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One income

January 17th, 2007 at 04:25 pm

With the possibility of one income I spent a bit of time playing with a spreadsheet to see how we would cope long term (at the moment we have some in income protection insurance coming in as my dw was laid off last Oct - but thats good for 12 months). I did my first draft of a 2008 plan with one income, and provided we save this year for the big yearly expenditures, insurances, taxes, services we should be OK I think if we stay on budget - and this year (so far) we are showing that we can stay on budget - possibly even under budget. I had a 'feeling' we could get by on one income - what I did today was to see would we still be able to save a bit as well - or would it all just pile up on top of itself in 2009 - It seems crazy to be talking about 2008 and 2009 now - but we are considering my dw staying out of work to mind the kids and I'm trying to see if we can really afford this or not. For the moment it gives us something to talk about at home - the joys of budget spreadsheets!!!

Posted in Budget & Planning | 3 Comments »

3 Responses to “One income”

  1. beans6 Says:
    January 17th, 2007 at 04:45 pm 1169052326
    1169052326

    Hi dont forget that when you have a second income it puts you in a higher tax bracket.There use to be a website to help you figure out how much of the second income you were actually getting (babysitters,driving,taxes).Anybody have that website.
    Goodluck, -- sounds like your doing great.

  2. miclason Says:
    January 17th, 2007 at 05:24 pm 1169054655
    1169054655

    Also take into account that you won't have to spend as much in "outside" childcare anymore, so add that "savings" to your budget!

  3. monkeymama Says:
    January 17th, 2007 at 08:13 pm 1169064832
    1169064832

    Agreed - you could perhaps raise your withholdings and take more home. I Take home 90% home with a big mortgage in Cali & 2 kids. I got a big "raise" when we went down to 1-income - just disciplined enough not to depend on big tax refunds...

    In a lot of cases a 2nd wage costs more than it brings in. Hopefully that wasn't your case - not sure where you stand - but you may be surprised what little difference it makes too. Not needing gas to drive to work every day, tending to eat out more and do more out of convenience, and the big ones - childcare and TAXES, etc.

    Good Luck!

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