anyone else going to one income in a few months?

[firecat]

I am quitting my job at the end of December to stay home and get ready for baby, make sure everything is in line with my jewelry business (website up and running, jewelry for spring/summer made) and just take care of the things that need doing at the house before our new little one shows up.

I don't have maternity leave and I'm not planning to go back to work (hourly paid work that is, I'm going to be running my jewelry business tho which it's kinda iffy yet how much $$ I am going to make here since it is still in the wee stages) until baby is at least a year.

I'm a little concerned because although we figured our motgage payment and bills, etc. based solely on my dh's income, things are going to be tight. I mean tight!

I'm hoping some of you have some tips on how to make the transition easier. I don't want to be fighting about $$ when the baby is tiny and we are both exhausted!

[Mommy2Austin]

We only had a double income for a few months, but I know a few tips and tricks to save here and there!

-Cloth diapers are wonderful It's a small, upfront investment that pays back so much! I can give some specifics on that if you want just pm me!!

-Coupons are your friend and do shop the ads! We have 3 grocery stores in close range of each other, and if I feel up to it, I'll go to the farthest one from my house and work my way back if one has a better deal than another. I'm not using much more gas because its on the way home!!

-Making from scratch is good for most things! Besides tasting sooo much better it usually costs you a 1/4 of what the pre-made stuff does.

-Watch little habits. My hubby has a habit of getting fast food when he's out. It used to be getting hot dogs and a big gulp from Seven 11. It's a small cost that adds up to a lot of $$ at the end of the week/month. His was spending about $3 a day (if not more some days) times 5-6 days a week. so any where from $60-$72 a month minimum! Thats a lot of money! (I didn't quite realize how much until just now


If I think of any more I'll send them along!

[Canita]

I'm in the same boat. My hubby will be separating from the military about a week after our due date! Then it's all on me!! I'll have 6 weeks maternity leave with disability pay, but then have to go back so that we have money to live on! Hubby is going to stay home with baby girl until our move next summer (going back to my hometown after 5 years of living where the Army told us! )

I've never been the primary breadwinner....makes me nervous!!

I'd love to hear someone else's experience as well....some words of wisdom would be great!!

[Dea]

DH and I have been a one income household since we've known each other. It's a little strange. When we met I was working and he wasn't, but when we got married, I quit, we moved to CA and I can't work here.
I think the biggest thing is to really realize your budget and stick to it. Break it down to a weekly or even daily budget if you need to, and really understand how you can nickle and dime yourself. (like Mommy2Austin said about 7-11)
Also watch your credit, try not to get over your head. It's surprising the number of people think of their credit as an extension of their income, not as something they have to pay back. I would have customers who would think that the $5000 credit card I approved them for was THEIR money, when it was a loan from the bank. Soon I would be calling them for missed payments.

Anyhow I could prattle on for hours about this. I really did like my old job....

[mama_nym]

We went to one income when we had our first (and are now on our fifth with just one income, living in CT, and dh doesn't make much at all!) and probably spent more as a family of three than we do now as a family of six (almost seven!).

Some things that are easy to do and cut on expenses a lot are:
- thrift shopping instead of buying new (better for the planet as well)
- freecycling
- eating whole foods / not buying any/many pre-packaged items
- making a grocery price comparison book for the grocery stores in your area to find out which REALLY has the lowest prices/what the lowest prices are on things ... I'm lucky to have four major grocery stores within a mile of my house, so I can shop at two or three if necessary during the week taking advantage of each sale, stocking up on items that are on mega-sale, and I refuse to pay more than the lowest price I can for things
- find free/low cost fun activities to do with your family ... get a membership to a museum in your area that has a reciprocal admission program for other museums and science centers in your area, if you enjoy the outdoors try letterboxing or geocaching, borrow movies from the library instead of renting/going to see them, rent new releases from Redbox ($1 per night - just make sure you return it the next day!)
- start a weekly playgroup for babies your baby's age ... at first it will just be moms and babies getting together and moms chatting, but it will take up some of your time one day each week, keep you entertained (so you're not going out and spending money...even gas to drive somewhere costs money!), and will schedule in some grown-up conversation, which is VERY important to SAHparents!
- learn to make pizza and other foods you find yourself ordering out a lot

If I think of anything else, I'll let you know!

