Cutting Down to One Income?

Do you hate your current job and want to quit? Is one of you going back to school? Did you recently lose your job? Whatever your reason, living on one income can be a scary and trying time! Here are some surefire tips to help you cope and live on a single income without finding yourselves a pinch!

Make a spreadsheet and track exactly where your money is going. Once you see where it actually winds up going, you can see where you can cut back and what the bare minimum you need each month is. This means rent/mortgage, utilities, insurance, car payments, food. Now, here are some way to cut back and still live comfortably!

Don't eat out all the time - have fun cooking together, it's bonding time! Try eating out only once a month instead!

Don't go to the movies in the theater - Do you have to see that movie the day it comes out? Save the money, rent it later or get it free from your library!

Cancel the cable - when you work it out, it's about $2/day for cable. Yikes!

Clip coupons! It's free money! Why not?

Shopsales and buy off brand. You can still look good and be a spend thrift!

Group your errands together to save - as you are making your weekly list of things you need, group them in same areas. You'll save gas and money!

Pay your bills on time and online - Paying online saves on stamps, and most will even remind you when they're due so you never forget to pay one.

Usecredit cards ONLY for emergencies. Do not keep a balance on plastic.

Ifpossible, share a car. It will save on insurance, gas, and repair expenses!

Now, here's some general tips to hold onto as much of the money you make as you can and have it be there for you (plus some!) when you need it.

Pay off your credit card debt asap! - Think of it as throwing money out the window due to interest!

Save for retirement in a Roth IRA- The money is taxed as it goes in, so once it's in there, it's multiplying like rabitts. That's like free money! (A plus for this is that [one time only] you can take out 10% penalty free to use for the downpayment towards a house. The catch is you have to have had the IRA for 5 years, so get started!)

Put money in short term CDs. It earns interest rates that are astronomically higher than savings account rates and you don't have to wait until you retire to get at it.