4 Ways to Live on One Income
If you live in Denver, you know the housing markets are extremely high. The idea of living off of one income could seem impossible, but it’s not. After all, people live off of one income for plenty of reasons- one person wants to be a stay at home parent, one wants to go back to school full time, or maybe someone just wants to quit their job. Hey, it happens for plenty of reasons. Whatever your reason for living on one income is, here are some ways to help make that happen.
1. Eliminate your spending. You and your partner would need to sit down and take a look at the checkbook, bank statements, whatever it is and look at where your money is going. If you’re not a people who are concerned with where every penny is going, you’re going to want to start. After all, every penny counts. Decide what you can do without and make the decision to stop spending money on it. Then, decide what you need and create a budget for it.
2. Live within your means. The best way to put you in a hole is to spend more than you make- that’s a fact. If you want to live on one income, you absolutely must avoid that by all means possible. Know what you can spend and don’t go over that number. It’s as simple as that.
3. Knock out debt. Debt may not be completely avoidable, so choose your battles wisely. For example, if you have a mortgage payment, that’s OK, but if you have a maxed out department store credit card, that’s not so OK. Recognize what works for you and what works against you. If you need help, contact a financial advisor.
4. Increase your income. As your cutting back on expenses and paying off your debt, you should also consider increasing your one flow of income. This may come from a raise, a new, higher paying job, or investment opportunities. Anything and everything is possible.
If you can, practice living off of one income for a month or two. This would be a great opportunity to put that second income straight into your savings account.
How do you manage on living off of one income?