When we decided to marry, we need to know how to manage our finance, especially when we only have one income. When couples decide to expand their families by having children, it is often their wish that one of the parents stay at home to raise the children. With the ever-increasing cost of living, it’s becoming extremely challenging to raise a family on one income alone- but if you shift your focus from trying to earn more money to reducing your living expenses- it can be done. Here are 18 things that you can do to make it possible to live comfortably on one income:
Find an affordable place to live. You may have to give up your dreams of the huge two story home on several acres of land temporarily, but you can still find a comfortable home within your budget.
Stop using credit cards or pay them off every month. Easier said then done as the temptation to use credit cards can be high when times are tough; but limit your debt to a mortgage payment.
Pay your bills on time. Be sure that you are making the payments on time. This will avoid late fees and unnecessary finance charges.
Don’t finance cars, buy them with cash. If you buy a used car with cash, you can then save some money until you have enough to buy the car you want.
Create an emergency savings account. Many people will tell you to have three months worth of income set aside in case of emergencies.
Make and follow a budget. Decide how your income is to be spent each month, and do everything you possibly can to stick to it.
Holidays and birthday’s come at the same time every year- make it part of your budget to plan for them. Remember you do not have to spend a fortune to give people meaningful and useful gifts.
Use coupons and plan your meals around what is on sale at your local grocery store. Set a monthly food budget and if you run out before the month is over- learn to use what’s left in your house. You will get creative with meals but you’ll learn and be a better meal planner the next month!
Get rid of cable television- do you really need 123 channels? The children can watch the movies you’ve gotten from garage sales or PBS; and you can still keep up with the happenings by watching the news on the local channels.
Don’t make unnecessary trips with your car- plan your errands and outings so you can do more in one trip and save on gas.
If you live in an area where preschool costs money, have a twice weekly playgroup at your home for your preschool aged children. Organize crafts and activities for the children- it will cost less than sending them to the preschool and the results will be almost identical.
Consider having one vehicle for the family instead of two.
Conserve energy- turn off lights, radios, and electronics when not in use. Use rechargeable batteries. Keep your heat set at the lowest comfortable setting (even if it means wearing a sweatshirt and slippers to make it more comfortable!) Replace lightbulbs with energy-saving bulbs.
No one who is raising a family on one income will tell you that it’s easy. It does require effort and planning but for most people- the benefits far outweigh the challenges. You’ll see your children’s first steps, talk their first words, and raise them the way you want to raise them- not to mention avoid paying daycare costs. Sacrifices are necessary to live on one income these days, but the happiness you’ll experience is undeniable.