Learning To Live On One Income

When we decided that I would be a full time stay at home mom, it was time for us to make a lot of changes in our lifestyle, budgeting, and overall money management. Some changes have been drastic (like selling our home), and some have been small, but I can honestly say all have been worth it.

Can you live on one income? Yes. Can you live on one income as if you have two? No. Unless your income is going to be made up elsewhere, you will have to adjust to a new lifestyle as a one income family. Depending on how you are living now will depend on how little or how much you need to adjust.

I often thought we could not live on just one income, as it seemed we were barely making ends meet with two. The reality of the situation is that we were not being disciplined with our finances, we were not budgeting properly and most importantly we were leaving God out of the picture. Just when we thought we couldn’t live on any less, our income would get cut or expenses would go up. Each time I would learn how to be a better steward, how to stretch those dollars even further, and how to wait upon the Lord.

One of the biggest things I have learned in how to become an income saver instead of an income earner. Have you ever heard the saying a penny saved is a penny earned? It’s true! Every dollar I make at a job is taxed. So my dollar earned is actually about .70 (probably less). When I save a dollar, guess what? I have the entire dollar, free and clear. Would you rather work to gain a dollar or work to gain .70? On a small scale it may seem like counting pennies, but believe me, those pennies add up.

Once I realized this, I was on a mission to save as much as I could. In the course of a year, I have saved more money than I ever made working outside the home. And that money is all ours, tax free. And I didn’t have to leave home to make it J

We began by going over every item in our budget and seeing what we could cut. Eventually we got down to what I call “bare bones” which are basically just the necessities. Just when I thought our budget was as low as I could get it, my husbands pay was cut and we needed to figure out how to cut even more.

Again I went, line by line researching, making phone calls, and educating myself on the best ways to cut expenses. I was shocked when I found I was able to save and additional $300 per month from our already lean budget by doing this.

If you are considering making that switch from one income to two, begin by writing out your entire budget and looking for ways to cut. Can you get cheaper auto insurance? Cut out some phone features or find a less expensive service? Trim your internet expenses? Cut your grocery budget? Cut back on usage and lower your utility bill? For every expense, brainstorm a way to eliminate it or lower it. Even if you save a small amount, a little here and there adds up.

While each family must determine for themselves what expenses are necessary and what aren’t (there are some families who make our budget look elaborate!), I am convinced that you can get the best and lowest price on virtually everything in your budget with a little effort, a little prayer, and little time. By cutting and eliminating expenses, the reality of living on one income becomes a very real possibility.

I used to think that it was impossible. But month by month I am amazed at how well we are provided for. The transition isn’t without sacrifice, sometimes it is downright hard, but as I said before definitely well worth it!

You can browse all of my bare bones budgeting posts by clicking the budgeting category in my side bar or by going here.

Tagged as: living on one income, mommy come home