Many families long to have one parent at home with the kids while the other works outside the home. These Tips For Becoming A One Income Household are a great start for your family to make this transition. A one income household seems out of reach for many people, but in reality the right work and attitude can make it possible for many. Unfortunately, some instances mean it is not possible at this time, but that doesn’t mean you can’t at some point in the future become the one income household you long for.
Tips For Becoming A One Income Household
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1. Downsize everything to free up money in your budget. This is an obvious, but often overlooked concept for becoming a one income household. Downsize goes for everything from your grocery budget to your home itself. Start with your budget and work your way down. Some things you may want to consider downsizing are listed below.
2. Do without. Sometimes you just have to make sacrifices in order to live on one income.
3. Sell your home if you can and buy a less expensive home or rent if that makes sense for your financial situation.
4. If you rent, move to a smaller/cheaper place or maybe one that includes utilities in your rent.
5. Change your vehicle insurance to a lower rate policy (liability only for vehicles that have been paid for, or change to a different company if a lower rate is possible).
6. Eliminate or limit extra curricular activities that are costly (limit kids to one sports team, stop going out for movies & mini golf or eliminate activities that cost and offer no value)
7. Cancel cable or satellite and stream through Netflix, Hulu or Amazon Prime or use your local library and rent movies for free.
8. Make your own laundry and cleaning supplies.
9. Cut your own, and your family’s hair at home.
10. Dye your hair at home. Skip manicures & pedicures or learn to do them yourself.
11. Learn how to keep your grocery budget low since that’s the one expense that you have the most control over. You can go here and here for tips on how to save money on groceries.
12. Clean out closets and sell items that aren’t being used, don’t fit or aren’t wanted.
13. Send in your kids’ old clothes to ThredUp or Schoola for credit to buy new clothes they need.
14. Lower utility bills by turning off more lights and electronics and limiting use of central heating & air units as often as possible.
15. Stop eating out! Here are some quick meals you can make instead of eating out.
16. Upcycle & recycle as much as possible for crafts, clothing, household furniture and more.
17. Refinance your home. This is an alternative to moving or selling. This works toward your goal of becoming a one income household when you are able to use the existing equity in your home to pay off debt that you have in other areas. Even though your home mortgage may end up being slightly higher or for a longer duration, you will be able to eliminate some of your other debt which will help you pay less toward debt every month. This makes it easier to become a one income household in the immediate future, but may extend the time you will spend paying off your mortgage.
Most importantly, make sure both you and your spouse have the same goals. One of the biggest problem when a family is working toward becoming a one income household, is the fact that both spouses may not be on the same page. Make sure you both understand what it means, and what is expected of both of you not only in the process and transition, but after the fact. It’s a good idea to lay out defined rules of what each party will be responsible for and what is expected. Another good idea is to practice living on one income while you still have two incomes!
These tips are all about really thinking and writing things out. There are hundreds of changes you can make in your lifestyle to help make it possible to have a one income household (check out the Frugal Living Category here). Cutting back, using coupons, moving to a new home are all valid, but you must know what your ultimate goals are and get things organized to make this happen for you and your family.
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