Oh - and borrow "The Complete Tightwad Gazette" from your local library!

[the elyse]

i will be quitting on dec 31st too. i also tried to figure out our finances dealing just with his income...TIGHT. but we're doing the cloth diapers, and all the other things M2A suggested. i'm going to be cooking at home for every meal, with one date night/eating out per month. yikes. it can be done!

[gingerbane]

We've been on one income since June. We plan to EC to save money. I also make A LOT of things from scratch, don't go out to eat very often and definitely WATCH that budget!

[slgt]

We're going to be going to one income (mine) when the wee one arrives. Thankfully, my company offers a great leave policy (13 weeks PAID, 8 of those at 100%!) and has other wonderful benefits that will help. We've been saving as much as possible in anticipation of being on one income, trying to get close to a year of dh's salary in savings.

But - we cook predominantly from scratch, and have a great big garden that supplies most of our summer produce. We're also making an investment this winter in a generator & a chest freezer (we lose power a lot) so that we can store produce for winter, in addition to canning.

My employer is also flexible enough that I can do more work from home, which will give DH more flexibility in terms of doing work for barter, etc. Plus staying frugal - being careful about not eating out much, making sure that we are making major purchases while we have 2 incomes w/out compromising savings, and planning, planning, planning...

[rliszkowski]

My last day will be in mid-January. I am really nervous because I had planned on going back to work. It turns out since I am part-time, I can only take 4 weeks maternity leave. We decided 4 weeks just won't be enough time for me. I am pretty conflicted about the whole things. I really like my job most days. We will have ENOUGH money buy not PLENTY of money like we do now. I stayed home for a year with my last baby and the depression was pretty severe.

[nolonger]

I'll be going to no income (living off savings) which is scaring me, so let me grab my "mother of teens" hat for just a sec and remember how it felt to go from two incomes to one.

I just didn't see how it was going to work, since one income barely covered the bills and the second one barely covered the day-to-day cash type expenses like food and transportation. The reality was that I just wasn't able to see all of the work-related expenses. I never thought we had an extravagant food budget, since we didn't eat out or order at the deli or anything, but of course we couldn't have the soup bubbling away on the back of the stove all day when we were both at work and I don't think I baked much, either. I didn't need a work wardrobe, although I did buy some new (thrift store) clothes postpartum and did not feel ugly, frumpy, or deprived. I didn't need a monthly bus pass either, and when exy and I have financial disagreements, I would frequently ask him for bus fare for outings that he considered reasonable and then walk and pocket the bus fare to save up for things that mattered to me.....like being able to bail exy out when he screwed up the finances to where we couldn't pay the electric bill.



It's really nice to know when all of you are planning on taking time off. I've been wishing I could for weeks and even though I can't, it's good to know what those who can consider reasonable so that I know whether my wishes are reasonable too or just a temporary case of the lazies.

[mom2tillie]

Congratulations for committing to staying home. I have so much respect and (jealousy) for you for doing it. I honestly can't imagine any more worthwhile endeavor.

I get 60% for 6 weeks, last time I took 12 weeks and it really wasn't long enough. This time I am with a new company and I will not be eligible for FMLA, so I am only authorized the 6 weeks of disability (also at 60%). I am still taking 12 weeks and if I get fired, I'll have to find another job. DH and I would love nothing more than for me to stay home but we just can't swing it until we pay some things off... the plan is that I will stop working when we have #3 or in two years whatever comes first, so we are really focused on paying off debt and building a reserve.
I worry that I will feel guilty about working when I finally do have the chance to stay home with baby #3...but I digress...

Thanks for starting this thread, I am taking notes for when the time comes.

