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.
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