Living on a single income can be challenging, but with smart planning and discipline, it is possible to thrive. Whether you’re transitioning to one income by choice or necessity, managing your finances wisely can reduce stress and increase financial stability.
Now, I wish I could say my husband was rolling in six figures when I quit my job back in 2009, but let’s be real—he was bringing in a solid fifty-two grand. And by the time Uncle Sam took his cut, health insurance did its thing, and who knows what else disappeared into the void, it was looking more like thirty-eight thousand. So yeah, not exactly “buying a yacht” money… more like “hope gas prices don’t go up” money. And let’s not forget our house payment was $1300 a month, which left our income as a slightly-better-than-minimum-wage job to cover all the other bills.
Here’s how we managed to sail the choppy waters of living on one income without capsizing into a sea of debt. With some smart strategies, a lot of budgeting, and the occasional “abandon ship” on impulse purchases, we managed to stay afloat and keep our financial boat from sinking. Grab a life vest—I’m about to share how we navigated these frugal tides!
1. Create a Budget and Stick to It
One of the most important steps to surviving on one income is creating a realistic budget. We tracked our income and expenses to identify areas where we could cut back. Prioritizing essentials such as housing, utilities, groceries, and healthcare allowed us to manage our spending efficiently.
2. Reduce Unnecessary Expenses
We scrutinized our spending habits and eliminated non-essential expenses. This meant cutting back on dining out, subscription services, and impulse purchases. Instead, we embraced home-cooked meals, free entertainment options, DIY solutions for home and car maintenance, and even challenged ourselves to have a no spend month.
3. We Gave Away Money
I know it sounds a little nuts, but if you’ve read my previous post, “I Quit My Job to Be a Stay-at-Home Mom During the Recession—What Was I Thinking?!“ then you know this wasn’t just my wild idea to quit—God gave me the nudge to take the leap. We believe in tithing, so we made sure to give 10% of our income back. And let me tell you, by trusting HIM, I’m convinced He worked some divine budget-stretching miracles!
4. Live Below Your Means
Adjusting to a more frugal lifestyle helped us make the most of our single income. We focused on needs over wants, avoided lifestyle inflation, and resisted the temptation of keeping up with others. Living below our means ensured we had extra funds to save.
5. Find Ways to Supplement Income
Even with one primary income, I explored side hustles and other income opportunities. From starting the website, doing some freelance work, selling handmade crafts, refurbishing furniture and selling items on facebook marketplace, these additional income streams helped us stay financially comfortable without compromising our family time.
6. Be Strategic About Debt Management
We focused on paying off high-interest debt to minimize financial strain. By consolidating loans and negotiating lower interest rates, we reduced monthly obligations and freed up more money.
7. Shop Smart and Use Discounts
We became savvy shoppers by shopping thrift stores, using coupons, buying in bulk, and shopping during sales. Utilizing cashback apps and discount programs helped us save significantly on everyday purchases. If you take away just one thing from everything I’ve listed, let it be this— it was a critical part of our survival.
8. Invest in Essential Insurance Policies
Having the right insurance coverage was crucial for financial protection. We ensured we had adequate health, life, and auto insurance to safeguard our financial future in case of unforeseen events. So many people cancel these policies to save money, but this is the one place you don’t want to skimp out on.
9. Adopt a Minimalist Mindset
Simplifying our lifestyle and embracing minimalism helped us cut costs and focus on what truly matters. Owning fewer but higher-quality items reduced clutter and long-term expenses.
10. Plan for the Future
Despite living on one income, we remained committed to long-term financial goals. We contributed to retirement accounts, invested in low-risk options, and planned for future expenses like education and homeownership. It’s ok to go slow and steady. I know it may feel like a snail’s pace, but even a snail gets to the finish line—one tiny step at a time.
Surviving on one income did require careful planning, discipline, and creativity. By budgeting wisely, cutting unnecessary costs, and finding additional sources of income, we managed to not only survive but thrive. With the right mindset and financial strategies, you can successfully navigate a one-income household and achieve financial stability.
UPDATE On Where We are 15 YEARS LATER…
Living on one income used to feel like trying to sail a boat with a broken rudder in the middle of a storm, while trying to avoid giant waves of bills. Each year seemed to get better and better. Fast forward 15 years, and guess what? We’re still living on one income. My husband’s making more money (still not yacht money) but we’re pretty thankful for all hard work and sacrifices he’s made. As for kids, we’ve got just one kid left at home—because let’s face it, the older ones are old enough to live off of ramen noodles in their own apartment. Ok maybe not ramen noodles, because we’ve taught them how to coupon. 🙂
Through it all, we’ve managed to stay out of debt, though some days it feels like I should start a “Financial Survival Guide” podcast and invite the kids to co-host—just to see how they’d spin our one-income adventures. I can already picture the interview: “Sure, we didn’t have a lot of money growing up, but at least we had family at every event… and sometimes, that was the only thing we could afford!”
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