In this episode, Dave and Hayden dive into whether it’s easier to achieve FI as a single or as a couple. They explore the potential pros and cons of each path, sharing insights and tips on maximising your financial journey. Read on for a conversation recap, or listen to the full episode at the end of the article.

When it comes to Financial Independence (FI), there’s often a debate about whether it's easier to achieve as a single person or as part of a couple. Most of us have an idea already, and more often than not, we hear that couples have an edge. But is that always the case? As it turns out, there are benefits and drawbacks for both singles and couples on their FI journey.

The income and expense factor

From the outset, it seems like couples have a financial advantage, especially when it comes to sharing costs. As Hayden points out: “Two people can sleep in a one-bedroom apartment, and two people can sleep and work in a two-bedroom apartment. You can share more.”

The financial efficiency of sharing living expenses, groceries, and utilities is undeniable. Hayden adds that “two incomes are better than one… and in the Australian tax system, two people earning $100,000 each will pocket more than one person earning $200,000.”

But is it always that straightforward? Not necessarily. Dave highlights that while couples might share costs, they don’t necessarily align on spending and saving goals.

“A two-person household is not going to be a replica of each other,” he says. “It’s easy to imagine one person being super motivated about Financial Independence and very keen to be frugal and invest. But for the second person in that couple, there's nothing to suggest that they are going to be the same.”

This disparity can lead to more spending than initially planned, with couples needing to compromise to keep both parties happy.

Interestingly, the differences often show up on the spending side more than the income side.

“Even though those dollar figures are the same,” says Dave, “when it comes to being able to save and invest, the difference compounds over time because of the escalating magnification of when you’re investing money over a long period.”

For singles, there’s no compromise to consider. They have full control over their spending and saving habits, allowing them to make independent decisions about how frugal they want to be. As Dave points out, singles can be more flexible with their expenses, sharing housing with flatmates, and keeping their needs minimal without the “baggage” of another person’s spending habits.

Investing as a couple vs as a single

The difference between singles and couples also plays out in how they invest.

“If you’re in a relationship, you do have a lot of interesting ways you can shift investments around,” Hayden explains.

For instance, if one partner earns significantly less, he says it could make sense to invest in their name for tax efficiency. But this requires a high level of trust.

“That relies on an exceptional degree of trust,” Hayden acknowledges, as the wrong decision or a relationship breakdown could lead to financial losses.

Couples, Hayden suggests, have the advantage of combining resources to buy property sooner. However, Dave warns that couples need to be cautious when making such significant financial commitments, especially if the relationship isn’t solid.

"I definitely wouldn't go into asset ownership, or especially a property where there's very large expenses associated with it, with someone that you're really not super confident you're going to be with for longer than five years," he says.

Singles, on the other hand, have total control over their investment strategy. They don’t have to navigate differing risk tolerances , which can be a sticking point for many couples.

"You might have one spouse who wants to invest in shares, and the other one wants to invest in property. Or one might very conservative, or wants to keep lots of cash, or doesn't want to invest at all because they're not quite comfortable with it yet," Dave says.

A single investor can make quick decisions, shift strategies, and adapt without needing to check in with anyone else. But the downside is that they have less borrowing power, which can make property investment trickier without the dual incomes a couple might have.

The psychological element of FI

Achieving FI isn’t just about crunching numbers; the psychological aspect plays a massive role. Some people thrive on doing things alone, while others find it difficult to stay motivated without a partner to share the journey.

"If you're someone who struggles to be self-motivated, you really need positive reinforcement from people around you... trying to do things alone can be really hard," Hayden says. Having someone to lean on, whether for support or accountability, can make the FI journey smoother for couples.

But it’s not all rosy. As Dave points out, relationships often come with compromises.

“You’ve got two people to keep happy,” he says, which means the path to FI can be slower if your partner doesn’t share your enthusiasm for frugality and long-term investing .

“It is somewhat common in the Financial Independence community that one spouse can be more motivated than the other,” he says, which creates tension.

For singles, loneliness or lack of external motivation can pose challenges. Online communities, meetups, or even like-minded friends can provide the encouragement that singles need.

As Dave shares: "You can meet like-minded people online and chat about things you're passionate about. But you can also meet the same people in real life as well.”

This sense of community can help singles stay focused and engaged.

Dealing with setbacks

Another significant difference between singles and couples is how they handle setbacks. A couple may be able to better withstand financial hurdles, like losing a job, because of their dual-income structure.

“If one person loses a job… it's pretty easy to imagine that they can they can get by on that one income for a while,” Dave notes.

Singles don’t have this buffer, so it’s worth thinking about creating a solid emergency fund to weather any financial storms.

That said, couples can also face significant financial challenges, especially if they separate or divorce. Hayden shares the story of a friend who had to sell her house at a loss following a breakup just weeks before her wedding.

"Divorce or breakup can be very expensive for people," Hayden warns, reminding listeners that the financial risk of tying your finances to someone else is real.

Final tips for couples and singles

For couples, the key is communication.

"I do believe that, for a typical person, if you just talk about it, break it down – just keep chatting, even if it takes three hours – you get to a point typically," Hayden says.

He recommends testing each other’s financial values by going out, ordering dinner, and discussing why you make certain choices.

Hayden advises singles not to get too comfortable going it alone.

"Sometimes that can make you just go down the wrong path because you're just not being challenged enough," he explains. He encourages singles to expose themselves to different perspectives to avoid missing opportunities for growth.

Dave’s final tip for singles is to “make the most of your independence and your control and flexibility that you have that certain couples might not have.”

For couples, he encourages staying diligent with their goals and not allowing comfort to derail them from reaching FI.

There’s no one-size-fits-all answer

Ultimately, whether FI is easier for singles or couples depends on the individuals involved. Each person’s situation is unique, and there are pros and cons to both paths. The key takeaway is that Financial Independence isn’t just about the numbers; it’s also about your mindset, your relationships, and your willingness to adapt and grow along the way. Whether single or in a couple, success on the FI journey comes down to understanding yourself – and the people around you.

We're always keen to hear your thoughts and topic suggestions, so hit us up at hello@aussiefirepod.com . Head over to Pearler for resources, calculators, and community insights that complement what we chat about on the show.

Until next time, keep dreaming big and living on your terms. Catch you on the next one, and happy long-term investing!

Dave and Hayden