How to Transition from Two Incomes to One Many families enjoy the security of a two-income household. Many working parents admit that they would rather spend more time at home raising their kids. In the current economy, it is easy to see why. Having at least one parent at home is preferable in certain situations, although they will be losing one income. Transitioning from two incomes back to one is a big change but can be accomplished if you have a plan. Transitioning from two incomes down to one can seem a little overwhelming, but if you follow these tips for living on one income, you’ll make the transition smooth and easy.
Have a Plan Having a plan ahead of time relieves stress and worry about what will happen when the change occurs. If you have a budget based on a single income, it will be easier to see how the money will be spent and help you worry less.
Put Money in a Savings Account Announcing your departure and heading off without any savings in the bank is a recipe for disaster. Financial experts recommend having at least 6 - 12 months of income put aside in savings to live on in the event of an emergency.
Pay Off as Many Bills as You Can It will be easier to make the transition to one income by not having car payments and credit card bills looming overhead. It is a good idea to pay down the largest bills first, and then the smaller ones.
Eliminate Unnecessary Expenses Living on one income means cutting back on expenses to stay within the budget. There are free sources of entertainment that can be utilized while cutting out cable and trips to the movies.