Living on one income

Hi girls. DH and I are considering starting a family in the nect few months but, of course, are concerned about finances. We have already refinanced to save as much $$ as possible. I'd like to be a SAHM. Any tips on how to live on one income?

Re: Living on one income

It is definitely an adjustment, but for us it is manageable.

We use coupons, more meals at home and buy less thing we "want" as opposed to things we "need". I didn't realize how much money I was spending frivolously.

Re: Living on one income

I don't know for others but the one thing i have learned even more is need vs. wants. do i need a new pair of shoes, when i have 10 perfect ones in the closet, etc. I just have learned to scrafice a little. don't get me wrong we don't do with out but if i don't need it i don't buy it. meals are prepared at home, most of the time and vacations are broken down to events, circus, zoo that type of stuff. I have to girls so that maybe clothing them easier, I belive in handyme downs. It's all a matter of knowing that you want to stay at home and deciding to buckle down and know where you are spending your money.

Re: Living on one income

I agree with the other ladies ~ For us I weigh "needs" vs "wants" as well ~ Cut coupons ~ buy in bulk (diapers etc) Eat more at home. (which is great so when we do go out to dinner we enjoy it more) definately an adjustment but so worth it

Message edited 4/2/2009 8:35:59 AM.

Re: Living on one income

Re: Living on one income

I would love to be a SAHM..for us, we realize with the economy the way it is, if my DH were to loose his job, it could be really bad for the family.

Either way, you make it work. It is not easy and it really depends on your DH's income..

Re: Living on one income

Realizing your budget, knowing what needs vs wants are , and living within your means are the most important. If you can look over the past 6 months of bank statements credit card staements, etc and your calendar. Look at what you spent - what events you are obligated for, what was neccessary expenses, what you can forgo, what you can really afford.
For example, the local town hall has a lovely mommy and me class for $350. It goes from early September through mid June. I didn't join gymboree or my gym (which can run $300 for 12 weeks) - I joined this small local mommy and me, because the price couldn't be beat.
You just need to be aware of what you can afford to do and see if you can live without the things you cannot afford. I still shop, but not as often and for less expensive items. I cook more often and buy meat/stock items in bulk. I look for deals and sales.
Hope that helps.

Re: Living on one income

well, just make sure its possible, that one income can cover at least all of your bills and have extra money for food shopping/formula/diapers/Dr's copays.

I would say formula and diapers usually cost us around $60-$80 a month. We didn't think of the other bills that would go up, like gas and electric because I am home more so I really have to be aware of lights left on and stuff.
I am VERY lucky - I have a very generous cousin and sister who have given me sooooo many hand-me-downs that I don't need to buy a lot of clothes.

Re: Living on one income

Things I did:

- Stop eating out a lot and getting take out a lot. The way to do this is to make a menu plan weekly (before doing your weekly grocery shopping, so you have everything you need for the plan), and even better, cook big batches to portion out and freeze. That way, you have a plan in place for each night of the week-- no getting caught short and having to go out or order out. And if you don't feel like cooking, like if it's been a horrible day, you just pull one of the pre-made items out of the freezer.

- Cut coupons, shop sales, stick to a shopping list! For me that made a huge difference.... stopping the impulse buys.

- Raise your insurance deductibles, and shop around for better insurance prices. Particularly homeowners deductibles, since you probably don't really want to file minor claims anyway, given how people on LI are getting dropped all the time anyway.

- Declutter your house and sell all the junk on Ebay or Craigslist. You'll make some pocket money and your house will look so much better.

- Clean your own house. So many people say they "need" a cleaning lady but I totally don't get that. We have a pretty good sized house and I really don't find it cuts into my life at all to clean it myself. DH mows the grass himself too, no lawn service. He enjoys being outdoors doing it and getting a little extra exercise.

- For exercise, if you have the room in your house, it's more cost efficient to invest in a nice treadmill or elliptical (even a used one from Craigslist), and maybe a few dvds like 30 Day Shred, than to have the recurring cost of a gym.

- Embrace hand me downs, as well as cheap baby/kid clothes from Target, Walmart, etc. Think of how these things get peed in, pooped in, food stains all over, etc... then they're outgrown in a few months anyway... do you really want to spend a fortune on them?

I did not find any of these moves to be a big sacrifice at all. Sure beats hustling out the door to work and dropping the kids at daycare!