Life happens

Sometimes a family has to transition from two sources of income down to one. This shift could be the right decision for the family at the time. Perhaps a family decides to homeschool their children. One person could lose their job. In any event, making the step to one income can be worrisome. For best results, having a strategy can help make the process much smoother.

Make a new budget

Create a new budget when transitioning to one income source from two. Make a list of all the current expenditures and discover which areas may need clipping to live comfortably with only one income. Perhaps this means spending less on clothes or eating out. Each household will have a distinct budget that works for their needs.

Build up savings

Most families should have a savings account in case something breaks unexpectedly. A savings account is vital when there is only one income because, with a tighter budget, there may not be much room for pricey repairs. Before leaping to one income, the practical idea is to put away a decent stash in case of emergencies.

Do a trial run of only one income

While having both incomes, it can be wise to practice living as if there were only one. If the family has problems surviving, maybe go over the budget and see if more additional cuts will work. The person who decides to stay at home may want to look into remote jobs or side gigs that add extra income to make the change successful.

Remember the money saved by one person staying home

Calculating expenses with one income will help, but families often forget about the money that isn’t going out now that one person is staying home. Think of the money saved from childcare, eating out, and travel expenses now that one person will not work outside the home. Less household income also means fewer taxes that the family will need to pay.

Transitioning from two incomes to one is possible, and there are many benefits to one person staying at home. Remember, this may not be permanent. However, moving into the shift with intelligent strategies, families have a much more promising opportunity to live comfortably with only one income.