JW’s Financial Coaching Podcast JW’s Financial Coaching Podcast-A show devoted to answering your personal financial questions and covering current events in personal finance. Giving people a new perspective on their money!

February 10, 2013  
00:0000:00

Highlights of today's show:

  • The "4-1-1 on" series continues with my experience on living on one income
  • Living on one income is not for everybody, but many want to and can't figure out how
  • It is doable . . . if you make the necessary choices
  • Things to consider before making the decision to move to one income
  • For our family it has been a great decision that we don't regret one bit

According to surveys, about 1 out of 5 families in America today live off one income. That is a drop off from about 35% in the late 1970's. Now there is nothing wrong with having a two income family and neither way is better than the other, but I have noticed from working with families over the years that many would like to become a one income household but don't know how they can afford to. On today's show, I share the 4-1-1 on living on one income by sharing how our family has done it for the past three years.

The first thing you have to realize is that living on one income is doable if you make the necessary choices. Just because you don't make six figures doesn't mean you can't survive on one income. But being able to live on one income does mean you have to make it your #1 priority. Those that are able to live on one income make choices in their spending that reflect that.

Second, you also have to realize that a lot of times, living on one income means you have a lot less wiggle room than most. There usually won't be a lot of excess in your budget, therefore you can't afford to be sloppy with your finances. This will force you to be on the same page financially as your spending must align, but it will also improve your marriage as you will communicate better and turn  "his" and "hers" into "ours".

Finally, before you actually make the jump you need to consider three things. First determine what is holding you back. Are your monthly expenses too high? Is there debt you can eliminate or pay down that will lower your monthly commitments? Second, have a fully funded emergency fund. It's important to have this anyway, but especially if you have one income. The worst thing that could happen would be for you to have an emergency right after going down to one income and have no cash in the bank to cover it. Third, test it out. Go ahead and budget on one income and see what that would look like in your life. Test it out for a while and then you can determine if this is something you really want to do.

If you would like any help in determining how your family can make it on one income I would be more than glad to help you.

You can subscribe to future Podcasts through FeedburnerStitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for a while now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

Share | Download(Loading)