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Living on one income is not as easy as it was in the last century. It requires hard work and determination — and some of these strategies.
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Fifty years ago it was commonplace for just one parent (usually dad)to work. One income was sufficient to pay the family’s bill. Today, there might be a number of reasons why a family would be living on one income.
Mom or Dad might be laid off from work or unable to find a job.
Mom or Dad might need to leave the workplace for health reasons.
Mom or Dad might decide to stay home to care for the children or an aging parent.
One parent might be in school or other vocational training.
There might only be one parent in the family. Single parenting is a tough job, not to mention it’s difficult economically.
You don’t want to rely on two incomes in case of health or economy-related issues arise in the future.
While our family currently earns two incomes, we try as best we can to make it living on one income, mainly because of reason #6. If one of us became unable to work or the economy took a major dive (again), we’d like to be living under our means to be able to weather the storm.
I never expected that our family would be as hard pressed as we were in 2007. We’d been living beyond our means and got ourselves in a mess of trouble. Thanks be to God, we got out of debt.
Getting out of debtand living on one income have been some of the best things we’ve ever done.
Living on One Income
Whether you want to or have to, living on one income doesn’t have to be heartbreaking. Here are some of the things that we’ve learned the hard way to make living on one income possible:
Monthly Accounting Forms
1. Create a budget based on one income.
Create a zero-based budget in which every dollar has a name.Determine all your required expenses and list those. Subtract that amount from your income. Anything leftshould go toward savings (like an emergency fund) and discretionary spending.
If there’s nothing left, then you need to figure out how to increase your income or reduce your spending.
2. Build an emergency fund.
An emergency fund is a set amount of money that you don’t touch unless you really have an emergency. Dave Ramsey sets a starter emergency fund at $1000. Folks disagree on what your longterm emergency fund should be. We have nine months’ to a year’s worth of expenses socked away in an account we don’t touch. It’s liquid in case we need it, but we don’t touch it. Experts’ recommendations range from three months to a year.
You will have to decide what you need based on your particular circ*mstances. If you own your home outright and have no debts, you might not need as much as someone with higher monthly expenses. Likewise if you know you could find a new job quickly.
3. Reduce expenseswherever you can.
If you don’t have an unlimited budget — we don’t — then keeping a handle on expenses is almost a full-time job. Costs can creep up when you’re not looking. A couple extra trips can add up. (I’m looking at you, Target.)
As Mad-Eye Moody says, your spending needs “constant vigilance”. You can’t turn a blind eye to your bank account. Sodas might become a special occasion treat — and cause for a picture! — and that’s okay!
Remember there are lots of little ways in which you can cut back that will ease the strain on your wallet:
Gifts
Vacation
Groceries
Birthdays
Entertainment
Baby Stuff
Cars and Gas
Clothing
Home Improvements
Household Expenses
Christmas
School Stuff
4. Enjoy simple pleasures.
You don’t need a ton of money to live a good life. You might need a little creativity, though.
Homebaked always tastes better than store bought — and it’s cheaper, too. Books and movies are free at the library. The park is just around the corner. Second-hand bikes sell for a song. Pinterest is chock full of ways that you canlive frugally.
You don’t need to be down in the dumps if your income isn’t soaring. Most of the world doesn’t have all the resources that we do. Chin up, buttercup, you can rock this.
What do YOU think?
What has worked for you living on one income? Let us know in the comments section.
To budget for a single income, start with the take-home earnings you will live on and subtract essential expenses, such as a roof over your head, food, debt, and health insurance. Then look at wrangling your negotiable costs, such as owning one car vs. two or how much you budget for meals, to make ends meet.
Living beneath your means and living within your means are similar ideas. You're earning more money than you're spending. This allows you to save money for your financial goals, and it also gives you a cushion in case an emergency arises and you need extra cash.
A binary income increase lifting individuals out of poverty was associated with 0·13 SD improvement in mental health measures (95% CI 0·07 to 0·20; n=42 128; 18 studies), considerably larger than other income increases (0·01 SD improvement, 0·002 to 0·019; n=216 509, 14 studies).
The top 1% is a byword for wealth — and it's only gotten harder to become among the nation's top earners. Nationally, it now requires annual income of at least $787,712 to be among the top 1%, a 20% increase from last year, according to SmartAsset's analysis of IRS data.
Living on $1,000 per month sounds impossible. For many, it might be. But it can be done with some strategic planning, intentional action and the ability to compromise. You won't be able to do everything you want to do when living on only $1,000 per month, but you can make it work.
In addition to a decrease in stress over financial concerns, living without money offers many possible benefits such as reducing your environmental impact, increasing your understanding and appreciation of what you have, and helping you live a more purposeful life.
Living below your means has short- and long-term benefits, which can help bring you closer to financial security. Some of the benefits of spending less than you earn include: Freeing up money to help build an emergency savings fund. Saving more money for big purchases like a vacation, car or home.
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.
Psychologists have long agreed more money can equate to more happiness — to a certain extent. Since a notable study published in 2010 by Princeton University's Daniel Kahneman and Angus Deaton, many have agreed that after about $75,000 a year, your happiness somewhat plateaus, even if your income increases.
A "good" salary in the United States can vary widely depending on factors like location, industry, and individual lifestyle. However, as a rough estimate, many people consider a salary above $75,000 to $100,000 per year to be good, especially in areas with a lower cost of living.
People earning more money tend to be happier than those making less, but how money affects happiness varies by individual, which means there's an overlap in happiness among people at various income levels.
An individual needs $96,500, on average, to live comfortably in a major U.S. city. 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.
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.
Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping
Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.
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