Wondering is it really possible to live on just one income? Yes, of course, you can live well on one income.
No matter why your family wants to go to one income. Whether your spouse or partner wants to take care of your kid or wants to take a break from a 9-5 job you hate and spend more on household things. Maybe she/he wants to study further to achieve the dreams. Or you both might want to live a minimalist lifestyle by getting away from earning more and spending more lifestyle.
So, whatever the reason, if you plan well and commit to it you can happily live on one income. In order to live on one income, you will have to cut down your expenses. That’s the only better way anybody knows. But what most people confuse about is How to do that. Well, this article walks you through 10 amazing tips for living on one income…
10 Tips for Living on One Income
If one of the incomes to your family is stopped you will have to compromise on many things although it is painful, such as cutting down the luxuries and vacations. That would bring a major change to your lifestyle. However, the transition won’t be unrealistic. The not-so-important things you compromise now will lead to a better tomorrow. Making up your mind this way will help you a lead happy life even though your family relies on one income.
Read: How to Make a Million Dollars on an Average Salary?
So, prepare yourself to say NO to the things that are not your priority as of now. Okay, without any further ado, let’s start looking into tips to ease living on one income.
Prepare a Budget
So, the first thing you have to do is to create your budget. Write down your income, expenses, and make a plan to track your expenses. Also, list down if you have any debts and an emergency fund you have already set up. This way, write down each and every single expense and fund you have so that you can decide what to do next.
Setting goals is important when creating a budget as your goals define your journey. Say, if you have to live on one income for a year and have a goal to go for a vacation, you need not save much. Whereas if you already have a house but you should have to set an emergency fund, you will need to compromise and save more.
Read: How much should you save each month
After preparing your budget, do mention your priorities and stick to only spend for those and cut down all other expenses.
Pay Off Debt
Paying interests for debt when living on one income is a hectic task. You will feel more weight on your shoulders. To avoid this, plan to pay off the debt. If you have multiple debts such as a house loan, car loan, and student loan, consider paying off one that has a higher interest. Also, look for ways to get rid of debt. In fact, that should be on top of your priority list.
Set Up Emergency Fund
So, no matter if you have some time to start living on one income or you are already living only on it. It’s never late to start building an emergency fund. Moreover, you don’t know when your car wants a repair or your pet gets sick. Having an emergency fund helps you out in such situations. Also, ensure you have money to cover all your expenses for at least a month or two in your account.
Discuss All Finances with Your Partner
It is important to talk about finances with your partner to avoid any fights in the future. Having financial pressure is quite frightening and frustrating as well which and may lead to big arguments. So, to prevent it, talk about all your income, expenses, funds, goals, and plans with each other. Discussing brings more solutions and makes your journey easier no matter how long it is.
Cut Off Unnecessary Expenses
Now, the hardest part cut down all your unnecessary expenses. Be it a cable connection which you don’t use often, or parties, food orders, vacations, etc. Instead, you can enjoy more time with your family staying home and cooking and eating at home.
Cut down paid subscriptions that are unnecessary and cost you more. Shop mindfully when you go to a grocery store and understand what you necessarily need. Though the costs of gas, work clothes, and other expenses are reduced as one of you stopped going to the office. You need to still think of cutting the expenses discussed here to live well in the next months.
If you are someone who often goes for a vacation, make it to once a year or twice a year. Go for a money date every month instead and have fun.
Downsize your Home
Take a look at your home and think if you really need that large space. If there is unused space in your home means you don’t need it. So, shift to a small flat. Okay, at least temporarily. Or if you own a house you can rent spare rooms on Airbnb to make money. Want to see how to make money by renting out your space? Read here.
Organize a garage sale if you have a lot of unused stuff, furniture, or appliances. You can even rent your garage or garden or backyard on ShareMySpace and make money.
Sell Unused or Unaffordable Items you Have
Declutter your home to make more space and money. Take pictures of unused items and items you can’t maintain with your one income with a high-quality camera. You can sell them easily online for money and cut off some burden. Websites such as Facebook Marketplace, Etsy, eBay let sell stuff and make money. This way you can add some balance to your emergency fund or invest to grow that money.
Read: 10 best investment apps for beginner investors
Adjust your Tax Withholding
Take time and check if you are paying too much for taxes. Adjust your tax withholdings by submitting the W-4 form. Too much paying for government gains you no profit though you get a fat refund check in the year-end. It helps when you pay less every month so that you can manage your monthly expenses smoothly.
Get a Part-time Remote Job
You or your partner can make decent money even you quit the job. There are many works from home jobs and freelance gigs such as virtual assistant, copywriter, pet walker that earn you money. Try doing micro tasks and make money to pay your bills. So that you can manage your monthly expenses with these side income. Thus you have so much to save for your future.
If working for someone is not in your plan, then risk your savings in investments or start a business if you wish.
Read: 10 best stay-at-home mom jobs
Spend Less on Essentials with Cashback Offers
You have cut down all the unnecessary expenses, downsized your home, and sold an extra car, you have done almost everything to save your money. But there’s one thing left. Saving the money you spend on essentials. Okay, relax! You don’t have to cut them but you can save a lot with cashback apps and coupons. Have such cashback apps within your hands and save money on your grocery or any shopping. You can also consider shopping with discounts or during sales such as Black Friday in case you want to buy something expensive.
Key Takeaway: Buy things you can only afford. Do not go for finance or credit cards as they will only end up hurting you with huge weights on your shoulder. So, only purchase if you can pay then and there.
Bottom Line
Living on one income doesn’t need to be sorrowful or unsatisfied. If you can make up your mind and commit to it till the end (of your commitment), you will enjoy the transition. After all, your car just cutting down what you actually don’t need now. So, forget about what you are missing now and focus on your goals. So, that you can reach your financial goals faster even with one income. Not to mention you can even retire early if you plan and execute your budget properly.
