After a baby is born, a partner gets sick and can't work anymore, a partner dies, or a couple gets divorced, it can be very hard to get used to living on one income. For couples who are used to living on two incomes or for people who are suddenly single again, the shock is the same. It can be hard to keep track of your spending, let alone come up with ways to make big cuts. At least with a partner, you have someone to talk to about it. Newly single people will have to get advice from family or friends, if they want to talk about their private finances with them. Don't be scared off by the big picture or the big numbers. Go to cbdeluxe, which is my favourite ebook store, and you'll find a lot of information there. When I got divorced many years ago, I was back on my own, and the Internet wasn't around yet. I found that taking small steps was the best way to deal with the changes.
Set your priorities. Don't think of a budget as a list of things you can't have. Instead, think of it as a way to organise your priorities. Write down everything you have to pay for, like your mortgage or rent, your car payment and registration, childcare (if you have kids), and your utility bills. The biggest mistake you can make is to not make and stick to a realistic budget. If you know how much your fixed costs are, you can decide how to spend the rest of your money on things like clothes, furniture, trips, etc. If you need more discipline, put the money for fixed costs in a separate account that you can't touch. Look at other regular expenses like expensive phone bills and gym memberships that aren't being used. What do you spend on work days, like if one of you or both of you buys a $3 coffee every day and a $10 lunch? That's $130 a week, or $6240 a year if you work 48 weeks.
One of the best places to save money is on your car. If you're in a couple, try to get by without a second family car. If you're single, you might want to sell the car and try to get around on public transportation if you can. Plan ahead is another thing that couples who want to have a baby can do. If you're going to take a year off, try to pay more on your home loan than you need to in order to cover the payments for that year. In the short term, you can refinance the family home by extending the loan for a longer time if someone gets sick or loses their spouse. Another choice is to downsize. Just make sure that your loan fits your needs and is a good deal. Know what benefits you have. If you are raising a family but don't work full time, you may be able to get help from the government. Again, single people should check to see what kind of help the government has for them.
In all of these changes, don't forget yourself or yourselves. Set aside some money so that you or you and your partner can spend it on whatever you want. It's important to have money you can spend without having to explain it to anyone, even yourself. It doesn't have to be a lot, even $50 a month will do. It could be getting your nails done or having lunch with the "girls." It could be anything that makes you happy. Lastly, when a mother takes time off to have a baby, she should try to spend more wisely. Use secondhand shops. They are a great place to find cheap toys, clothes, and tools. Set up a pool of babysitters with other parents in your area to save money on babysitting costs. Casual barbecues are a great way to have more people over to your house. Picnics, walks, and trips to the beach with the family are all fun. Check the Internet most of all to see what's going on in your area. You can live on one income. I've done it for years with no problems. Best of luck.
