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Getting ahead financially when you're single can feel like climbing a mountain with no rope. But whether by choice or circumstance, flying solo doesn’t have to mean falling behind. In fact, there are unique advantages to singlehood when it comes to building wealth—if you know how to leverage them.
Makayla and Jess dive into the strategies that can help single Kiwis move forward financially. From buying a home on one income to negotiating your salary and maximising your income, this conversation proves that learning how to get ahead financially when you're single isn’t just about sacrifice—it’s about smart planning.
Buying a Home on One Income
One of the biggest financial goals for many in their 20s and 30s is home ownership. And while buying a home on a single income can feel daunting, it’s far from impossible. Lighthouse Financial has worked with countless single clients who’ve successfully stepped onto the property ladder. It may involve some sacrifice, but it doesn’t mean settling for less—it just means thinking smart, not big.
Start by remembering: your first home isn’t your forever home. The average person lives in their first property for about seven years. That means buying something modest—a one or two-bedroom townhouse or unit—can be a smart move. Shared living arrangements like flatmates or boarders can also help ease cash flow while still allowing you to build equity.
Consider Non-Traditional Property Paths
If home ownership where you live feels out of reach, consider a stepping-stone approach. That might mean investing in a more affordable region, renting it out, and staying put where you are. The goal is to get on the ladder—not necessarily to live in the first property you buy.
It’s also essential to challenge the mindset that you’re too far off. Many singles are closer than they think. Talking to a mortgage adviser can help you understand your current position and the steps you need to take next.
Don’t forget about options like buying a new build with as little as a 10% deposit. Lenders like ANZ have reintroduced 90% LVR loans for new builds, which can make entry easier, especially when paired with a healthy KiwiSaver balance.
Budgeting and Control
Being single gives you complete control over your money. You don’t need to negotiate financial decisions with anyone else, which can actually accelerate your progress. Whether it’s eating ramen for a year or flatting with seven roommates in a mansion, the choices you make are entirely yours—and so are the benefits.
Delaying financial planning in the hope that a partner will make it easier is a trap. Independence should be the motivator. With the right goals and support, many single people can achieve milestones like home ownership earlier than they expect.
Maximising Your Income
Your income is your biggest asset—so make sure you’re getting the most out of it. For salaried workers, that means negotiating regularly. Employers expect it. In 2024, over 40% of Kiwi employees didn’t negotiate a salary increase, even though inflation meant their existing income lost value.
If your workplace isn’t structured for negotiations, consider switching jobs, or at least researching salary benchmarks through platforms like Glassdoor or PayScale. You might find you’re worth more than you think.
Protecting Your Income
When you’re a single earner, there’s no safety net—so protecting your income is crucial. ACC will cover you in the event of an accident, but not illness or disability. Income protection insurance ensures you’re covered no matter what.
And here’s a bonus for singles: you likely don’t need life insurance. If no one is financially dependent on you, that’s one premium you can skip—for now.
Budgeting as a One-Person Household
Living costs often feel higher when you’re alone. Grocery bills, rent, and holidays aren’t split down the middle. But you can adapt by planning ahead and making strategic sacrifices. Whether it’s moving back home temporarily or embracing flatting for longer, each decision gets you closer to your goal.
Key Takeaways
Home ownership is possible on a single income, especially with the right mindset and support.
Start small, not big—townhouses and attached units can be smart first homes.
Consider investing in property you don’t live into get on the ladder sooner.
Budgeting is simpler when you’re in control, and small lifestyle sacrifices can go a long way.
Negotiating your salaryis essential to keeping pace with inflation—don’t skip it.
Use tools like Glassdoor and PayScaleto benchmark your worth.
Protect your income with insurance, especially since there’s no one else to rely on.
Skip life insuranceif you’re single and have no financial dependents.
Surround yourself with the right support—financial advisers, friends, and flatmates can all make the journey easier.
Next Steps:
You don’t have to do it alone. At Lighthouse Financial, we help everyday Kiwis—including solo earners—build clear, personalised financial plans. Whether you’re saving for a home, investing, or just looking for a plan that works for you, we’ve got your back.
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
