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There are various reasons you’ll go from two incomes down to just one. You need to follow these three money tips to avoid stress.
Maybe you and your roommate decided to go separate ways so you’re the only one paying the bills now. Maybe you and your partner broke up. There may have even been a death in the family. There are all sorts of reasons people go from two incomes to one. It could even be your own income dropping from two jobs to one.
It’s important to get ducks in a row as soon as possible. These money tips aren’t just about telling you to spend less. You already know to do that. I have practical tips to help you spend less, save more, and feel less stress in this time.
Assess all your income, outgoings, and savings
The first place to start is with your budget*. You need to look at the amount of money you having coming in and going out. Look at every little expenditure you have from your bank account.
At first, just write everything down. Make a note of your monthly income (by yourself) and your bills (all of them) for the last three months to see where your money went. You can then cut out any expenses that were from the other party if that’s why your income has gone from two to one. This will show you the amount you spent during that month.
Don’t try to judge any bills by losing someone from the house. It’s best just to look at that as they come over the next few months. Budget for the full amount for now.
It’s also worth looking at your savings, if you have any. This is a great way to see if you have any extra income for the next couple of months until you budget better or until you find a second job if you need it.
Use something like Mint to keep track of everything
I used to use a budgeting app called Mint. I don’t use it that often anymore, but it was helpful when I needed it for budgeting.
You can link your bank accounts and credit cards directly to the app. This helps you track your spending, with each expenditure being tracked as a specific item. You can see where your money is going at a glance based on shopping trends. Do you spend more than you want on eating out? Maybe you’re spending a lot on furniture right now but won’t need to very soon.
Mint also makes it possible to track savings goals. One of the top money tips when going from two incomes to one is to make sure you’re still saving. It’s up to you now when it comes to an emergency. You need to have money going into that emergency account. Mint can help you set a goal, see how much you need to put in each month, and help you keep track of that goal.
It’s possible to see everything at a glance on the go. You add the Mint app to your phone, and you get to check in on how all your accounts are doing at once.
The You Need a Budget (YNAB) app is another option. I’ve never used this one so I can’t tell you what it’s like, but it is very similar to Mint.
Follow money tips to clear off your debt
When you go down to one income, clearing off debt can seem impossible. You want to do more than just clear off your minimum payments. That just means you’re clearing interest and the tiniest bit of your debt. You’ll need to pay off as much as possible, without compromising your emergency fund too much.
So, you’ll want to find the best way to clear off your debt. Make this a priority, whether you’re doing the snowball method or the avalanche method. Once you clear off that debt, you will find that you have more money for everything else.
This is where I will tell you to cut back on your purchases. Get a plan in action that could see you clear your debt within a year or two. Sacrifice things like vacations and home renovations for that time. It’s going to be worth it when you’re clear of debt. Then you can use that money to save for vacations and home repairs in the future. But if you urgently need a home renovation, look for an affordable contractor similar to Universal Windows Direct of Syracuse with a good quality of work. Browse the internet for the best contractor and decide if you can afford it right away. By visiting this website at https://cartersconcrete.co.uk/mix-on-site-concrete-delivery-how-it-works/, it will help you find the best contractor. However, if there’s a need for telescopic equipment, contact Aerial Lifts to make an inquiry.
Which money tips have you followed since dropping down to one income? Share in the comments below.
Get in touch if you need more help with your finances, especially when dropping to one income.