As I told you yesterday we’re moving from a two income family to one income. This will take some adjusting on our part. If you’re considering moving from two incomes to one you should check out 9 Tips For Going To One Income from PT Money.
Among the things we have done so far to adjust:
- Changed my 401(k) contributions – I was contributing more than the company match for my 401(k). I’ve now lowered it to the company match. Anything lower than the company match and I would be missing out on free money.
- Roth IRA contributions – We lowered our monthly contribution to our Roth IRA’s. Yes it’s important to save for retirement but for right now we need to make sure we can handle our new budget constraints. If we find we have enough left over we’ll up the amount.
- 529 Plans – Again, it’s important that our kids are able to go to college but having money now is more important. We didn’t eliminate contributions, just lowered them.
- Tax Withholding – With my wife not working I plan to change my tax withholding so I can keep more of my paycheck. We’re waiting to hear back from our accountant for advice on what we should set my withholding for.
- Health Care – Our health care was through my wife’s job. I’ll have to switch it over to my company’s once my wife’s coverage officially ends. This will cost us as my wife had free coverage and I don’t. We had to keep this in mind when we worked out our budget.
- Look for ways to trim expenses – The Starbucks days are coming to an end. And now when we go to Target or BJ’s we’ll go in with a set list of things we need and not buy things we want.
- Work on finding alternate sources of income – We’re keeping an eye out to see if there are any ways to earn some extra money. I’d love to say this site would help support us but blogging isn’t as lucrative as some make it out to be.
- Go through all of our monthly bills/expenses – We made sure to see where our money was going monthly. We didn’t want to build a budget then find out we skipped something that would make us go over. Make sure you check for any automatic contributions or payments you may have set up!
This will be a big adjustment for us but it will be worth it. We’ve saved and planned and budgeted and I think we’ll be fine. A little tighter than we used to be but fine.
Do you have any other ideas?
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photo credit: Jeff Belmonte