He points to the $250,000 tax-free profit on a home sale for singles, versus $500,000 for married couples. "I have often thought of renting someone for $50,000 to be my wife during the sale," the Salt Lake City man jokes.

People who live alone are solely responsible for paying for housing and bills. They tend to have fewer tax deductions. They pay more for insurance. They have no one else's income to fall back on in case of emergency, and they don't have spouses to help them plan for - or pay for - the future.

Brent Neiser, a financial planner and adviser for the nonprofit National Endowment for Financial Education, says marriage often forces people to dig into details of their finances. "A lot of times, they might not have anybody to talk with about their money. Even if they're living with someone, they may be reluctant to talk to that other person."

That means it's crucial for single people to understand financial and legal issues and to have plans in place before they need them.

"If something happens to me and I'm married, it's likely my spouse is the first in line to help me out. I have immediate family," said John Bird, president of the Albion Financial Group, a financial planning firm.

Single people, of course, don't all fit into a single category. Some are young and have no dependents; some are divorced; others are older, maybe widowed, and dealing with how to handle their estates at the end of their lives.

Even those who don't plan to be single may end up that way. Women, especially, live longer than men and can expect to live as widows for years and should educate themselves about finances.

"If I become single later, I'll need to know about [finances]," Neiser said. "Knowing that could happen anyway, why not do it when you're younger?"

Single parents suffer the biggest financial hits, especially when the breadwinner doesn't end up with custody. Singles with kids have to try extra hard not to end up in debt - because it will be that much harder to get out.

"For a lot of wage rates out there, if you're trying to do it on one income, that's rough. And if you have kids, that's really rough," Bird said.

There are some advantages to staying single. The big one: control. You can decide where your money goes, how much to save for retirement and how detailed your financial plan will be. You also have control over your own credit - something to remember if you do decide to marry.

---

* CHRISTY KARRAS can be reached at singles@sltrib.com or 801-257-8604. Send comments about this story to livingeditor@sltrib.com.

Continued from C1

Managing money now can ensure a stable future - single or not

Spending

Albion Financial Group president, John Bird, says the biggest key to managing money is also the simplest: "It's never too early to get this basic rule of personal finance wired, which is spend less than you earn," Bird said. Especially for those who rely on their own incomes, saving even a little bit each paycheck can make a huge difference in the eventual bottom line.

Compound interest means either savings or debt can increase exponentially over time. And being single means you don't have to worry about your spouse's spending habits.

One big mistake: Using credit cards for emergencies. "Your emergency fund can be money where you've set it aside and get interest on it, or money where you pay a tremendous amount of interest to get it," Bird said.

It's also good to spend wisely and do your homework before you make a purchase - and if someone suggests you ask your spouse before you buy something, remember you can always walk away.

Buying a home

Bird suggests keeping your future plans in mind. If you think you'll be single for a while, don't buy a house that's too big or expensive, and whatever you do, don't use it as your primary investment. Because they're not easily convertible to cash, they make bad financial safety nets. "Buy under circumstances where you're going to be OK whether it goes up in value or not," he said.

Insurance

When it comes to insurance, things are definitely different for singles. Barb Shelley's insurance agent told her that "because I am single, I have to pay higher car and mortgage insurance rates than I would if I were married." This doesn't sit well with her. "I am in my 50s, have a fantastic driving record, fantastic credit and a good job. Why in the world would I have to pay more for my insurance? He said I was a bigger risk due to being single but didn't explain. Without more information, it sure looks unfair and discriminatory."

Single people do spend more for some kinds of insurance. But they can sometimes carry less insurance than married people, especially if they have no children. Bird says they must protect their incomes by getting disability insurance in case they can't work. They should also have life insurance if they are caring for someone, whether or not the dependents are children. Those without dependents can often safely go without life insurance.1

Investing

Advisers usually suggest putting away liquid savings amounting to three to six months' living expenses. An emergency fund is even more important for single people, who don't have a spouse's income to fall back on if they lose their jobs.

While those funds should be kept in a safe, easily accessible place, that doesn't hold true for all your investments. Neiser says overall, the most important strategy is to diversify investments, keeping them in line with your age, goals and circumstances. He says the biggest mistake some people make is to invest their money in the industry they work in, or even in the company they work for. If you do that, and your company takes a dive, you could lose both salary and investment income at the same time.

Retirement

Single people can't rely on their spouses' pensions or retirement plans, and no one can rely on Social Security. Neiser suggests putting off retirement for a few years after you're eligible. This both gives your investments more time to grow and increases the amount you'll get in Social Security payments. And while it's hard to think about retirement if you're young and single, starting to save in your 20s will add up much faster than if you start later.

* For more stories in our occasional series about being single in Utah, go to www.sltrib.com/entertainment.

One advantage to staying single?

Sole control over how money is spent.