Do you live on a single income and find it hard to manage financially? Personal Loans Now provides some fantastic tips on how to live on one income whilst still enjoying the things you love.
- The average income for families who have two working adults
- Ways to cut back
- Coupons can save up to 30% of your expenses
- Downgrading on TV bundles can save money
- Conclusion – How to live on one income
Nowadays, it is increasingly important for families to be able to live on one income. While the average income for families with two working adults is £40,000, families with just one wage earner might have to manage with much less. Families that are used to bringing in two incomes and having the ability to pay for everything they need, cutting back to living on one income can happen suddenly and may affect the family. To avoid this, and to be able to live comfortably on a single income, below are four suggestions that should help.
Tricks for Living on One Income
Living comfortably on a single income is possible if you begin with cutting back on unnecessary items. For example; takeout dinners and snacks barely used gym memberships and other memberships to clubs and institutions. This alone could save you a lot of money.
Start by looking through your statements for the past couple of months and reflect in your spending habits. Highlight purchases which you could consider as “wants” versus “needs.” Could you have managed without this purchase? Was there a better choice? Can you notice a pattern emerging when you examine all of your frivolous purchases? If there is, it is likely to be a bad spending habit that you need to break.
Take Advantage of Sales and Discounts
In the past when you had multiple sources of income, you may have never had to use coupons. However, you might have to look into using these now. With coupons, you can save up to 30 percent of your expenses. The same goes for clearance sales, rebates and reductions.
Take the time to find out the popular couponing strategies. Attempt to construct your menu for the week based on what’s on sale in the supermarket instead of planning first and assessing prices afterwards. For larger purchases such as furniture or home improvement jobs, check to determine when it is seasonally best to buy them. This can help you to avoid taking out a home improvement loan to cover the cost of the item. Saving money in this way can help you build up your emergency fund which will surely prove worthwhile in the future. Many products have a particular time of year when they will be cheapest. For example, outdoor furniture is usually the cheapest at the end of summer when there is the least demand.
Cut Down on Your TV Subscriptions
Think about this: Just how frequently do you watch your favourite programs in real time? Do you typically record them and then watch them later? Rather than having extensive TV bundles, why don’t you look into cutting back in favour of something more reasonable?
Many stations are available through their website for free 24 hours after broadcasting. Your patience may pay off big if you downgrade to simple streaming service, the majority of which are less than £15 a month. If you can not bear to part with your cable bundle, downgrade to one that matches about 60 percent of your needs and settle for that. Perhaps after a couple of months, you will realise that you only need a smaller cable and you may downgrade even further.
Just Buy What You Can Afford
If you use a credit card on a regular basis and always carry a balance, it is vital to break the habit, particularly when you’re budgeting using one income. The instant gratification you get from getting what you need now is a fantastic feeling, but it wears off shortly. Instead, you will be left with debt hanging over your head and the extra charges for this convenience.
If you have to make a large purchase, save up for it over time. This not only helps you to be able to come up with the necessary funds to pay for the item but it also puts the cost of the item into perspective. If you need to save up for a while, it will help you reassess the significance of the expenses.
Living on a single income can be difficult especially when you are accustomed to getting everything you want if you are used to living with two incomes. With the four tips for cutting back provided above you will still be able to enjoy the things you love and at the same time live well within your means without having to take out low rate personal loans to manage financially from one month to the next.