The idea of a family that makes ends meet through a single paycheck seems as quaint as an episode of Leave it to Beaver, but folks find ways to make it work. There’s little strategy involved to those who pull in megabucks, but subsisting on modest income takes some work.
PerkStreet provides tips on how to get by when the income stream is singular and the money is tight:
* Save up a colossal emergency fund. This isn’t an option for many, but if shifting to a single income is a calculated, long-term decision, you may want to hold off until you can save an entire year’s worth of living expenses in case the economy decides to squish you.
* Re-evaluate all aspects of your living arrangement. If your rent or mortgage is too high, downsizing may be in order. You’ll need to put everything from your eating choices out to how often you buy new clothes in order to cut your budget to the quick.
* Keep the benefits in mind. Since many couples that opt to go single-income have kids, one major benefit is having one parent be able to stay with the kids all day rather than securing daycare. Another plus is the satisfaction of knowing you can survive on half your earning potential while developing frugal habits that will make it easier to save faster if you move to two incomes. Staying focused on why it is you made your choice can get you through the tough times.
How To Switch To A Single Income Household [PerkStreet]