Become A Single Income Family
How You Can Become a Single Income Family
Deciding to become a single income family is not one to be taken lightly. If both adults were working, there will be a dramatic drop in income and could have a noticeable effect on finances. Many couples decide to become a single income family with the arrival of children. With proper planning, a single income household can be just as successful as a dual income household.
The first thing to figure out is your debt to income ratio and to see if having one income is feasible at this point. The next aspect is to consider if having one income will be enough to cover any future emergencies that may happen.
Having a monthly budget and sticking to it will be the key to the success of a single income family household. Extra, non-required spending may have to be limited. Eating out and shopping may not be a regular part of the budget now.
There are some easy ways to cut back on expenses. Buying in bulk, following the sales, using store discounts and buying online are great ways to save money. Another useful tip is to buy competitor brands. Off brands often have the same ingredients as the expensive brand names without the high price tag.
If only one adult is driving to work, it may be possible to sell the other vehicle. This will not only give you some money to put into your savings, but it will cut down on the monthly expenses of a car payment, gas, maintenance and insurance payments.
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Utility costs continue to increase and this is a big consideration for single income households. Here are some money-saving utility tips:
- Turning off lights when not in use.
- Unplug electronics from the wall when not in use.
- Shut down computers when not being used.
- Replace gaskets in leaky faucets.
- Install water saving faucets.
- Only run the washer and dishwasher when the loads are full.
- Use your washer on cold or warm cycles only.
- Hang clothes to dry instead of using the dryer when possible.
- Use natural lighting instead of turning on lights during the day.
- LED lighting uses less energy and last longer than normal incandescent.
- Turn off lights when not in use.
- Ceiling fans are a great way to keep your house cool by circulating air properly.
- Use solar lighting instead of wired lighting for outdoor use.
- Check window seals to make sure undesirable temperatures are not leaking into your home.
If a small child was in daycare, this expense can be avoided with one parent being home. Childcare is one of the biggest reasons parents decide to become single income. Child care costs can be extremely taxing on household finances. Usually one parent does not make enough after the child care expense to warrant continuing to work. It is usually enlightening to sit down and figure out the expenses associated with working. Sometimes the income is not enough compared to the debt of working.
Single income households generally allow for more family time and can bring the family closer together. Time with your family should never be wasted. If your budget allows for a single income family, the richness this brings into your life will be priceless.