Life Stages: Living on One Income

Today, one income can mean many things. It can mean being single, widowed and it can also be about life choices. Maybe a spouse wants to stay home with young children or care for an elderly parent. Maybe a partner wants to go back to school or start a business. Sometimes it is not voluntary, particularly if someone gets sick or loses a job.

Whatever the reason, living on one income is certainly challenging. With planning and commitment, however, it can be an insightful and rewarding experience.

Before You Commit, Ask Questions

If you lived on one income, how long could you pay your mortgage, rent, car payments, and bills? Do you have contingency savings to get you through the rough patches?

What Are Your Expenses?

Online banking is a handy tool to help you figure out how much is coming in and going out. Use direct deposit and pay your bills from your account to help you keep track of what you are spending. Direct a portion of your savings into a savings or brokerage account. For information on Wachovia Online Banking services, visit www.wachovia.com.

Cut Back

Living on one income means major lifestyle changes. Dinners out, spur of the minute travel, and shopping sprees will most likely be out of the picture. Talk with your spouse or family members about where you can trim the budget. Look at areas where can you save money, such as renting DVDs instead of weekly movie nights, cooking and freezing portions instead of calling for takeout, and shopping at a wholesale club instead of at the high-priced organic market.

Try It Out

Try living on one income before you take the plunge. Bank one spouse's paychecks and build an emergency reserve. See if one paycheck can cover mortgage, car payments and other expenses.

Don't Forget About The Future

Although it may seem like a luxury you can't afford, saving for retirement is crucial. Many people don't realize that a non-working spouse can still fully contribute to a tax-free IRA. Learn more about which retirement fund would be right for you.

The Good News

By living on one income you will be able to do what you most want to do: stay home with your children, go back to school, or start a business. With careful planning, and a little good luck, you may even emerge with money in the bank to get you on the way to a dream or two.