Debt is a huge problem today, but what can you do to avoid it? If you are living on your own, in many cases, living on one income may be your only option. But more and more this is becoming more difficult. People have to live with a roommate or maybe even several roommates. It is less common to see stay-at-home moms, especially after children reach school age.
Living on one income is something you should give serious thought to if you are part of a couple. It is just part of being prepared for the future or for the unexpected. We cannot always predict when we may become unemployed or disabled. In order to be able to weather anything financially, you have to think about what could happen and how you can be prepared for the unplanned.
You may want to try a few tricks to try to save more money. Watching your bank account grow can be quite seductive and once you get started, you will find yourself looking for ways that you can cut back on your expenses and find ways to make extra money. If you are not saving any money at the current time, that is where you need to start…by opening a savings account and making the commitment to pay yourself first.
Paying yourself first can be done by having the money put into a savings account as part of a direct deposit or an automatic funds transfer. Statistics show this method works best. If the money never makes it into your hands, there is a much better chance it will remain in your savings account. This is something you have to make a priority. Ten percent makes a good start for your emergency fund. If you cannot afford 10% start with 5%. Start with an amount that you are going to be able to save and not touch.
Even if you are following a debt management plan, saving should also be part of your plan. Money you save will always be there. Credit cards can be taken at anytime without explanation. Once you have been contributing to your savings plan consistently, begin to increase the amount you are putting into the account. If you can increase what are putting into savings over time, you will get to your goal of being able to live on one income.
If you and a partner are able to survive on what just one of you make, you will have the power to weather the majority of financial situations that you may encounter.