Advice and Tips

4 Tips for Living on a Single Income

For those living in a single-income household, finances can be one of the biggest stressors. Households where only one parent works allow for easier coordination of schedules and might ensure someone is always there to care or provide transportation for children, among other benefits. It is possible to survive and even save money in a single-income household.

Save For Emergencies

One of the most anxiety-inducing parts of living in a single-income household is the thought of what could happen in an emergency where expenses are required to be paid. This could be medical bills, car repairs, or more. Before you or your partner quit your job, spend a few months allocating a large portion of your paychecks into a savings account that is reserved for emergencies.

These emergencies don’t need to be life-threatening; these savings could be reserved for physical ailments or unforeseen expenses that come as a result of you taking care of necessities. Whether you are fixing a flat tire at a local repair shop or treating back pain at a clinic like ThriveMD, these funds can come from your emergency account.

Pay Your Debt

Before transitioning into a single-income household, work with your partner to pay off as much debt as possible. Outstanding debt is one of the factors that make living in a single-income household impossible; before this becomes the case and before you lose one of your income sources, try to pay down your debt.

Whether it is medical bills or student loan debt, don’t let it hold you back as you transition into your new style of household.

Make a Budget

The only way you can survive when money is tight, whether you are a single-income family or not, is by creating a detailed budget and sticking to it. Budgeting monthly works for most families, who factor in all definite and potential costs throughout a given month and allocate money into their checking and savings accounts accordingly.

Prepare to Sacrifice

No matter how well prepared you are for losing a source of income in your household, it is likely that this loss of funds will cause you to make sacrifices in the way you are living and spending your money. This will likely mean fewer shopping sprees and cheaper family outings.

For many families, the loss of one source of income can force them to rethink the way they spend time as a family and the areas in which they have been spending money without much thought, and can actually be a blessing in disguise.

Using these tips as a starting point for preparing to transition into a single-income household will help you be successful as your financial status changes, and will set you up for success.

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