How to Live On Reduced Family Income

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By georgelarson
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Family income reduced by loss of job.

When your household income is suddenly reduced to one person working there are ways to 'tighten your belt' and re-evaluate your family income. Although you are used to a two family income, that is not the only way to maintain a family budget. Raising a family, when the family income is reduced, is possible with a few sacrifices and some smart budgeting.

Difficulty: Challenging

Instructions

Step 1

Cut Back For A One Family Income

Think of ways to cut back on monthly expenses. Make a list and add up your costs.
• Start with the gas used to go back and forth to work.
• Call your auto insurance company to let them know about the reduction in miles you will drive. When you reduce the miles you drive your auto insurance rates could be reduced.
• Review your cell phone plan to eliminate features you really do not need.
• Land line phones are cheaper and, as long as you have Internet access, email free.
• Do you watch enough television to warrant the need for cable or satellite? All of these companies are packaging their services. Call them to see how you can get what you want at a reduced price.

Sit down and really think about all the little things you can reasonably go without, which habits or spending behaviors you can change, and see what the total savings adds up to.
Step 2

Family Income - Reduce Spending By $600

Going out to eat.
• The average family in the United States eats out twice a week, with the average bill being $40 - that's $320 a month!
• Grabbing lunch at the deli next door costs an average of $7 a day, which adds up to $140 a month. If both you and your partner eat lunch out, the total adds up to $280 a month!
Stop renting movies.
• Instead of renting movies, consider checking out movies from the library. Most libraries have a large selection of movies to choose from that are free.
Step 3

Family Income - Saving Money

Don't forget to figure in the ways you will be saving money.
• Eliminate daycare costs.
• Figure out how much gas you used to go to work. You are saving that amount.
• Reduced need to purchase new "work clothes". Factor this into the savings.
Step 4

Family Income Increase By Working From Home

Even though you'll be staying at home, you can find a way to help bring in some extra dollars.
• If you're good at crafts or making things, you can probably sell your items at local craft fairs or small stores.
• For those who have a talent, offer a course to instruct others. This can be a profitable way to help with family income.
• Turn your skills into money-making possibilities to help balance the loss of a full salary.
• Surf the internet to find websites that offer ideas for bringing in a few extra dollars.
• Craigslist.com is a good place to sell household items you do not want anymore, sell items that you make, and also find odd jobs.
• Network with other families that have gone to a one family income as a resource and support.