If you used to live on two incomes, then your existing budget may not apply to your new one-income set-up.
Right now, you have different needs and priorities, so these must be reflected in your new budget.
Begin tracking and recording your expenses . Analyze your spending to determine how much you need to allocate in each category of your new budget.
Be realistic with how much you need and practice self-control so you can truly live within your means.
- Make the transition in stagesÂ
If you haven’t completely jumped into the single-income lifestyle, you could do a trial run first.
Give yourself two to three months of living as if you only have one steady income.This is a good opportunity to also put the money one of you is earning into that emergency fund or pay off a major debt!
This can give you ample time to see ifyour tight budget is working for you and if you can afford to live on one income very soon.
Something worth trying before you make the jump to a single income is to start cutting costs early, giving you a pretty good idea of how you’ll fare once you’re living on less.
You’ll want to remember these tips! Be sure to save this article to Pinterest or bookmark this page so you can easily come back to it!
Strategies for How to Live Frugally on One Income
When you’re letting go of one of your paychecks, it means you’re going to lose hundreds or thousands of income per month. You need to focus your energy on areas where you can get as much money back into your pocket as possible.
Let’s start this list with frugal living tips that will help you save a lot of money!
- Downsize or move to a cheaper house
If you live in an expensive neighborhood, your house is too big for your family, or your rent/mortgage is too high, decide if these expenses are worth it.
If they’re not, consider downsizing, moving to a cheaper apartment (if renting), or selling your house and moving to a cheaper neighborhood.
If moving is not an option, here are a few things you can do to lower your housing expenses:
- Negotiate your rent (if renting).
- Refinance your mortgage to save money on interest rates.
- Rent out your extra space on Neighbor or Airbnb.
- Get a roommate.
Downsizing may be a scary decision but when done right, it can help you save money on homeowners association fees, maintenance, property taxes, rent, mortgage, and so much more!
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Cut back on eating out
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