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Living on one income

Living on one income
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When you’re used to living off two salaries, the thought of living on one income can be extremely daunting. However, it is something that many couples face. It could be that you or your partner is pregnant and they need to take time off to have the baby.

There are many reasons why one partner may choose to spend time at home, rather than at work. Whatever your reasons for considering moving down to one income, there are ways you can make it work.

 

Benefits of staying at home

One of the main things you worry about when considering living off one income is the money you will lose. What you don’t often think about is the money you will gain.

Working can actually prove to be more expensive than not working for many families. The costs you don’t often consider include transportation, child care, tax, food, and clothes. The cost of actually getting to and from work can really add up.

Whether you drive or take public transportation, it can be really expensive simply getting to work. Staying home will cut your travel expenses and could save you a fortune.

Living on one income

If you do have children then child care will currently take up a large chunk of your salary. New parents are often surprised by just how expensive it can be. One of the main reasons one parent decides to quit work and stay at home with the children is because they simply can’t afford child care. It costs thousands a year in childcare alone so think about how much you will be saving.

Taxes can also be crippling on your finances. When you’re married, the joint income is taken into account and the more you earn, the more tax will be taken from you. Like with childcare expenses, you could be throwing a lot of money away by being a two working parent household.

Food is one of the expenses you really don’t consider when you’re working. Yes you’ll still need food when you’re at home, but you will make more cost effective meals. When you’re working there’s the temptation to buy lunch every day and treat yourself to takeaway coffees. When you’re at home, you won’t be spending extra money each day for the work treats you often allow yourself. Similarly, clothing is another forgotten expense.

If you have a fairly messy job, you will need to take your uniform home to wash it fairly frequently. Factoring in the cost of buying the uniform and taking care of it, this is further money you will be saving. Every little helps!

Making it work

Now you know how much you’re saving by becoming a one income family, there are ways you can make the transition easier.

Creating a budget is one of the first things you should do. Knowing exactly what you have coming in and what’s going out will help you to spread your finances throughout the month. You should also make a list of everything you are paying out. Are there ways you can cut these costs? Shopping around for cheaper energy suppliers is a good example. Also cutting your grocery budget down will make a big difference.

Living off one income isn’t as unattainable as you might think. Provided you plan ahead and look at as many ways to save money as possible, it could be one of the best, most rewarding things you’ve ever done.

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About Jemma Porter

About Jemma Porter

Jemma Porter is an experienced content creator who has written for a number of online publications. A self-confessed penny pincher; she's often found seeking out the best personal finance deals.

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