Automating Student Loan Payments »
Living on One Income
As part of our 2010 goals, we have decided to pay for all our bills and expenses using just one income. Part of this is to up the intensity of saving for a down payment, but I also want to see if we can do it. Somewhere down the line we’d like to have kids, and to have the option of a parent staying at home would be wonderful. I don’t yet know how all that is going to go, but I like the freedom of having flexibility.
When I made a budget for 2009, our expenses were greater than one income alone. Since then, three major things have happened that that make it possible to even endeavor to live on one income:
1. That one income increased. Thanks, raises!
2. We paid off car loan #1. That $404/mo took a good bite out of out budget.
3. We have a (small) emergency fund. Although I want to save all of my income for the time being, it’s nice to have that backup to work with in case we need it.
In 2009, I also noticed that we started to get a little complacent. It was our first year without any credit card debt since 2004. It was easy to spend more on eating out, lunches, fun money… everything, really. We were out of credit card debt! Look at all the money!
Please won't you save us from all the money?
(Bonus points if you get that reference)
We ended up wasting more than we should have. Now, I don’t regret enjoying ourselves, but we lost the drive to get a great deal – on our expenses, on our bills, at the grocery store. Living on one income is going to force that drive back.
On Friday I submitted the paperwork to change my direct deposit to our House Fund. It should take effect in February - and then here we go!
Photo from Aqua Teen Central.
January 27th, 2010 at 3:33 pm
Very good planning living on 1 income.We did this in 1977-78 prior to having a daughter so I could stay home for 1 year WISH we had continue to live on 1 salary bank the rest- for all our years but we did not.It took us many actually 30 years to recover from paying off house,college,wedding etc.So best of luck and keep at it
February 1st, 2010 at 3:44 pm
That is a great goal! I want to do this, too. One it helps us if anything detrimental happened with our jobs (can never be too secure with this economy) and two, we will have more freedom with out time. Spending more time with my family would be important.
Congrats on supercharging your housing fund. And also for automating your student loans (I need to do this too!).
February 9th, 2010 at 1:01 am
[...] we are, a week in February and our new one income budget. My husband was out of town all last week, so I cheated on the menu by eating tons of leftovers and [...]
February 9th, 2010 at 1:26 am
Pam - Thanks for the good wishes! I know our expenses will change over the years and I hope this is the start of many good years to come.
Money Funk - Your reasons are a fantastic description of how I feel!
February 23rd, 2010 at 10:29 pm
[...] was looking at our budget in Quicken, and comparing our spending to our one income budget. Our spending was in line, all of our bills had been paid or scheduled, and we had one more [...]