Depending on your lifestyle, your money management plan will need to incorporate a wide variety of expenses that accommodates your situation. A Nuclear Family for example would have a completely different plan then a SINK (Single Income No Kids).
From cocktail parties to family dinners, debates regarding which lifestyle is optimal are usually never ending with conversations turning into arguments. A neutral approach to this debate would be to state that your lifestyle is almost always a choice and it doesn’t matter which lifestyle you choose as long as you have a solid plan (which addresses all of your goals and needs).
If you had a choice today, which would you choose?
Before you choose, let’s review the definitions of each term. The following is a list of common lifestyle acronyms and terms defined:
DINKS - Double Income No Kids
- Married, common law, or even exclusive relationships living together with no children.
- Has the most potential of generating wealth, because both individuals can share everyday expenses and they do not have the responsibility of raising a family.
There are also subcategories of DINKS including:
DINKWAD - Double Income No Kids With a Dog (Or Domesticated Animal for those who have a cat(s))
- Same as above, except you are both responsible for another living being.
DINKY - Double Income No Kids Yet
- Financial goals may differ from DINKS as the potential of having children may alter their lifestyle to accommodate the start of a new family (i.e. buying a house, change of social scenes, upgrading their vehicle, etc.) in the near future.
- To be a DINKY, individuals do not have to know when they are planning to have their first child, as long as there is a unanimous to have children one day.
SINK - Single Income No Kids
- An individual or a couple (married, common law, etc.) who is generating a single income.
- There are various reasons why individuals are SINK and it may be by choice or force.
- SINK can also be associated with divorcees/ widowers who have not remarried who are raising their children on their own.
- Common for couples and a growing trend for single individuals would be to eventually consider SINKY (Single Income No Kids Yet)
Nuclear Family - Two parents with children living together
- The traditional definition of a Nuclear Family would include children living with their biological mother and father under one roof.
- Postmodern versions of the Nuclear family include same sex relationships where the roles of Father and Mother are assigned raising their children under one roof.
- Also divorced individuals with children remarrying raising their children from previous marriages under one roof.
- The Nuclear Family does not have to have both parents generating an income.
SITCOM - Single Income, Two Children, Outrageous Mortgage
- Unfortunately a commonly used acronym in today’s unstable economy that was once used as a joke.
- The pressure of finding a home in an unaffordable housing market, with the cost of raising a family rising, and job stability a rarity makes for a prime time sitcom full of action and drama.
- SITCOM can be the result of two parents who were once working and now have to finance their lifestyle on one income. Therefore, it might be difficult to afford the bare necessities when it was built around two incomes.
- Includes individuals (single or couple) who are taking care of their parent(s), as well as extended families where numerous family units are living under one roof.
- Another category could include an individual who has a relative that is financially dependent on that individual (i.e. a sibling who is physically or mentally handicap).
Each of these categories has their pros and cons. What may work for one individual might be unbearable for another. What may be your situation today can easily change tomorrow.
Do you have a plan that is flexible that meets the potential demands of a change in lifestyle?
How do you feel about where you are now?
Rafael loves to travel and devotes his time working with individuals making the leap from employee to employer. As CEO of Reis Financial Solutions Inc, he provides management accounting services for small to medium sized businesses, balancing wealth strategies that are favorable for both the business owners and the business itself. Twitter @ReisFinancial