Financial Planning For DINK Couples

DINK is an acronym for “Dual income and No Kids “couple or family. As more and more millennials and gen-xers grow up, they are deciding to wait on having kids or not have any kids at all. This is in stark contrast to Prior Generations where people would have kids in their very early twenties.

Staying DINK in the initial years of marriage allows for creating and accumulating financial assets to take care of the needs later. One of the primary reasons couples are choosing to wait or completely won’t go having children is financial.

The starting point of financial planning for DINKs will be identifying the purposes for which money would be needed. Accordingly, an investment plan needs to be formulated so that there is enough liquidity during an hour of need. Some of the financial planning tips for DINKs would include the following:

Secure Yourself

One of the major drawbacks for the DINK couple is their tendency of overspending.  They generally have high personal disposable income and less inclination towards savings.

A survey by the Associated Chamber of Commerce & Industry of India on changing consumption patterns in a city such as Delhi found that nearly 75% of DINK couples with an annual family income of about Rs 6 lakh-8 lakh of per annum spend some Rs 15,000-20,000 every month on entertainment, shopping, fitness centres, eating out and branded wear.

An emergency fund can come in handy in such situations. DINKs should try and keep a higher emergency corpus as it’s easier for them to do so given the higher disposable income.


On average, DINKS spend more on larger houses and nicer cars, they are very dependent on each other to afford their lifestyle. What if something happens to one of them? A term plan that’s at least 10 times your annual income is a broad thumb rule to keep in mind. In any case, making sure that big-ticket debts such as a home loan is insured is important.

Retirement Planning

Being in the high-income brackets and with few financial commitments, it is easy to ignore the need to plan for the sunset years. It is even direr when you don’t have kids and don’t plan to have any because you will have fewer people around you who can take care of you when you grow old.

With double income, you may have twice the temptation to live a lavish life. A little restraint and discipline can help you save for the future as well as maintain the standard of living you like. It is thus important to have a good retirement plan in place when vibrant and working.

Create a Larger Investment Corpus

DINKS have more investible funds and more time to establish a career. They can consider increasing their income by making investments and working more. Investing the extra income and savings can help them accumulate income and achieve financial freedom.

DINK couples have an advantage as their savings pie is often much larger than that of a family with kids in the same age bracket. But for all the advantages, there are as many financial pitfalls as possible to watch out for. Like any other lifestyle choice, the DINK lifestyle has its Pros and Cons.

Pros Cons
More investible funds Potential to overspend
Fewer Financial responsibilities Wrong investments
More retirement savings Lack of Long-term Vision

When done right, being a DINK can be incredibly financially rewarding. However, when done wrong, it’s can just be as financially devastating. Are you a dual income no kids couple ready to save and secure your financial future? What works best for you? We would love to hear in the comments below.

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