Why, it seems like just yesterday, this columnist was relating that marriage was a very good choice for those interested in achieving that elusive dream of independent wealth.
Now comes even more evidence, in the form of a spreadsheet. The folks at Political Calculations, which is associated with the website TownHall.com, have created an easy-to-read little bar chart they've entitled Why the OWS Hates Married, Filing Jointly. It's a title just interesting enough to get the reader to glance at what really is just basic tax info of median incomes by filing status.
The single filers are making a little over $19K. No big surprise, since this includes plenty of teens slinging pizzas for afterschool cash. Once on their own, "Heads of Household" are doing about four thousand dollars better. Again, we wouldn't expect that number to be too high since a lot of these people are recent college grads enjoying their salad days, so to speak.
But here's where it gets intriguing: Married Single Filers are pulling in $31, 463. Married Joint Filers are earning $33, 283, over $1800 more per year. That's a "healthy marriage" bonus of $150 a month! As the presenters of the data put it, "...Social factors have more to do with the perceived rise in income inequality in the United States than do economic factors."
But wait, there's more. Follow their link in that sentence and look at another chart they've entitled "The Real Story Behind 'Rising' U.S. Income Inequality." What the reader will find there are three lines of Gini coefficients, which measure income disparities among individuals, families and households. (Click their links to learn exactly all the gory math on how Gini ratios are calculated.) Individuals are experiencing the least-changed inequalities of income; practically flat, in fact. But the income inequalities of households and families have actually been trending higher.
What does this mean? Social trends are shaping income inequality far more than economic trends. In a bygone age of stable families with mostly single incomes, inequality would be much less. But now we have everything from high-earning two-income families to low-income single-parent families. Hence, greater inequality.
Bottom line: One really good path to independent wealth is to team up with a spouse who shares your financial goals. Then, stay married.
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Elise Cooke and her husband are able to keep saving every month in spite of the three children who tear through the house like termites. Her books on frugality and free newsletter explain how it's done!
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