Most parents know the challenges of getting the kiddos to school on time, drop off, pick up, work meetings, preparing dinner, etc. This was us; balancing two careers successfully while raising our daughter was increasingly becoming stressful until we decided to rethink our priorities. We returned to the drawing board and planned to live on one income. This instantaneously paved the way for us to no longer have the burden of balancing “all,” we now had defined roles and could successfully plan each day accordingly. Although the beginnings were not easy, we focused on five things: financially preparing, lowing our expenses, staying out of debt, living a life we could afford, and asking ourselves what the tradeoffs are.
The demands of two incomes
We both worked demanding jobs, and to add insult to injury, opposite schedules and had very little time together as a family. We would often both be stuck at work later than usual, consequently picking our daughter up from school later. On rare occasions our daughter got sick, we would both become stressed about who would call into work today rather than having a comforting demeanor. Yes, we had two incomes, but we sure did spend more when it came down to needing breaks from our daily lives; we spent triple on dining out. We had become accustomed to this tradition of both of us being away from home for long hours; it was our usual.
Why two incomes posed less reward
Schedules, work demands, and career opportunities, none of these were as satisfying as having a sweet time together. My career was no longer my identity, I had nothing to prove, and my family was far more rewarding than a pay increase. This is not for everyone; some may still find much reward in their job, perhaps just the pay is the reward. We kept landing at the same place, my husband wanted to advance in his career, and I felt called to shift in mine. It was a natural progression for us and took years of preparation and tireless hours, but we eventually arrived at a place where we could live on one income. We were living quite a modest life but still budgeting from two incomes, keeping us tied to both jobs. After carefully planning, we decided to take the leap and live on one income.
Why we decided to reduce our income to one
Having two demanding jobs increasingly became less worthy of our time; regardless of how well we managed our time, we still couldn’t surpass our actual work schedules. We concluded that this was never sustainable long-term after spending eight hours a day, five days a week minimum, plus late hours, added meetings and events, and having opposite working schedules.
Additional Reasons:
- Leaving my job meant I could homeschool our daughter, something we always wanted to do but could not do with a full-time job.
- No school cost, aftercare cost, additional school function cost, and no more stressful school commutes.
- More opportunity to pursue my business goals, something I have given some attention to over the years but have not entirely been able to follow.
- More money could be spent on our daughter’s enrichment activities, such as piano & gymnastics.
- Our schedules are no longer opposite; we have more time together.
- I could be available for our daughter, no longer outsourcing after-school care and occasionally sitters.
- My husband could pursue advancement in his career.
Your reason may be much different, perhaps a job loss or a desire to change careers; whatever the reasons, there will be a shift in income and budget. There are many benefits to restructuring income and budget. The one that resonated with us the most was the autonomy we now have with our time and raising our daughter. Making such a drastic change was difficult, and there were trade-offs; nothing was laid out perfectly. My husband currently works significantly more hours to bring additional home income; as we work toward our goals. Thus far, the rewards have outweighed the trade-offs, a key reason for us to continue on this path.
Practical Steps
Living on one income, we have learned, is less about revenue and more about managing finances. Sometimes, having two incomes is necessary, but if the goal is to live on one income ultimately, some steps can help you achieve your goal.
1. Financially Prepare
Having a healthy emergency fund and preparing a clear budget with one income before leaving a job will leave very little room for unwanted financial surprises. By creating a new “one income” budget, any expenses that need to be removed will be precise.
2. Lowering Expenses
The first step to lowering expenses is looking at your new budget; whatever costs can be removed, remove them for the time being or indefinitely. We removed these expenses: cable, subscription-based television, excessive clothing, car lease, dining out, gym memberships, supplements, salon visits, beauty products, etc. You can always add the nonessentials, but many of these costs we cut and did not miss.
3. Stay out of debt
Being radically aggressive on this for us was the only way to get out of debt and stay out of it. Nothing we want materially supersedes our desire not to have debit. We got rid of our car lease and then purchased cash; we had more peace with that decision than we ever did driving a new car. It can be overwhelming being in debt, but there is hope; if we can get out of debt, anyone can. Dave Ramsey at https://www.ramseysolutions.com/ has a simple plan if you need extra resources. Except for our mortgage, we have no other debt. If you want to know why we are ok with our mortgage debt, here are some more details https://simplesweethome.com/the-truth-about-credit-cards/
“The borrower is a slave to the lender.” ~Proverbs 22:7
4. Live within or below your means
We do not keep up with the Joneses; we are comfortable owning the things that bring us joy and slightly less. Our purchases are well thought out and planned for, often waiting for a good sale or used item. When we purchased our home, we bought used furniture except for our couch and bed mattresses. This allowed us to buy high-quality furniture for a fraction of the price if purchased new. Our vacations are planned around off-season times when prices are reduced, and we prefer Airbnb to reduce dining-out costs when on holidays.
5. What are the trade-offs?
There will always be trade-offs when making decisions; knowing the pluses and minuses before making the decision will be a helpful way to prepare for the changes. We ultimately budget and plan with one income stretching our funds, and we do not feel a loss but rather a gain in our quality of life.
Final Thoughts
Living on one income is a big decision, but it can be done if a plan is in place. Many obligations, such as debt and lifestyle, keep us on a two-income budget. If the ultimate goal is to live on one income, strategize to reduce expenses and eliminate debt. The beginnings can be challenging when reducing a two-income household to one, but it can be achieved by restructuring your budget. The rewards transcend far beyond material goods; we live intentionally and gravitate toward simplicity.
Photo by Philipp Deus on Unsplash