Why You Should Marry for Money

Marry for money and you will be happy for the rest of your life!

Nope, not so much.

I had a professor of physical chemistry in college that had 2 rules in life. The purpose of these rules was not to make society look like a dump, but to encourage people to be outside the rules.

Rule #1:  People are dumb

When it comes to money people are generally pretty dumb. They make it, they spend it all, and then wonder where it all went. But that is not the point of the post today. Rule #2 pertains to today’s post.

Rule #2:  Marry for money

Most everyone I know would be appalled to hear me say that you should marry for money. Your mind is initially drawn to the idea that marry for money, means to marry a rich guy/girl so you never have to work a day in your life.

Marry Rich

That would be the dream life, wouldn’t it? Never have to work a day in your life and live in the lap of luxury. Everything is within your financial means. Want a yacht? No problem.

The goal of financial independence is to leave work forever. If marrying rich can make it happen, why not?

Marriage is about so much more than money. We must have love first and foremost, or it will not work out. Divorce is much more expensive than marriage, so you have to be sure.

If you truly do fall in love with a rich guy/girl and get married. Congratulations, you are living out every kid’s fantasy and money will likely never be an issue.

If you are like the rest of us, then you will have to find another way. Read on to find out.

Marry for Money

When I say marry for money, I am referring to 2 different aspects of your financial life that marriage can really help out on. The first aspect is taxes and the second aspect is savings potential.

Tax Benefits of Marriage

I have many friends and relatives that were together for 10+ years before finally getting married. I also have friends that have been together for what seems like forever and will never get married because they don’t feel the pull to make things “official.”

From a financial standpoint, if you are in love and are going to be together forever, then it only makes sense to go ahead and get married. Taxes are highly favorable for those of us that are married filing jointly. Take a look at the table below which represents the tax brackets for 2017 and you can see the tax advantage of being married.

RateSingleMarried Filing Joint
10%$0$0
15%$9,325$18,650
25%$37,950$75,900
28%$91,900$153,100
33%$191,650$233,350
35%$416,700$416,700
39.6%$418,400$470,700

Basically, if you make a reasonable middle class income between $37,950 up to an upper class income of $416,700 you will have significant tax savings from being married.

Example $80,000

Let’s take an example couple that each makes $40,000 of taxable income (this is the amount after all deductions). Each individual would be in the 25% tax bracket and would be paying 25% on their earnings above $37,950. Their tax liability for the year would be $7137.50 each for a total tax liability of $14,275.

Now, if they got married sometime during 2017 or before, they would be able to file their taxes as married filing jointly. Their total taxable income of $80,000 would remain the same, however, their total tax liability to the federal government would come out to be $13,875. This couple would have tax savings for 2017 of $400.

$400 is not a significant saving but helps nonetheless. The big difference comes into play if we have a single income couple or one that is not equally weighted. If the $80,000 was all made by one person, then the single tax liability would be $17,137.50, making a marriage savings of $3,262.50 annually.

Example $40,000

$80,000 total taxable income seems a bit high, so let’s look at $40,000 taxable income. This is the level that I come in at after all of my pre-tax investments. If split evenly, $20,000 per person, then the tax is $5,067.50 and the tax liability of the married filing jointly couple is the same. However, if it is a single income family, the tax liability of filing separately is $7,137.50 for a tax savings of $2,090 annually.

Just imagine what you could do with an extra 2 grand every year. All you have to do is get married to the love of your life and money will magically become yours to keep.

Savings Benefit of Marriage

The second benefit of getting married is the possibility for greater savings. Becoming married means the merging of finances for the 2 of you. Sometimes this means combining all accounts and making them all joint, as I did. Others take the route of maintaining separate accounts that allow each spouse to spend out of their own accounts without supervision from the other.

Communication about money in marriage is of utmost importance. Click To Tweet

When you communicate with each other you can either jive together and find new ways to save money or you can butt heads together and spend it all away. The best possible outcome here is that you both have a sense of frugality and support each other to bring about better spending and saving habits.

If you manage to find someone that is also striving to retire early, or follows you to China as an expat wife, then you are set up for financial success. The 2 of you can work together to save towards the goal of financial independence. Both can work on generating a side income. If one spouse works a high paying job, the other can stay at home and work to begin building a side income to relieve the other from the obligation of working. When the 2 of you really join together to pursue the goal of leaving the workforce, you can speed up your journey significantly.

In Conclusion

Marrying for money is a great idea! The traditional sense of the statement is probably not the best idea, but when you truly love someone and you have the mutual goal of financial independence, you can boost each other and bring your freedom date closer. Your savings can compound from the many benefits of marrying for the money.

Did you marry for money? I didn’t but it seems to have worked out that way.

 

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