-Iris

[BinahYeteirah]

bs"d

We'll be going to one income eventually. I do home-based child care through my local government. I get decent benefits; the maternity leave rocks compared to what I got when I lived in the US. I'm ending work on December 14! That's about 7 weeks before I'm due. Yeah! I actually think it will be important for my health. I stand and walk most of the day while taking care of the kids I watch, and I really push myself, staying up late cleaning and getting up early to do other things. I won't be able to laze around too much when I am off. I need to maintain a routine for my own two kids, but I hope I'll get a bit more rest by letting certain things go I can't when I'm working at home. I get 14 weeks paid maternity leave (full pay!) plus a couple days annual leave I have (and 38 weeks of unpaid leave). I don't think it will be too hard going to one income eventually, though, because I've been putting most of my meager income in savings for our move. So it's not really money we rely on to live, but we do sometimes use part of it for fun things. We are already pretty frugal, although we do spend more than we have to on food. I make most of our food from scratch, but kosher food is very expensive here and we do buy processed things from time to time. My family feels deprived if we don't. Like we buy one box of junky cereal per week ($8, because it's a kosher imported brand) and eat it on the Sabbath. It's our desert.

[LoveChild421]

We're in pretty much the same position, but I think I may have to go back to work after maternity leave (which is why I'm going to work up until I go into labor), even 3 months without my income will be very hard. I want to go back to school part-time and work part-time but we'll see how that goes money-wise.

How does FMLA work? Is the company required to pay you at all during that time? I was under the impression that you don't get paid but they are required to "hold" your job open and let you come back after being off for 3 months.

Some of the thing we're going to do: buy in bulk (diapers if you're using sposies, food for family meals, snacks, toilet paper, paper towels, etc.) and eat simple meals at home (crock pot is going to become my best friend) based on what is on sale at the store that week.

[Teenytoona]

We're going to be going to one income (mine) when the wee one arrives. Thankfully, my company offers a great leave policy (13 weeks PAID, 8 of those at 100%!) and has other wonderful benefits that will help. We've been saving as much as possible in anticipation of being on one income, trying to get close to a year of dh's salary in savings.

snip...

No way!! What an awesome leave policy! We get the FMLA unpaid leave here, but I've signed up for an insurance that covers about 50% of my income starting after the first two weeks. So, that will have to do. We will be on 1.5 incomes after those first two weeks.

Lovechild, your explanation about FMLA is the way I understand it. 12 weeks off, job is held, no pay, unless you've got a great company.

I'm taking somewhere between 8-12 weeks off. I'm the "good with budget" member of the couple, so I feel the need to not take too long off, but I do want to have some QT with the wee one, so I've not yet decided how long to take off. As it stands, Mr Toona plans to work from home and take care of the babe, so that's good. I think I could be a SAHM for a day a week or so, but I don't do so well with it, so it seems to work best this way.

[snozzberry]

I get 10 weeks maternity leave, then I'll probably be quitting right after that. Here's what we did to prepare for the possibility of going to one income. Some of this requires more time ahead than you might have, but you might be able to still do some of it...

• Use a financial program like Microsoft Money to track what you're spending. For example, we were able to see that we were spending $400-500 a month on eating out : and we've been able to cut that in half so far by limiting ourselves to a weekly $ eating out budget. Tracking what you're spending $ on is so helpful to getting a handle on things!
• For each category of spending/bills, ask yourself: What could we do to decrease this spending or eliminate it altogether? Even if the answer is something you don't like, record it so you can look at everything objectively. For example, we didn't want to get rid of cable. But we looked at our cable bill and asked this question. The obvious answer was to decrease our cable package or get rid of it altogether. While at first we didn't decide on that, simply admitting to ourselves that it was possible to control that expense put the idea in our heads to consider an alternative. We didn't cancel cable at first, but we did after a couple months of thinking about it and whether we were really getting much enjoyment out of the extra channels.
• For your top spending areas, try a week or a month of not spending anything in that area. See how it changes your life. Is it too difficult? After you adjusted, do you not notice it being gone? In the example of our cable bill, we lived with just watching 1-2 hrs of TV/week for a few weeks. And we realized that cable wasn't really adding joy to our lives in the end.
• Make it a priority to pay off all consumer debt first with any extra money you have. Our only debt now is our mortgage. This is essential because we won't have to throw money away on credit card/car loan/student loan interest every single month! For each spending area you decrease, keep track of how much you've decreased it by. Then put that money into paying off debt. The way I do it is as soon as we get paid, I transfer the money over to savings right away so it's like we never had it. Then when it's time to pay the bill, I transfer it back and add that amount to the minimum payment.
• Practice living on one income for a month or two--just put the other paycheck directly into savings and don't touch it that month. We haven't done this one yet, but we'll probably try in January because December will be weird with the holidays. I'm thinking that it will help us see where we still have to adjust our habits so it's not a surprise/added stress during the first few weeks/months of baby's life with us.

