Tips for Transitioning from Two Incomes to One | Dave Mortach

We do all our projects and activities for our lives based on the money we make. It’s necessary to have a lot of money to live well. At some point, you and your significant other may decide to move down to one income. Here are some tips you can use so that you can afford to do so without losing your mind or money.

PRACTICE

If you’re lucky, you may not have to unexpectedly drop one of your incomes. This will give you time to prepare for the new financial situation. For instance, while you’re still working on a practice run, try to live off of just one income for a couple of months. This will allow you to see where you can make improvements and avoid going over budget.

SAVE MONEY

If you’re still having a hard time with the trial run, ensure you have money in your emergency fund to cover your expenses for three to six months. Enough money in this account will allow you to maintain a steady income while living with one income.

MAKE A BUDGET

If you’re transitioning to a new lifestyle, you might need to adjust your budget to accommodate less money coming into the household budget. However, this is not the case for everyone. If you have a lifestyle change that involves working on a pet project or taking care of your kids, you might find that you will be spending less after-income drop. These adjustments will not immediately get you back in the black, but they will give you a more accurate picture of your post-income life.

CUT COSTS

One way to increase your wealth is by spending less. However, since the amount of money you’re bringing in is steady, you must start looking for new ways to save money. There are plenty of things that you can do to save money, such as bundling your bills and cutting the cord. You can also buy secondhand or do it yourself.

Budgeting to live on only one income can be challenging, but it’s possible to keep doing everything you love and still have enough money to live if you budget carefully.

Originally published at https://davemortach.co on September 12, 2022.