How Do You Live On One Paycheck?

 This, or variations of this question, is the one I get asked most about money management.

It’s really simple. I love simple.

You have to decide you’re going to do it. If I was going to start running (a dream I’ve always had) I would have to decide no matter what, I’m running. If I did that, it wouldn’t matter what the weather was like or how I felt that day, I would run. I haven’t made that decision in my mind, yet or I would be a runner. Mind over matter.

Have a plan. So many people look at the numbers and say, ‘I think it’ll work…’ One spouse quits  and six months later they wake up with $20K in credit card bills because they didn’t have a plan. Save 3-6 months of expenses in an emergency fund, for true emergencies. Make a zero-based budget (where you have no money left over at the end of the month.) If possible try it for a month before you totally give up that other paycheck. There is lots of help out there, Dave Ramsey’s money plan is my favorite. His website is filled with free helpful advice. Check it out.

Cut costs.Coupons are fine, but I don’t clip them. I just shop at Aldis and Walmart every two weeks with a list made from a menu. Use only basic cable. Cull your phones. Do you need a landline or cell phone. Buy used clothing. Give homemade gifts. Set your thermostat higher in the summer and lower in the winter. Eat out only once a month. Cook from scratch. Simplify your families activities (your probably too busy anyway, gas and time are worth a lot, not to mention peace of mind.

Look at where you can save thousands. Refinance your home. Set it up on a 15 year fixed mortgage and pay it off early. Get the best deal on insurance for your car and home. The only life insurance you need is term life. Whole life and other variations are just scams.

Pay cash for used automobiles. That new car you bought or worse, leased, loses value faster than I can eat a biscuit. It’s like taking $100 bill and throwing it out the window every week. Lots of people are driving their retirement (if they aren’t eating it.) You can get a great used, low mileage car at a fraction of the price and taxes and insurance are cheaper. 

Once you start living on one paycheck, you’ll realize how much simplier your life is.

If you ask me…a simple life is a rich one.

Good Luck.

Sandhill Sis

Tags: budgets, choosing to stay home, money advise, money management, one income, Simple Money, sticking to a budget