Despite some trying economic times, the majority of two-income earning families could absolutely find a way for one of the parents to stay home if they adjusted their lifestyles to a single-income earning family.  What happens for most people is this:

The More We Earn, The More We Need to Spend.

It’s pretty simple, actually.  I personally know a family who insists that both parents must work in order to raise their family and pay the bills.   They have three children, one in school and the other two in daycare while both parents work.  Daycare for the two younger children costs $320 a week.  It seems obvious to me right away, that if one parent was home in that family, they’d save $320 a week in expenses, immediately.  That’s $1280 per month! I also know that the wife’s income, after taxes is about $1800 per month, so after paying daycare expenses, she is really only earning $520 per month, or $130 a week (for 40 hours of worktime).

Seems to be, that if the wife was to stay home the way she says she would like to, she would only need to save an additional $130 a week in order to live off the husband’s income- since they would no longer be paying $1280 a month for daycare out of her paycheck.

Because both parents work full time, they also have a housekeeper come in twice a week to help keep the home tidy.  I don’t know exactly what they pay the housekeeper, but it seems the average hourly rate for housekeepers is around $15.  I can make an educated guess that the housekeeper is costing them $60 to $90 per week, based on 4 to 6 hours. 

They’re also probably too busy to concern themselves with using coupons at the grocery store or looking for sales, clearance prices and discounted items.  Their lifestyle would not even have to change all that much to accommodate the wife staying home with the children- which is where she wants to be.  (I’m all for parents working if they want to work- but I can’t stand it when people work when they’d rather be home with their children, just because they think there are no other options financially).  There’d no longer be a need for full time daycare for two children, and they wouldn’t require a housekeeper.  Those expenses alone are almost equivalent to what the wife makes a month!

There are always ways to cut back on your living expenses.  Some may not seem obvious until you actually sit down and take a close look at what you pay for each month, and why you  need it.  It could be that you built your lifestyle around two incomes; and that with very little changes, you could very well afford to be a stay at home parent in a one-income home.

Can’t Raise the Family on One Income? Stop Wasting Money. was created by and is property of American Consumer News.

1. Find an affordable place to live.  You may have to give up your dreams of the huge two story home on several acres of land temporarily, but you can still find a comfortable home within your budget.
2. Stop using credit cards or pay them off every month.  Easier said then done as the temptation to use credit cards can be high when times are tough; but limit your debt to a mortgage payment and you’ll find it easier to make ends meet.
3. Pay your bills on time.  Whenever you have any kind of debt that you’ve financed, be sure that you are making the payments on time.  This will avoid late fees and unnecessary finance charges.
4. Don’t finance cars, buy them with cash.  This is extremely difficult for most people who are used to just going to the dealer and signing for their car; but if you buy a used car with cash, you can then save some money until you have enough to buy the car you want.  You don’t need the shiniest, newest vehicle on the block- you need one that gets you safely from point A to point B.
5. Create an emergency savings account.  Many people will tell you to have three months worth of income set aside in case of emergencies.  Save whatever you can, as often as you can.  Emergencies happen but most of them are handled better when you have the finances set aside to deal with them.
6. Make and follow a budget.  It may seem like a no-brainer but most families do not have a budget (or if they do, it’s on paper and isn’t followed!)  Decide how your income is to be spent each month, and do everything you possibly can to stick to it.
7. Holidays and birthday’s come at the same time every year- make it part of your budget to plan for them.  Remember you do not have to spend a fortune to give people meaningful and useful gifts.  If you like to give fruit baskets for Christmas, perhaps you could make your own or make jelly to give in decorated jars instead?  If you like to buy toys for the children in your family, buy them when they are on sale and set them aside until the special day.
8. Use coupons and plan your meals around what is on sale at your local grocery store.  Set a monthly food budget and if you run out before the month is over- learn to use what’s left in your house.  You will get creative with meals but you’ll learn and be a better meal planner the next month!
9. Buy movies, books, toys and other items at garage sales for pennies instead of buying them new.  You may be able to buy clothing and furniture at substantial savings, as well.  Often the items look new!
10. Get rid of cable television- do you really need 123 channels?  The children can watch the movies you’ve gotten from garage sales or PBS; and you can still keep up with the happenings by watching the news on the local channels.
11. Visit your local library to borrow movies instead of renting- it’s free.
12. If you can’t afford a weekly entertainment budget, find activities for the family that don’t cost money.  Have a weekly game night at home with popcorn or a snack you don’t have any other time; trade babysitting with a friend to enjoy a quiet evening at home (without the kids!) with your partner.
13. Don’t make unnecessary trips with your car- plan your errands and outings so you can do more in one trip and save on gas.
14. If you like to go out to eat- choose to go out for breakfast or lunch instead of dinner.  The meals are usually much cheaper than dinner prices.
15. If you are going to travel and need to stay in a motel; call the motels directly to negotiate rates.  When you use the online reservation systems or call the national 800 number, you are limited by the published specials.  Often, speaking directly to the motel customer service will result in bigger savings and discounts.
16. If you live in an area where preschool costs money, have a twice weekly playgroup at your home for your preschool aged children.  Organize crafts and activities for the children- it will cost less than sending them to the preschool and the results will be almost identical.  You can work with your children to teach them songs and letters and prepare them for kindergarten at home, for less money.  (And have a great time doing it!)
17. Consider having one vehicle for the family instead of two.  If it’s possible for the working adult to use public transportation to and from work; get a ride with a co-worker; or for the stay-at-home parent to drop the working parent off at work each day- it may be financially feasible to have a single family car rather than two.
18. Conserve energy- turn off lights, radios, and electronics when not in use.  Use rechargeable batteries.  Keep your heat set at the lowest comfortable setting (even if it means wearing a sweatshirt and slippers to make it more comfortable!)  Replace lightbulbs with energy-saving bulbs. 

No one who is raising a family on one income will tell you that it’s easy.   It does require effort and planning but for most people- the benefits far outweigh the challenges.  You’ll see your children’s first steps, talk their first words, and raise them the way you want to raise them- not to mention avoid paying daycare costs.   Sacrifices are necessary to live on one income these days, but the happiness you’ll experience is undeniable.

18 Ways to Raise a Family on One Income was created by and is property of American Consumer News.