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Are you trying to figure out how to make it on a single income family? According to the Bureau of Labor Statistics, 81% of families have at least one employed member. While that initially sounds like great news, it’s important to keep in mind that a fair number of families have only one source of income to rely on, meaning that finances are tight for plenty of families in the United States. Running a single-income household is like a never-ending balancing act, but it doesn’t have to feel like a marathon. Check out our five smart tips for living on one income!
Establish a Monthly Budget
Financial stability without a budget is nigh impossible. To get started, you’ll want to look at your most recent financial statements. How much did you make within the last few months? How much did you spend? Once you have your total expenditures laid out, you should be able to see where you can make some cuts, no matter how small. That Starbucks trip you take every week? That’s an easy extra $20 per month!
Create a Financial Vision Board
Let’s face it, looking at your finances can be a bit bleak. You’ll want to have something to balance out that negativity. Creating a vision board is a fantastic solution. Your vision board maps out your ideal financial future and gives you something to strive toward during tough times. Saving right now might feel tough, but you’ll agree it’s worth it when you and your family are on your dream vacation.
Skip the Name Brand Products
Here’s a fun fact: Oreos and the store brand knockoffs are the same products! So why does Nabisco charge so much more? Simply put, because of name recognition. The process is called private-label selling, which allows stores to slap their name on a product and brand it as its own. Buying store-brand products is a great way to save money without sacrificing quality.
Consolidate Your Debt
The average household has around $137,000 in debt, making it tough for the average family to get ahead in the economy. Consolidating your debt might help you cut down on interest rates, thus saving you money in the long run. We recommend that you find out more about the necessary qualifications before applying, as you’ll increase your odds of approval.
Start a Side Hustle
While side gigs like driving for Uber or taking freelance jobs won’t make you rich by any means, they can give you a little extra breathing room. If you have an interest or a skill, it’s time to put it to use! Look for odd jobs that interest you online, or sign up with a service. An ideal side hustle should allow you to create your own schedule, meaning you can work as much or as little as needed.
Living on One Income: How to Live a Comfortable Life
Upon first glance, living on one income can seem like a near-impossible task. And make no mistake, it isn’t easy. But with these tips in tow, you’ll have a great head start toward maximizing your finances. Want more tips on giving your family the best life no matter what? Make sure to check back with our blog for more great content!