Living On One Income

With today’s cost of living, it is uncommon to find a family living on one income, except in unique situations when he or she is a high income earner or that the circumstances do not permit two working parents. Unlike the olden days, cost of almost every item has gone up, even the necessary ones, like housing, utilities and foods. Faced with such situations, especially when the economy is down, it is no wonder most families have to survive on at least two incomes.

Having said that, what about families with a single parent? Studies have shown that about 30% of the households are with single parents and that nearly 50% of females are stay-at-home moms. These studies have indirectly implied that it is not impossible living on one income. There are many households which are doing that.

Spend some time doing some calculation and analysis to see if it is worth while for both husband and wife to be at work. Most of the time, you may find that it is not worth both in the monetary and non-monetary sense. In the monetary sense, the cost on transportation, clothing, income tax, child care and others may exceed your monthly income. In the non-monetary sense, the value time that should be spent with your kids and the time to run the household will be all gone.

Living on one income is possible but it is definitely not easy.  You need to adjust yourself and your family to a more frugal lifestyle. A more frugal lifestyle means that you need to cut down on certain consumptions which are just not necessary products for your family and to focus on the necessities for the survival of your family. Soon you will see the results and change the perception of seeing life in a different perspective.

So what areas should you look into before living on one income?

You should begin by clearing debts and in the mean time, avoid incurring any further debts. Stop using any more credit cards to do your transactions. These plastic cards are too convenient to use and they may tempt you to spend more when you are supposed to spend less. Clearing your debts is the best way to save more money.

Focus on spending only on necessary items.  If you are tempted to by a big ticket item that isn’t a necessity, resist that temptation at once. Think about how the money spent on buying that expensive item can actually help you pay down your debt instead,  With that thought, you may not even want to look at it.

If possible, help to bring in extra income without leaving home. A home based business is ideal. You should know best the skills and experiences you have and these should help you to see which area you should be exploring into. It can be baby-sitting, crafting or internet marketing. The main point is to help add on to your household income without incurring any extra cost and without having to leave your house.

Living on one income isn’t easy but when you do it, you will find it worthwhile. Having a frugal lifestyle is a goal and in the process of it, you should have developed a habit of living frugally. Living on one income is a decision that the whole family should be involved, discuss and plan together so that all family members will work towards the same goal