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Going From Two Incomes to One Income

Whether you quit your job, lose your job or have a baby, the loss of a second income can be a big adjustment. Many families are used to two incomes, and feel as if it would be almost impossible to survive on only one income. With the right steps, and a little planning, your family can live on one income.

Know What You Owe

The first step to surviving on one income is to sit down and figure out what bills you have. Many families do not realize how many monthly bills they really have, or how much debt that they are carrying. It is important to acknowledge these things, so that you are able to work your budget in order to live on only one income. After looking at your monthly expenses, you will need to establish a new budget.

You may have found that your monthly bills are too high. Maybe you are paying for cable services that you don't use, or paying too much for car insurance. It is important to consider all of your expenses, and see where you can cut down. By reducing your monthly bills, you are allowing for money to be used for other things. You may find that a lot of your second income was used on wasteful things.

Once you take a look at your budget, and cut out extra expenses, you can begin to live on one income. With a new budget, you will have a better idea of how much money you really need to survive, and how to use your income wisely. The best part about living within your means, is the possibility of savings. If you do acquire a second income again in the future, you can learn to work all of that added income into different savings plans.

Think Outside the Box

If you are unemployed and are having trouble finding a new job, there are other ways to make money. You may want to consider selling unwanted items that are cluttering your house. Another option is to do freelance work. This could include graphic design, video production, writing, and many other side jobs. If you are hurting for cash, you may need to become creative with your income strategies. While it may not be a traditional full time job, you can still bring in more money.

Contact Advantage CCS

If you are carrying a lot of debt, Advantage CCS can help you work out a debt management plan that works on your new budget. They can help you work out repayment plans with your creditors and help navigate you through your new financial situation. Our credit counselors are available online or on the phone/in person. If you need help adjusting to your new situation, don't wait to ask for help. Be proactive and your transition from two incomes to one can be much less stressful.