The recession has affected almost everyone in this country. From job losses, to retirement portfolios decreases people are struggling to recover and come out ahead. The unlucky ones who were laid off in 2009, finally found a part-time job in 2011. Whether by layoff or by lifestyle choice more families are facing the chance of life on one income. The very thought of living on a constrained budget, a single salary can be really daunting. Because we have become preoccupied by the concept that earning two incomes is the only way to preserve a family and a good financial life.
Raising a family on one income calls for certain sacrifices and some smart budgeting. Give below are a few financial tips for family living on single income, that will reduce their financial stress and help them have a secured future.
You should actually start saving as soon as you have some kind of income, whether it is a regular income or not. Because if you do not start saving early in life, your dreams have a little chance of fulfillment. You are forced into taking wrong decision of availing a loan to satisfy your dreams. And certain loans are 'wealth-killers'. Loans are bad for financial health. You got to make a sincere effort in saving money. Use certain smart and creative methods that will help save a little on monthly basis.
Calculating Monthly Expenses
To have a secure financial life you need to know your monthly expenses. Look for ways you could cut down your expenses. You can consider cutting your expenses on grocery bills, food, cable etc. You are wasting your money by paying for services you don't really avail. Instead shop around for all the monthly services you use. You could do the same when it comes to buying an insurance policy. Consider calling your insurance company to see if you can get a better deal. If you do find a better deal with another insurance company, call your current provider and ask if they can match it. Cut back on anything you don't value
Earn Money at Home
If one partner prefers to stay home, which does not mean you don't have a chance to earn money or financially support your family. There are several ways to turn your interests into a small home-based business to bring in a few extra cash. Use your skills to earn some money. Take complete advantage of the internet for good place for ideas and resources for home-based businesses. You could consider networking with other home makers that can be biggest support.
Stop the Credit Cards
Live within your means should be the mantra of your living. Don't spend more than what you earn. Living on a shoe string budget can be frustrating at time, forcing the couple to purchase a credit card. But credit cards can solve your financial problem or even trap you in severe financial troubles when you make late payments. Therefore, couples hooked on credit cards should withdraw enough cash each week to cover necessities and put the credit cards away.
Have an Emergency Fund
It is always important to have an emergency fund, as this will help you meet unexpected expenses without much trouble. Because financial emergencies can come in the form of a job loss, significant medical expenses, home or auto repairs or something you've never dreamed of. You should keep between three and six months worth of your living expenses set aside in your emergency fund. If you currently don't have an emergency fund or find it difficult to save money the key is to start small