There are many factors to decide prior to going from a two-income household to a one-income household. What is gained and what do you have to give up?
The first factor is trying to determine what you really earn with the second income. Here is a list of possible expenses that you must deduct from your gross pay income:
- Gas Money
- Increase in car maintenance
- Child care (If you have a child)
- Clothing for work
- Lunch out
- Misc.Office Gifts
- Dinners out due to lack of time or lack of energy
- Other work related expenses (Union dues, etc…)
Once you deduct all of these expenses, you will have a honest picture of what you really make.
The next factor is deciding whether you can live without the benefits. These may include health insurance, retirement account, life insurance, and more. For example, if your job provides the only health insurance for your family, you may not be able to live without that benefit.
The third factor is you are willing to give up some of the luxuries. Your family may have to eat out less. You may lose a lot of the social aspect that comes from the jobsite. You may have less money to spend on the extra treats for you and your family.
The final factor I will discuss, though there may be others in your case, is whether your family can still pay all the bills. If you leave your job and find that your family can not pay the bills, your family will go through an unnecessary hardship until you can become reemployed. Know what your bills are (write them down) and then see if the remaining income can pay all of them.
If all these factors workout and you decide to go through with leaving your job, make sure your spouse is comfortable and supportive of the idea. However, do not worry what others may think. The decision is a family one and it is nobody else’s business.
Keep checking back for posts on ways to earn money at home and tips to save money.