We have been contemplating on the idea of living in one income and we would like to make some radical changes in our lifestyles to make this happen.
According to the books and blogs I have read, there are three basic things a couple must do if they want to live in one income.
1. Sit down and talk about the idea. – This idea is great for starting couples. Since [it is assumed that] there are only two of you, basic needs are easy to cover with just one income. Determine also whose income it will be. Books tell me that couples have to live with the lower income but that is not an absolute rule.
2. Determine expenses of each. – The couple’s expenses are different from each other. They need to know what is important and what is not through a thorough assessment of each purchase. Give it a month or two to determine the expenses by listing each purchase and analyzing them at the end of the month. It is important that both parties agree on one simple goal - and that is to minimize expenses.
3. Devise a plan and implement it. – This is the most important thing among the three. After the couple has determined what are important and what are not, they can now devise a plan on how to minimize their expense and live in one income. It is also important to update the plan accordingly and counter check or sustain every quarter to make sure that the plan is implemented and the goal is achieved.
So where are we right now?
We are currently at Item number 2 right now. We agreed to make a list on all our expenses so that we can track where our money goes. We also agreed to ask each other’s opinions before a big purchase. It is easier when both of us are on the same page when it comes to money management techniques and investment strategies.
We are just on our first quarter and I hope we can make it through.