles has been increasing across the world, even in culturally diverse countries. This means that more Millenials and Gen Z are choosing to stay single for longer. 

By necessity, most couples are forced to think through their finances and come up with a plan that works for both parties. However, singles don’t often plan their finances, leaving them vulnerable in case they lose their current source of income. If you are single but would like to improve your financial health, here are a few tips to get you started: 

1. Invest aggressively

Generally, single people have fewer financial obligations than those with spouses and families. An aggressive investment strategy may work well for you if you are single, since you will likely have a higher disposable income and more tolerance for risk. Prefer investments that have a high yield or offer you compounding growth. 

2. Build emergency savings

Many couples have the benefit of two incomes. Thus, in case one partner loses his or her earnings, the other spouse can take care of the expenses in the meantime. Single folk, on the other hand, do not have this luxury. It therefore becomes all the more crucial to build up your emergency savings if you are single. Aim for a cushion of about six months so that unexpected expenses can be paid off without dipping into your retirement savings or incurring any debt. 

3. Explore insurance options

Getting insurance protects you in case of an unforeseen event. Unless you have dependents, life insurance may not be necessary for you. Instead, consider options such as medical and disability insurance. If you are supporting children of school going age, an education cover for them should also be on your list. 

4. Get your estate and affairs in order.

As an adult without a partner, there is no default person who can legally make health and financial decisions for you in case something happens to you. Pick someone you trust to fill this position, and ensure that the appointee knows what decisions you would want to be made in different scenarios. A health care proxy, an advance health care directive, and a durable power of attorney for financial and legal matters are critical documents to consider. If you are single with children under the age of 18, you should also appoint a guardian to take care of them should anything happen to you.

5. Write a will

In all likelihood, most of your assets are in your name if you are single. What will  happen to them in case of your death? Without an obvious heir, it is advisable to create a will, apportioning your assets the way you would prefer.

In conclusion, everyone should plan their finances regardless of their relationship status. Single people, especially, should strive to have their financial ducks in a row as early as possible.  This way, even if their status changes, they already have financial goals that they are working towards. 

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