There are too many families who were taken by surprise when one breadwinner suddenly lost his or her job, but some couples might choose to give up an income for one reason or another. Maybe one person was offered a job in another city, leaving the other one without employment, the couple wants one parent to stay home with the kids, one half of the duo is miserable at work and wants out ASAP, etc. Before you make the choice to live on one income, you need to find out if it's a viable option by following these steps.
- Re-calculate Your Housing Costs - It's likely that your rent or mortgage accounts for the largest chunk of your expenses. Calculate what percentage of the household income would go toward these costs. If it's a number that doesn't make financial sense, ask yourselves if you're willing to move somewhere less expensive.
- Get Your Financial House In Order - Before making the decision to live on a reduced income, it's crucial that you have a solid emergency fund