With the rising economic and social changes in Singapore, there is a tremendous increase in household labor divisions. As much as two-income households stand to gain much in the economic standing, there is much complexity that comes with the thought of living on one income. This is especially with the lifestyle changes expected to come with it. But then, does one have to rely on a money lender even when they can afford to foot some of the bills on their own? The answer is quite obvious, However, for most people, taking the first step into one income living is the most difficult of them all. How then do you go about it?
Set realistic goals
As much as it might seem easier, waking up one morning and deciding to change a given form of lifestyle is not that simple.Therefore it is logical to start with a few step by step changes and get to increase gradually. However, this doesn’t mean you have to completely forgo some family norms.For instance, if you are used to having three vacations a year, you can trim it to two in the first and second year then to one in the third and subsequent years.If there are children are involved, then it becomes more complicated as they take time to understand what is really going on. However, it is good to get every family member involved in planning. If the children are old enough, plan for a family session where you enlighten them on the changes to expect as well as the exact reasons for such measures. Remember there is no age limit to introducing a saving culture. The same case applies to expenses on grocery and other household expenses. Take time to come up with the most appropriate options to help you in curbing your expenses
See it as a form of financial security for your family.
As much as it is good to enjoy life, there is also need to plan for the unexpected. However, it is unfortunate that most Singaporeans are bad savers. This means that most of them are not prepared for emergency situations such as a partner getting laid off at work, accidents, retrenchment and the like. Do you take time to imagine of what would become of your life if for unexpected reasons your second source of income ceases to exist? Would you start depending on a money lender to clear your bills or do you have some money saved up somewhere? For most people, their family’s well being comes first and the same case applies to you, then this should be enough motivation to kick start tour one income dependant household expenses.
Assume that the other source of income doesn’t exist at all
Well, this is a somewhat difficult decision to pull through especially if you expect to see your monthly income in your bank account at the end of every month. However, to avoid temptations into indulging in unnecessary expenses, why not try diverting it to somewhere else? For instance, if you have a savings account somewhere, you can direct the other income to that or better yet your pension account. The same case applies to any other money lender issues you might have. The secret is to remain focused on the main objective and strive towards achieving it no matter what.
Now that you are set to start your one income journey, what do you stand to gain?
Secure your children’s education
Over the past years, the costs of education have been on the rise, and this does not seem to change anytime soon. In fact, you should expect to incur more expenses as the years go by. As a parent/guardian, the best gif you can ever give your children is the exposure brought upon by education. By ensuring that their education is guaranteed up to university level is one way of achieving your responsibility. With the other set of income. you and your partner can decide to pump that into the educations plans of your child/children. Through this, you can rest assured that nothing can push your beneficiary into the arms of a money lender in case something bad ever happens to you.
Forget that car loan and purchase that dream car with your own cash.
Nothing beats the feeling of buying that dream car from your pockets without the slightest assistance from a money lender.There is actually nothing impossible with better planning. Somethings in life come with big sacrifices, and you have to decide to make one for your happiness. If you can comfortably operate your household with one income, then there is nothing stopping you from dreaming big.
Get rid of that lifelong mortgage mentality
Who said that you have to be like everyone in Singapore and live to pay your money lender mortgage all your life? You actually have a choice to pay in two to three installments with a one income living option. Well, it might sound impossible in the beginning, but it is not as some people have made it. The peace that comes with staying free from a money lender interest is worth every thought. So you might want to consider this option as soon as possible.
Get saved up for emergencies.
We can never run away from emergency situations. Some unnecessary expenses tend to pop up when you least expect. Think of the car and household repairs, that most anticipated holiday destination that your children cannot seem to get off their minds. What about those emergency medical situations that your health coverage cannot manage on its own? Knowing that you have some money somewhere for such cases gives you the peace of mind you deserve.
In conclusion, there are so many benefits that come with two-income sources as a couple. But then that does not mean you have to stop saving for better days. Remember you will not be young all your life, so it is wise to save for those retirement days. Saving is a choice just like any other, so if you can decide what to buy and what to forgo, then there is no reason as to why you cannot be able to live on one income as a couple and save the other for better longterm investments.