Managing your finances on a sole income can be tough, but take solace in the fact that it’s not unheard of for single-earner households to make good financial footing with their available resources. In fact, lots of couples need to survive on one income, during situations such as maternity leave (or when children are very young), but many families choose to extend this living arrangement because it simply works for them!
If you’re thinking about how you’re going to make it all work, don’t fret. Our guide below is here to let you know that it is possible, and there are practical steps you can take to ensure that this is worthwhile and help you work towards your own goals.
Making a Budget
Back to basics – whilst this may sound very obvious, the very first step for any household wanting to control their finances is to set up a budget. You need to understand where your money is going, and how you are going to adjust your spending based on what you can afford and what you need. Create a budget for you or your family, writing down the essentials you can cover with your limited income, and stick to it! Use Debt Fix’s Budget Calculator to embrace healthy budgeting techniques.
Never Be Greedy
To live within your means is to have total control of your faculties at all times. Don’t be compulsive, and don’t let greed get the better of your spending decisions. It’s not okay to buy a BMW, when you have only budgeted for a Toyota! Be honest with yourself and know what you can afford. One simple method to live by this rule is to not to build debt through using your credit card – use cash where you can.
Understanding Needs and Wants
This principle is always hard to regulate. Cutting down on expenses can be confusing; sometimes it’s only a thin line between the things you need and the things you want. Nevertheless, every dollar counts in your disposal income for a sole-wage household, so cut out all things that you could live without. Sometimes it is necessary to sacrifice some of your “wants” in order to make life better for your family. You will become a better person for doing so. Examples include saying no to friends when they want to go out, cancelling paid-TV channels, negotiating gym memberships, and switching from luxury brands to home-brands.
Earning Extra Income
Do you have a skill that you can outsource for extra revenue? There are lots of activities you can do at home afterhours – consider activities such as blogging, web design, baby sitting, tuition… the possibilities are endless! Earning extra income through a part time job is immensely helpful if you need a little extra to get going.
Becoming self-sufficient is a continual process, and it’s all about doing things yourself as opposed to paying someone else to do it for you. Think about doing your own home maintenance, even growing your own vegetables in your backyard! Make the most of what you can.
Call Debt Fix For Professional Advice
Our friendly team can give you guidance on what you’re doing right, and what steps you could take so that you’re in total control of your debt. Start right now by sending us a message.