Top 4 Secrets to Raising Your Family on One Income

Top 4 Secrets to Raising Your Family on One Income

Let’s face it – living on one income sounds a lot easier said than done. Between house mortgages, groceries, car payments, tuition, and kids, your monthly budget can skyrocket within the first week. Before starting a family, there were times when spending $300 on monthly groceries didn’t seem like much. However, feeding a family can get a little out of hand – and out of budget! Luckily, besides (online) coupons, and monthly budget planners, there are many ways to survive, and thrive, on a one-source of income.

Live in a Home You Can Afford

Buying a house is one common goal that most families share. To help you determine if you could afford to pay monthly payments, the mortgage shouldn’t cost more than twice your household’s annual income. Learn to make effective adjustments such as simplifying the space and making more room for organization.

Find Affordable Health Care

According to the Kaiser Family Foundation, one in three American children are insured by Medicaid. As parents, we make it our goal to maintain our child’s health and wellness. If your employer-sponsored plan doesn’t cover everything or you can’t afford proper coverage, assistance programs bring health coverage to families with limited incomes including, children, pregnant women, disabled individuals, and senior citizens.

Set up an Emergency Fund

According to Dave Ramsey’s bestselling book, The Total Money Makeover, building an emergency fund is the best thing you can do for your family. Not only does this eliminate the stress of being unprepared for an emergency, it will also help you handle the situation without going into debt. While this doesn’t mean you should stop planning the ultimate family trip, it is important to ensure that your emergency fund continues to increase. You may want to consider setting up automatic transfers every month. That way, the money will not reach your hands long enough to spend that money.

Buy in Cash

When raising a family on one income, your monthly budget will become low. Since high-cost items like cars and TVs depreciate fast, always aim to pay major purchases in cash rather than financing a loan. That way, you can avoid the additional monthly interest on your credit card bill. Set a budgeted amount and stick to it. This will also force you to consider whether you really need a new sofa or computer.

At the end of the day, what’s more important is whom we spend our days with rather than how much we own. When we learn to make necessary sacrifices for our household, it allows us to gain a better understanding of our necessities versus luxuries. If thousands of families across the globe can survive living on a single income, you can too.