Every family is different, and we all have our own ways of juggling home finances. These days many modern families subsist on two incomes – one from Dad’s job, one from Mom’s – to keep the household afloat.
Lots of families, though, also take the single-income route instead. It may be because one parent has lost his or her job due to unforeseen circumstances, or maybe they decided to leave the workforce permanently to take care of the kids full-time.
Whatever your personal reasons may be, making the switch to a single-income lifestyle can be a huge adjustment for everyone in the family. This change doesn’t have to be the end of the world as long as couples remember these important tips:
Create a budget and stick with it
I can’t repeat enough how important it is for couples to have a game plan ready before they make any big financial decisions. Both parents should put their heads together and come up with a strategy to cover all their finances for the next few years. A well-prepared budget can do wonders as long as everybody remembers their responsibilities and exercises discipline.
Know how much everything costs
The first step to making a budget is rounding up the total costs of the family’s expenses. Get into the habit of comparing the prices on everything you buy. You can start small by getting a car insurance quote online or checking the sticker prices of food at your local grocery. You’d be surprised how much money you unknowingly throw away every week!
Cut back on luxuries
Now that you know how much your family spends on a regular basis, you can start looking for ways you can lower your expenses. This may involve making a ton of sacrifices, like not going to the movies or buying junk food as much as you used to.
Some sacrifices, though, can be better for you in the long run. For example, you can easily scrap your cable TV and newspaper subscriptions by having the Internet replace both.
Don’t fall for the usual lifestyle traps
Now that you’re spending less, your children might start feeling insecure around other families that still buy lots of flashy toys and new cars. Instead of giving in to peer pressure, you can use this change as a learning experience for your kids. Remember, you don’t need fancy technology to be happy! Look for other ways to have fun, like playing at the park or doing family activities together.
Save for the future
There are lots of good reasons for you to set aside some money for the future. Your savings can come in handy for things like a new computer, Christmas gifts, vacations, or school tuition. We also recommend setting up a for-emergencies-only fund that can support your family’s needs for at least three months.
Teach your kids how to be thrifty
It’s never too early to teach your kids something they can use even when they’re older. You can show them the virtues of being responsible with their allowance through fun games and activities. Encourage them to keep a piggy bank of their own, which they can use to buy their own treats when they’ve saved enough.
Once your kids get into the habit of being thrifty, teaching them how to be practical, self-sufficient, and financially independent will be a piece of cake. I wish you and your family the best of luck!
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