Work Less, Enjoy More Free Time, and Have More Spendable Income

In today's struggling economy, job losses, the fear of job loss and news of widespread poverty are causing people to tighten their financial belts. But many are still losing their homes. Why? Currently, foreclosures are at an all-time high. How did the families of the 50s and 60s thrive on one income, and always seem to have everything they needed? What did they have that we don't?

The debt cycle
It doesn't take a genius to see why families require two incomes these days. Heating and cooling suburbia's average 2,500 square-foot home, purchasing (maintaining and repairing) power equipment to handle lawn or landscaping needs, and paying out numerous unmanaged and unnecessary expenses have driven most families to two incomes.

Breaking free of the debt cycle
Sometimes, an unfortunate event such as a job loss actually turns out to be the best thing that can happen to people who have been living above their means, or at the top edge of their means. It is these very individuals who suffer great material losses when their household income decreases for any reason, such as a pay cut or a job loss. The best thing for these families is to simply start over, and implement the strategies outlined below.

How did they do it in the 1950s and 1960s?
But really, how did they do it in the 1950s and 1960s? How did so many families live so well on one income? The secret of their success still works today. Read on.

Decades ago, the average American family owned only one car. In today's dollars, that's an extra $600 per month (for gas, insurance, and car payment) more in spendable income than today's families. They did not have a home with twice as much square footage as families feel they need today, yielding an average monthly savings of $500, compared to what families pay today for homeowner's insurance, mortgage, and maintenance. Because the homes of the past were smaller, their utilities were much lower by an average of $130 per month. Additionally, they did not have central air conditioning, which gave them an additional $60 per month over today's families. Most people actually mowed their lawns with a manual rotary-blade push-mower, an additional monthly average savings of $110 in riding mower costs (including maintenance and repairs). The average weekly daycare cost for one child is $150, or $600 per month. Today's families eat out an average of twice per week, which is usually done while dashing from one event to another, and not actually as a family. This accounts for an additional $50 per week ($200 per month) above what home-cooked meals cost. Years ago, the average high school graduate did not expect an automobile or similar valued gift from his or her parents. People's expectations have exceeded their pocketbooks.

So far, the unnecessary monthly expenses described above add up to a whopping $2,200, or $26,400 annually, which is take-home pay for an individual earning $35,200 per year.

Many are caught in this vicious cycle. The average American family today is financially strapped with two incomes, the reason being that they feel compelled to financially maintain a high level of luxury, waste, and timesaving conveniences, all of which create the need for that second income.

The only way to break free of this cycle is to simply bite the bullet, tighten the belt, downsize, and live within one's means.

Living on less is a lifestyle that brings people together, allowing them to have time to live as a family. Families that are not financially obligated to spend most of their time generating income actually have more time for each other. In fact, living on less encourages creative thinking, such as ideas for home businesses in order to be able to work at home, eliminating the need for more than one car. This type of creative thinking also helps people to discover more efficient and economical methods of living and working that save money. Essentially, living on less teaches people a frugal lifestyle, which means spending less of our lives working, and more on living.