Home » Finance » Personal Finance

Can Your Family Live on a Single Income?

Aug 18, 2007
Many families dream of having one parent stay at home to raise the kids. The idyllic picture of having mom (or dad) home, taking care of the kids, cooking great meals, keeping a beautiful home, is hard to resist.

It's also incredibly difficult financially.

However, in many cases it can be done. And with practice the sacrifices you make may not seem so bad. You will probably take fewer vacations, and they'll be simpler. You will probably eat out less often. You will probably buy fewer things. If you and your family can live with that, you will probably be able to cope.

Provided that you can make the remaining income stretch to cover your necessities. You need to look at this to make an informed decision. Here are some steps to take.

1. Collect 3 months' worth of pay stubs from the person whose income your family will be relying on. Use this to calculate your average monthly income.

2. Collect 3 months' worth of bills. If you like, you can separate this into more or less fixed bills, which are things such as rent/mortgage payments, water bills, electrical bills and so forth, versus other expenses such as groceries. In any case you need an average of what you are paying out every month.

3. Subtract your average monthly expenses from the average monthly single income. Will it work?

If not, don't despair. There are often areas you can cut. When you have two incomes it is easy to spend more than you absolutely have to.

You can start with monthly bills. Do you really need cable television? What about having both cell phones and landline phones? Perhaps your family could get by with just one or the other.

Now look at the other things you spend money on monthly, but don't come in the form of bills. Can you cut that grocery bill down? Do you tend to buy more clothing or new electronic gadgets you don't need? What bad shopping habits do you have? Can you give up Starbucks?

Try to work out a budget that will work with the money you would have as a single income family. Then before you are actually a single income family, try living on it. Put the extra into savings. It makes a nice cushion for if things don't work out and for when those extra bills that you really can't plan for hit.

It takes time to learn to live on a single income. It is very possible for many families. It takes planning, both in terms of finances and in terms of what is expected from each person, but it is highly doable. And having the ability to have one parent there for the kids is just a delight.
About the Author
Stephanie Foster blogs at http://www.homewiththekids.com/blog/ about being a stay at home mom. Get more tips on saving money as a stay at home mom at her site.
Rating:
Please Rate:
(Average: Not rated)
Views: 101
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources