Taking the jump to being a single income family can be huge, but it can also be hugely rewarding. It can allow for a parent to stay home with the children or for one person to pursue their dreams, even if those dreams won’t bring in much money at all.
When a couple decide to become a family with just one income, however, there is some planning that needs to be done before it happens. This can help ensure the success and allow for any pitfalls that might occur.
Take the Time to Plan Ahead
Planning is an essential part of success. Whether the couple is planning for one partner to pursue a dream or they’re ready to have children and one parent wants to stay at home, it’s important to think about the impact of only having one income is going to have.
How much money will be coming in? How much needs to be paid for bills each month? Is there a way to cut back on any bills so the family will have an easier time living on one income? These are all questions that need to be carefully considered and discussed before any other move is made.
Create a Budget for Spending
Often, living on a single income isn’t going to be easy. The family will need to create a budget for their spending and carefully stick with it each money. Creating a budget can be as detailed as the couple wants, but it’s a good idea to have at least something written down or in mind that goes over all of the monthly expenses, what the income is, and what can be used for extras or to save.
The more detailed the budget is, the easier it may be to follow it, but at least something in mind is going to give the couple the chance to determine if this will work.
Pretend to Be on a Single Income
When there’s time to spare, it’s a good idea to pretend to be on a single income for a period of time. All money from the second income can be put into a savings account for emergencies in the future.
If it’s possible to live on one income without dipping into the emergency savings, the couple will find it’s going to be relatively easy to live off one income. If they cannot manage to do this for a few months, it’s a good idea to reevaluate the budget and see what can be changed to make it work.
Save Up for Emergencies
Before dropping one income, saving for emergencies is going to be essential. Part of this can be done during a trial period where one income is just saved aside and the family pretends to be on one income to see how it works. Once the second income disappears, however, it might not be as easy to save. This should be part of the budget from the beginning to ensure that any emergencies can be handled as they arise.
Being a single income family comes with rewards, but it doesn’t mean it’s easy to do. Take the time to really take in the above information and start planning ahead of time if you’d like for you or your partner to quit working for any reason. A single income can take time and hard work, but it’s definitely possible even in today’s economy.