Becoming A One Income Family

Let’s face it, it is a big bad two income world out there, and ironically the time you need both your incomes you find yourself on maternity leave and down to one income. Why is it that when you are in you 50’s all the kids have moved out (hopefully) and you are by then at the top of the career food chain earning the most you have ever have. Doesn’t make much sense does it? Today I wanted to share some ideas on getting ready to become a one income family.

If you have a baby on the way it’s time to start training, not at the gym, training yourself to live on one income. This is a great way to see how and if it will work, just don’t touch one pay, pop it in to a high interest savings account. At first you will miss it and want to tap in to it, but it’s like anything you have to practice and there is a reward, after a few months of this (especially 9 months) you could end up with around $20K in the bank. Be disciplined and this is a great way to get started.

You may be eligible for the baby bonus which is $5000 paid in instalments for 12 weeks. Or you may be eligible for Paid Parental Leave if you have worked for 10 months in the lead up to the birth which is paid fortnightly over 18 weeks and is the better option of the two. Either way figure it out now how you are going to go and start planning because it will have a huge impact on the way you live, the more you get sorted the easier it will be.

Ways to get ready to become a One Income Family:

Reduce the mortgage for a short time. See if you can change your repayments to interest only, a pregnant pause the banks may call it. This is a trick we used with our first, just takes the pressure off and it’s not a long term arrangement just enough to get you through 6 months or so.

Don’t be too proud to accept hand-me-downs! I remember wanting everything brand new for my first baby, but seriously they just puk on it, grow out of it or pooh on it! They grow so fast and if it is your first you are sure to be bombarded with gifts. Don’t fall in to the trap of spending heaps on baby gear, you can get some great finds on ebay and from family and friends, you can save a small fortune.

Learn to be one step a head of the game. If you have a birthday coming up in May start thinking about it in Apr, lay-by is a great option. Start a Christmas cupboard, every time you see something on sale that would make a great Christmas pres for someone, grab it and chuck it in the Christmas cupboard, in December you will have saved a heap of money and be super organised. Plan what you are going to eat and shop around that, stick to a menu plan and you will stop chucking out food that you never got around to using.

I went back to work after 10 months with my first, there was no baby bonus back then, not bitter much! Looking back I am glad I went back and made some more money as child care with one just doesn’t even compare to child care for three! I do remember feeling broke all the time while on maternity leave. It can be a hard transition from a fast paced double disposable income family to stepping back to basics on one income. That is the trick, think back to basics. If you need milk, can you walk to the shop? If you need a cot, ask someone who has a soon to be 2 year old. Think outside the square and keep it simple. Get back in the kitchen and cook your meals and make his work lunch, simple things that add up are easy to cut back on.

Leaving work doesn’t just mean you don’t go in to the office everyday you will also feel like you have lost a little piece of you, so its not for everyone. It probably wont be forever so try to enjoy your time at home and not think about the things you don’t have, focus on what you do have!

Renee

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