How to thrive when going to one income

Whether you suffered a job loss, or are going to one income to stay at home with the kids or start a business, it can take some tact to make ends meet. David Sant from Cyprus Credit Union stopped by with some useful tips to help you stay out of the red during your transition.

 

  1. Do your homework
  • How will this affect your lifestyle
  • What adjustments need to be made to cover bills and basics

 

  1. Budget, budget, budget
  • Find the budget that works for you, there are many to choose from
  1. Envelope system - cash in envelopes for each category
  2. Zero balance - Goal to be at zero dollars at end of month

 

  1. Meet with specialists
  • Will this change your tax brackets?  What impact will this have on your deductions?  Schedule a meeting with your tax specialist to answer these questions
  • What is the impact on your retirement plans?  Schedule a meeting to plan retirement based on one income.

 

  1. Identify where you might save
  • Savings from child care costs
  1. Daycare can cost $10,000 on average a year
  • Savings from eating at home

 

You can find more resources for important financial decisions at cypruscu.com.