How to Live on One Income as a Family

During our almost 12 years of marriage, my husband and I have had a range of income levels.

We’ve lived on one income, two incomes, larger incomes and smaller ones.

We’ve lived in rentals and we’ve purchased 3 homes (not simultaneously).

But for several years of our marriage, we’ve lived off of one income. Many of those have been as a family of four.

We have been blessed to never experience true poverty or need, thank the Lord.

Perhaps you or your spouse are thinking of leaving your current job for personal or health reasons. Maybe you want to become a stay-at-home-parent. Or maybe you want to pursue a startup or open your own business.

There are several reasons you might be considering switching to one income. But you may be wondering, “Is it even possible?”

The answer is yes, it’s possible! And no, it does not require you to only eat Ramen noodles for the rest of your lives.

Sorry you get a bad rap, Ramen noodles. I actually happen to like you.

If you’re worried about making the switch, I’ve rounded up some helpful tips for you.

Important note: I don’t discuss debt in this article because it’s not about getting out of debt. This is how to downsize your living to fit one income. If you have substantial debt, I would recommend making that your top priority before making life-altering decisions.

Ready to find out what they are? Let’s dive in.

1. Set your priorities.

Life fact 101: You can’t do it all.

If you doubled your current income, you would still have limitations. We all do. Those limitations become more pronounced when your income shrinks.

Limitations are not bad, but they require choices. You have to say no to some things.

One of the most important things you can do to successfully live on one income is to set your priorities. Figure out where you want to spend your money.

I absolutely love to travel. Each trip is its own unique adventure. I fall in love with places faster than celebrities fall in love with each other. It’s ridiculous. But you know what?

Travel is expensive.

So I say no to manicures. I don’t color my hair. I buy the cheapest toothpaste I can find. My husband forgoes the NFL network (and he loves NFL football). We drive used cars for as long as they will work.

We make those choices because we would rather spend that money on travel. We never regret money spent on memories. So trips make the list when other things don’t.

Your list will look different than ours. Someone else’s list will look different than yours. And that’s a good thing.

Our spending reflects our priorities, so we should think through what those are and spend accordingly.

2. Set a budget.

You have to know what’s coming in and what’s going out to make informed decisions. The best way to do that is to have a budget and stick to it.

What if you’re not the kind of person who loves spreadsheets? That just means you’re not a nerd. (I’m joking. Some of my favorite people on this planet are ALL about the spreadsheets!)

If you aren’t a big data analyzer, that’s okay. Make it simple. Know what you have coming in and make a list of your fixed expenses (rent, phone bill, etc.). Estimate your variable expenses (groceries, utilities, etc.). Subtract. If you can’t make it on that amount, reduce expenses.

Many people like to use Dave Ramsey’s cash envelope system. We’ve done that in the past and liked it. It’s very concrete. If you are too loose with your card, I would recommend using it.

But whatever method you choose, a budget is a big part of making one income work.

3. Take advantage of free entertainment.

I loooove free entertainment for several reasons. First, it usually means you are getting outside. We need that Vitamin D.

Second, it usually involves some type of physical activity. Much healthier than staring at a screen.

Lastly, it usually involves conversation. Our family grows closer and builds memories with many of these activities.

So why wouldn’t you take advantage of free entertainment?

Here’s a short list of activities that are almost 100% free. The only money you might have to spend is a little gas money:

• Visit the public library (one of my favorites)
• Go to the public park
• Run/walk around the neighborhood
• Play tag or throw around a ball outside
• Visit one of 400 free national parks (or a state park)
• Visit free art exhibits at local colleges
• Dance party at home listening to free music streaming service

4. Let go of others’ expectations.

This is a biggie. And it’s extremely difficult. When your coworker walks in with a new Apple watch or goes on a nice vacation or has their kids involved in 30 extra curricular activities, you start to feel that pull. That familiar pull of fitting in.

It is then you have to let go and remind yourself of what’s most important.

Ask yourself, “Can I still live a good life without this?” Most of the time, the answer is a resounding yes. The fact is, we aren’t going to remember most of our purchases. And the ones we do? Many of those we’ll ridicule.

Avocado green appliances. Wood paneled walls. Acid wash jeans. All the VHS tapes. Letterman jackets. Blonde tips. Butterfly clips and ice blue eyeshadow. CD-ROMs. Cropped sweaters. Crocs.

Some of these are actually still a thing. But trends never live forever. They die. Painful deaths.

We cannot live out our purpose while chasing other people’s lifestyles.

So let it go. Be different. And be okay with it.

5. Be generous with others.

It doesn’t matter what your income is, let me be extremely clear:

Generosity is an essential part of living a worthwhile life.

You will cheat yourself if you don’t give to others. And when you feel like you’re too poor to give, that’s the time you’ll benefit the most from it.

Giving makes us appreciate the sacrifices others have made for us. Giving connects us to other human beings and cultivates goodwill. Giving will improve our lives.

Now, what we can give might vary widely from person to person. But even if it’s a few dollars, giving to someone else will make you a better steward of your money (I realize giving is not just monetary thing, but it certainly includes it.).

Do you have tips for living off one income? Share those with me in the comments below!