If you have ever gone from two incomes to one, you understand how painful it can be financially. I am someone who has worked, and worked hard since I was 16. Work became a big part of my life. However, recently I started my own business and we had to go down to one income. On two incomes you have a “lifestyle.” You go out to eat a couple times a week when you are busy. You have lunch with the girls. You see a movie the night it hits the big screen. You have things set up comfortably. But life happens. Babies are born or jobs are lost. Will you be able to survive on one income? I know from experience that it is possible.
Own your new life.
If you are a new parent, focus on the time with the baby. If you were laid off, focus on what new job will fit your lifestyle. If you own your own business, make it a successful one that brings value to other people. Focus on how you will make your new life better instead of how broke you are.
Plan ahead.
The absolute best way of making this transition easy is to plan ahead. Now I know that sometimes you cannot anticipate lay-offs (been there!) You can’t always predict when someone will get very sick and cannot work. But if you can plan ahead, do. If you are still working, try pretending that you have already lost that job. Live off of the spouse’s salary and sock away your salary into a savings account or money market account. Even if it is just for a couple weeks, or a month, you can see how it will affect your life.
Remember one salary = fewer expenses.
Think of all you spend to work at your job. I spent $200 a month on clothes. High heels and business suits can cost you a fortune. Think off all the money you will save on gas ($200), daycare ($500 – $800 per child), and baby sitters ($100). Think of everything that you may “hire” people to do around your house that you can start doing: mowing your own lawn, cleaning your own house, etc.
Stick to a budget.
I have said it so many times, but I know it works – stick to a budget. I added up all of our expenses and made a budget that was to the dollar of what we could spend. I stuck to it because for every dollar we went over, I would need to put it on a credit card – and I didn’t want that!
Find a job that you can work from home.
Sell online, deliver newspapers in the morning while the spouse is with the baby, or you can even offer to watch someone else’s kid. There are many things to do from home. You just need to be creative.
Remember it gets better!
At first while you adjust to this lifestyle you may find that it is much harder than you think. You think “I was successful at my business and now I am searching for change in the couch so I can buy cat food.” But it gets better. It will take around 4 – 6 months for you to really adjust to this new way of living. It may be even longer. But for whatever reason you are no longer working, remember that oftentimes it is for the best.
Save up for the bundle of joy using savings accounts. It may be one of your wisest investments yet!
