We have now finished our third month of trying to live on a single income. We were able to do a much better job of staying within our budget than last month. In May, we spent about $380 less than we made for the month. As we have talked about in the past, you have to continue to look at the big picture, which can help you stay on track for your overall goals. We could have easily given up on our goals after last month after spending $490 more than we made last month. Instead we tried to buckle down and get back on track. Looking at the past three months we are now just about back to even, spending about $60 dollars more than we have earned.
Looking forward to summer break, we will have much more budget room with our childcare responsibilities dropping down to part-time. Keeping our monthly spending to one income will allow us to continue to use our second income to save for investing, housing improvements, vacations, and a new vehicle. After just three months we definitely realize how difficult it would be for a single income family. We are short of breaking even after three months and that is without having to pay a mortgage or auto loan. If we were solely living on a single income we would definitely have to cut more our of our expenses, which could be done if needed. This first cuts on the list would probably be satellite television and our dining out budget. We could easily free up an additional $200-$300 a month if needed.
Dealing with money can be difficult because we have to make decisions today that will affect our financial well being in the future. Everyone is in their very own unique situation. We all have to make choices on what is best for our current situations. We all have to work to figure out the right balance of spending and saving so that we can not only enjoy today, but to be prepared for the future. Although some decisions may be tough to make, we all face the same circumstance that if we spend more than we make we will never be financially free!
