How To Make Ends Meet on one income
July 10th 2008 17:53
It can be very difficult to make ends meet on only one income, especially when you have a family. After all we live in a two income society. Everything is basically priced for two incomes. As inflation continues to rise and gas prices go through the roof families who are stuck on one income find it very difficult to provide for thier family. It isn’t always practical for one spouse to go to work especially when there are little children at home. The cost of daycare may be more than what the spouse would make at a job. One spouse may have to stay home because there is no point in getting a job just to pay for daycare when you can simply stay home with your children. It is far more beneficial for children to have a parent at home taking care of them. There are things that can be done in order to make it easier to make it in our high priced world.
1). Live within your means- This is easier said than done but it is always best never to get in over your head. Take a good look at the amount of income coming into the household. When looking for a home or a place to rent don’t let the rent or mortgage exceed 25-30% of the total take home pay. For instance if the person working makes $20.00 per hour and takes home $670 each week after taxes, be sure that your housing expenses don’t exceed $800.00 per month. Realistically this is all you can afford if you live on this income.
2). Do not get any credit cards, and stay out of debt- If you live on one income it is best to avoid getting into debt. It is okay to have a credit card for emergencies, but only use it for this purpose, and get it paid off as soon as possible so you have credit available to you if anything were to happen again. It is also wise to set up an emergency savings account with a goal of having 6 months or more worth of income. Not everyone will be able to save this amount. If you can only put $20 per week away to start- then go from there. It will add up over time and you will at least have something to fall back on. As long as you don’t touch the money you will have over $1000 per year in savings by the end of the year.
3). Stick to a budget- Write down all of your bills and either use quicken to track your expenses or write them down in a notebook. Plan out each week according to the due dates and be sure you have money for all your needs. It can be a burden to have a car payment when you only have income so avoid getting debt of any kind. Leave room in the weekly budget for un expected things that may come up. Here is an example of a budget for someone who makes $670 per week.
Total monthly income $2680.00
Rent $800
Food $650- $162 per week (this may be possible if you use coupons and take other measures to save).
Emergency savings-$80 - $20 per week or more
Gas $300 - $75 per week
Electric (high $250- low $80) this will vary depending on the time of year.
Other utilities like garbage, water and sewer $80
Emergency cell phone $25
Clothing, vitamins or other family needs that come up $100
Life Insurance $35 (This is vital when a family is only living on one income)
Car Insurance $150 or less
Phone internet cable combined (basic package) $120
When your bills at their highest point you have $40 left each month for other needs or savings. When your bills at the lowest point in the year you have $335 left each month after everything is all said and done.
Take the income you make and experiment with it. If you can stay out of debt, live a more simple life, and take measures to cut costs and save you can make it one income. Living on a single income takes creativity and sacrfices, but it can be done. There is room in the budget for family outings, and going out to eat, but it all has to be planned so that you can meet your basic living expenses and provide for your family.
1). Live within your means- This is easier said than done but it is always best never to get in over your head. Take a good look at the amount of income coming into the household. When looking for a home or a place to rent don’t let the rent or mortgage exceed 25-30% of the total take home pay. For instance if the person working makes $20.00 per hour and takes home $670 each week after taxes, be sure that your housing expenses don’t exceed $800.00 per month. Realistically this is all you can afford if you live on this income.
2). Do not get any credit cards, and stay out of debt- If you live on one income it is best to avoid getting into debt. It is okay to have a credit card for emergencies, but only use it for this purpose, and get it paid off as soon as possible so you have credit available to you if anything were to happen again. It is also wise to set up an emergency savings account with a goal of having 6 months or more worth of income. Not everyone will be able to save this amount. If you can only put $20 per week away to start- then go from there. It will add up over time and you will at least have something to fall back on. As long as you don’t touch the money you will have over $1000 per year in savings by the end of the year.
3). Stick to a budget- Write down all of your bills and either use quicken to track your expenses or write them down in a notebook. Plan out each week according to the due dates and be sure you have money for all your needs. It can be a burden to have a car payment when you only have income so avoid getting debt of any kind. Leave room in the weekly budget for un expected things that may come up. Here is an example of a budget for someone who makes $670 per week.
Total monthly income $2680.00
Rent $800
Food $650- $162 per week (this may be possible if you use coupons and take other measures to save).
Emergency savings-$80 - $20 per week or more
Gas $300 - $75 per week
Electric (high $250- low $80) this will vary depending on the time of year.
Other utilities like garbage, water and sewer $80
Emergency cell phone $25
Clothing, vitamins or other family needs that come up $100
Life Insurance $35 (This is vital when a family is only living on one income)
Car Insurance $150 or less
Phone internet cable combined (basic package) $120
When your bills at their highest point you have $40 left each month for other needs or savings. When your bills at the lowest point in the year you have $335 left each month after everything is all said and done.
Take the income you make and experiment with it. If you can stay out of debt, live a more simple life, and take measures to cut costs and save you can make it one income. Living on a single income takes creativity and sacrfices, but it can be done. There is room in the budget for family outings, and going out to eat, but it all has to be planned so that you can meet your basic living expenses and provide for your family.
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