How much money do you need to make for a family of 5?

Average monthly expenses for a family of 5 or more: $8,068, or $96,814 annually . Yes, we do note that a family of five has lower monthly expenses than a family of four, according to the BLS. Such is the nature of statistical estimates.

How do people survive on one income?

Define short-term and long-term financial goals . For example, paying off student loans, paying off credit cards or other debts, or saving for retirement. Allocate a portion of your income to build and maintain an emergency fund, aiming for three to six months of living expenses.

What is a one income family?

A one-income family will, by definition, earn less money than a two-income family . The pursuit of possessions will need to be tempered. You'll own a smaller home with less-fancy cars. Luckily, you won't be missing much. There's far more joy to be found in pursuing less than can be found in owning more.

How much should a family of 5 spend on groceries?

On average, a family of five spends anywhere from $922 to $1,488 a month on groceries, according to USDA monthly food plans. If you're looking to curb your spending, consider meal planning, buying in bulk, and shopping at more affordable grocery stores.

What is the ideal income for a family?

That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children. To raise two kids and still live comfortably in six U.S. cities, a family must earn over $300k .

Can you live with $1,000 dollars a month?

Living on $1,000 per month is a challenge . From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.

What percentage of American families live on one income?

An estimated 47% of family households live off one income, according to recent U.S. Census data.

Can a person live on $1,000 dollars a month?

But it is possible to live well even on a small amount of money . Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money. Cutting down on housing costs by sharing living spaces or finding affordable options is crucial.

What is the happiest income level?

This belief is supported by a widely publicized 2010 study led by Daniel Kahneman and his Princeton colleague, Angus Deaton — both winners of the Nobel Prize in Economics — which concluded that happiness only increases with income up to $75,000 .

What is the 50 30 20 rule?

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings . The savings category also includes money you will need to realize your future goals.

Can a family live on $1,000 a month?

The harsh truth is that $1,000 per month is very hard to live on , even if you lower your costs to the bare minimum. With inflation causing the prices of goods and services to increase every year, $1,000 a month will become harder and harder to live on going forward.

Can a family live in $30 000 a year?

It's quite possible to live well on $30,000 per year if you're debt-free , but what if you have debt? I would recommend trying to pay it off as quickly as possible with the debt snowball approach. Cut your expenses as much as you can and put the amount you save toward debt each month.

What is a livable salary for one person?

But just how much does a single person in California need to make to live comfortably? A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.

5 Steps to Living on One Income: How Our Family of 5 Thrives (2024)

This article may contain affiliate links. I may earn money from the companies mentioned in this post with no additional cost to you. Please read my disclosure policy for more info. All Bible quotations are from the New King James Version (NKJV) unless otherwise stated Bible Copyright Attribution.

We have been living on one income for the past 10 years. It’s a choice we made based on raising our children.

I stopped working when my daughters were 3 years old and I was pregnant with my son. It’s one of those decisions I look back on and wouldn’t change a thing.

I never thought that I would be a stay-at-home mom. I always pictured myself working. I was a real estate agent and I loved every minute of it.

I loved the people I got to meet and I loved seeing the different houses that were for sale. It was a job but it was fun. We started thinking about living on one income when I was pregnant with my son.

We were already paying around $1,000 a month for my twin girls to go to daycare and I didn’t want to pay an additional $500 to send my son. Especially because he was a baby.

My girls were able to come to work with me until they were about 2 years old and then they got too active to be at the office. I really didn’t want to bring my son to the office. It was too hard to get work done.

The Lord started tugging at our hearts. I didn’t want my kids to grow up with me working all the time. Real estate is an “over” full-time type job. Clients would call me at all hours of the day, holidays, weekends, you name it!

Making the Decision to Live on One Income

We prayed and came to the decision that I would stay home with the kids. Now, this may seem amazing but we had to give up so much.

We had to downsize our house, survive with one car, sell our extra toys, and cut back on our expenses. It was tough but we survived.

I’m here to tell you that living on one income isn’t as bad as you think. It’s completely possible. It’s a sacrifice you make for your family. It may also only be for a season. I plan on going back to work when my kiddos are grown.

They won’t need me as much and I’ll probably be bored. I keep renewing my real estate license so I’m prepared when the time comes.

In this post, I want to share my tips about living on one income. I’ve learned a lot over the past 10 years and I want to share what I’ve learned.

How to Live on One Income

1. Sit with Your Spouse and Discuss Finances

My husband and I share a bank account. Neither one of us has our own money. All the money that comes into our house is in a joint bank account. You need to be on the same page as your spouse from the beginning.

2. Make Sure You Can Survive Living on One Income

It would be nice if you could make a quick decision about living on one income but it’s not reality. Most likely, you are both working because you need to (or you think you need to).

After you discuss finances, you need to make sure you can survive living on one income.

After you make a budget, practice using it. Put the extra income in your savings account and see if you are comfortable. You can make the transition slow and put money away into your savings. It’s always a good idea to have an emergency savings account.

3. Tighten Up Your Budget

It takes a little bit of trial and error to tighten up your budget. We decided to cut back on cable and eventuallyget rid of cable,cut back our grocery budget, stop going out to eat as much, and create a weekly meal plan. There are some great ways to save money that you may not be aware of.

Tightening up your budget will make it much easier to live on one income. Once you get the hang of it, you may be able to add some things back in.

Don’t miss these online budget tools to help you stay on track.

4. Be Content Living on Less

I consider it a blessing to stay home and raise children. If that means I have to cut back on my personal luxuries so be it. We’ve learned to buy less expensive clothes and actually love shopping for used clothing online. The clothes end up being really nice at the fraction of the cost.

It’s a great example for our children to see that we don’t have to have everything we see. Splurging once in a while makes it more memorable. We buy all the necessities for our children and if they want anything in excess, they buy it themselves. It’s a great way to learn how money works.

5. Make Saving Money a Part of Your Life

I moved out of my parent’s house when I was 17 years old. I didn’t have a clue about saving money. I was working and providing for myself.

I could have saved myself a lot of money and wouldn’t have had to stress as much. Thankfully a few years later, I learned how to use coupons and learned other ways to save money.

Saving money is a huge part of my life. It has actually rubbed off on my family members. Once you find theeasy ways to save money there’s no going back to full price.

You won’t want to pay full price knowing that you can get a better deal. I also love using Amazon promo codes to save big.

Are You Living on One Income?

Those are my tips for living on one income. It can be done. You can even stay at home and earn extra money. It’s really hard for me to do that because I homeschool my kids.

My girls are entering 8th grade so they are pretty independent but my son is entering 5th grade and we are trying to get him independent. It will happen one day, just not now.

Do you have any tips to share?