The joy of being a parent is priceless, but it does come with a price tag. Whether you decide to become a single income family, or are forced to rely on one income due to a job loss or injury, it is beneficial to have a plan in the works. Here are some tips to getting a plan in place to prepare for this life-changing event.
Get a Clear Picture of Your Expenses
It sounds simple, but it is so important to really know how much money is coming in and leaving your household. A great solution is to use an online banking option, and using online bill pay. This will give you a clear picture on what you are spending.
If you aren’t comfortable with online banking and bill pay, “old-school” methods work just fine. A piece of paper, pencil and calculator are great tools for keeping up with your finances. It is just important to find a system that works and one that you will stick to.
Sacrifice and Reduce
You knew that this tip had to be a part of this topic; there has to be some cut backs on what you spend. Living on a single income requires dedication and communication between spouses. Really think about what you can live with and without, and plan special treats. It always feels better when there is something to look forward to.
For example, if you are used to buying a latte at your local coffee shop everyday, you can change that habit and save money by making coffee at home. A special treat may be that you buy a latte every Friday. It is a sacrifice and reduction of spending, but just think about how special that Friday latte will be!
Make the Change Slowly
If at all possible, make the spending changes slowly. This is obviously not an option if job losses occurred, but if you can control it, change it slowly. Instead of spending both pay checks down to the last penny, start putting away 5% of both incomes. Each month, try for more until you are putting one paycheck away per month.
No matter what your reasons are for becoming a single income family, the steps to get there can be challenging. A plan, communication and compassion are vital to making it a reality. In addition, pack your patience because it is a life-changing event.
We became a single-income family after I quit my job after delivering our first child. It helped that I breastfed because we really got to save a lot of money (plus, I allowed myself to be tied down to the house, thus, less expenses for impulsive buys as well).
It is rather hard adjusting to new spending habits… but it also helped that I found a way to earn extra from home
This is a really difficult decision as this will result to a lot of changes and adjustments…
However as mother who will be able to spend more time with the kids, a wife who will be able to attend to the husband’s need, it is more than rewarding.