You can run a successful household on one income despite what everyone may tell you. There are a few rules that you can follow to make it easier, but it can be done. Here is my advice to anyone who is considering going from two incomes down to one.
Manage the largest expenses first
For most people housing is the biggest expense that they have. If the recession has taught us anything, it is that housing expenses can bankrupt you. You want to be especially careful when you only have one income. Chose a home that you can afford on one income. It is amazing how easy it is to not do this.
Pay for everything right away
Keep debt under control by not buying anything that you can’t immediately pay for. Even if you use credit cards for convenience, make sure that you already have the money to cover this expense. Once you get used to this way of spending, you’ll quickly realize the things that you can live without.
Use your time to make the one income stretch
If one person is not working, that family member should use whatever time he or she has to make the income stretch. Taking 30 minutes to clip coupons and match them to sales is time well spent, especially if you can save $50 doing it. Make minor repairs to clothing by hand, cook from scratch, reuse what you can, shop yard sales and put effort into finding ways to save money. As motivation, you can keep track of all of the money that is saved and consider it to be that second income.
Don’t try to keep up
If you try to keep up with your old life on two incomes or the life of your two-income neighbors then you are setting yourself up to fail. A one income household offers a lot of benefits over two incomes. While my kids may not have the latest video game system or a cell phone like their friends do (don’t get me started on cell phones for 3rd graders), but they do have the benefit of coming home straight from school, having home made pizza upon request, going on regular summer outings, and more. Enjoy the differences.