[nausicaamom]

One piece of advice I'd give is to not just write off every bit of extraneous spending as "extra" or "unnecessary" and to give both of you an allowance to spend on fripperies, fripperies that the other partner cannot comment on. For me it's a cup or two of Starbucks coffee a week - yes I can make it at home for cheaper (and oftentimes better), but the whole experience of going to the coffee shop by myself and reading or knitting for an hour is worth it's weight in gold - I am a better wife and mother for it. The same thing for the few bucks a week my husband spends on comic books - both of these things make the other sacrifices we make a heck of a lot more bearable.

The other thing is to keep a little bit of entertainment/take-out money in the budget every month if you can manage it. Don't discount your need to spend a little bit of time and money on being a couple together each month - even if it's just a movie rental and a pizza after you get the babe settled for the evening. That time alone spent on reconnecting as a couple combined with a meal that you or your partner did not have to prepare after a hectic week is again priceless.

[Mommy2Austin]

Originally Posted by nausicaamom

One piece of advice I'd give is to not just write off every bit of extraneous spending as "extra" or "unnecessary" and to give both of you an allowance to spend on fripperies, fripperies that the other partner cannot comment on. For me it's a cup or two of Starbucks coffee a week - yes I can make it at home for cheaper (and oftentimes better), but the whole experience of going to the coffee shop by myself and reading or knitting for an hour is worth it's weight in gold - I am a better wife and mother for it. The same thing for the few bucks a week my husband spends on comic books - both of these things make the other sacrifices we make a heck of a lot more bearable.

The other thing is to keep a little bit of entertainment/take-out money in the budget every month if you can manage it. Don't discount your need to spend a little bit of time and money on being a couple together each month - even if it's just a movie rental and a pizza after you get the babe settled for the evening. That time alone spent on reconnecting as a couple combined with a meal that you or your partner did not have to prepare after a hectic week is again priceless.

I totally agree with this! It's actually a wee bit of sanity in a very tight money'd schedule :P

[nausicaamom]

One more thing I thought of - be careful of both your money and time. Thrift shopping can be a huge money saver, but if you are spending hours shopping, it may actually work out to be cheaper to just bargain shop new. I never did much thrift shopping because I had a child who would not put up with it (when being worn he had to be in constant motion), and getting to the decent thrift stores was just too difficult for me. Same for making everything from scratch - yes it can cost less and taste better, but if you are spending hours making something when you can buy a decent almost ready-made version for a few bucks more that takes a quarter of the prep time, it's worth it.

[LoveChild421]

Originally Posted by Teenytoona

We get the FMLA unpaid leave here, but I've signed up for an insurance that covers about 50% of my income starting after the first two weeks.

oh I need to sign up for that! Is it only through your work or is it an outside insurance? We have NO insurance benefits whatsoever at my company :so anything insurance-wise has to be independent. It might not be worth my while since we'll be getting a pretty decent amount of foodstamps once I don't have an income but I'd like to check it out.

[anjanetteopal]

Right here with you. We're going to one income NEXT WEEK! And selling one car. We'll live off savings until DH gets a pay increase (hopefully May when he gets his masters degree if not before). We can do it!