Living on one income sounds hard at first. It totally rocks and helps your life in so many ways. Yet it’s doable. As a couple, living on one income helps in a variety of ways. It’s about changing the way of thinking and living and spending.
Personally, I’ve known quite a few couples who desired to make the change to become one income family. Some desired to go from dual incomes to one spouse staying home. Others have not decided to quit their jobs but to live as though only one income was in the home. The reasons couples make the plunge range from one parent staying home to care for the children, desire to homeschool children, on a savings blitz or maybe even an illness of one of partners or a family member. Whatever the reason, you can do it.
You can survive and thrive as a one income family. The changes in your lives, finances and decision you make will be invaluable.
What does it take to live on one income?
It takes planning
You must be content with living with less
It takes budgeting
Transitioning to one income takes a commitment
It takes hard work and determination
Ready, Set, Go Live on One income
If you believe that you are ready for it, then go for it. Here is how it can be done:
- Ask yourselves why and then pick a date to start living on one income
- Create a budget based on just one income. This Easy Moneyplanner will help you create a budget with ease.
- Building up your savings. The blog post on putting your savings on autopilot is a good place to start and learn more. Put Your Savings on Autopilot has a wealth of information. Read this article to start but the personal finance series has many articles to assist you.
- Start reducing or cutting costs early where possible. Try cutting bck on small things first like the grocery bill. Couponing is an easy way to start. Learn how to cut your grocery bill by up to 90% by doing this crazy thing called Power Couponing.
- Pay down any debt you can reasonably do so to prepare for the change. This is a good read if you are looking for ways to pay down debt to get started on your quest for saving and thriving. A Step by Step Guide for Eliminating debt is a life saver!
In the end….
It wasn’t easy but my husband and I did it. We’ve always been a dual income family. Our main goal was to save money. We could save to buy a home and build a sizable nest egg. When we were a year into doing it I thought heck why don’t I just quit my job, maybe start a business, take care of my family, and continue to live as we have been doing. It was easier than we thought. The change in our mindset was pivotal.
Prior to our transition, my husband made about $120k and I made as an accountant about $80k a year. We didn’t consider ourselves wealthy. We weren’t extravagant spenders but one day we just looked at each other and said where in heck does our money go. We made the choice that day to survive on just one income: my husbands. I continued to work for that year while contributing 80% of my salary to my 401k. It created that new mindset for our family.
We lived below our means. We budgeted. It wasn’t easy but we cut expenses. Yes, we cooked at home more and quite healthy meals I might add. We had to rethink our spending. Our family couldn’t have made a wiser choice. We feel wiser as a family unit. We feel comfortable because our retirement savings grew right before our eyes with minimal changes. We are happy that we made the transition to one income family.
What do YOU think? Has your family tried to live on one income? Let us know what you think by commenting as we’d love to hear from you.