Home | Finance | Personal Finance

Are Two Incomes Better Than One?

By: rateempire

Two incomes aren't always the obvious choice. Most households today consist of two incomes. Stay at home parents are less and less common. Part of this is due to the increase in housing costs in many areas. Houses are larger, fancier and more expensive than ever.

But have you thought of the costs associated with two incomes? When both parents work, there are more auto costs -- double the auto insurance, gas and maintenance. There is also day care, an increased level of taxes, more for clothing and even lunch.

You have to spend money to make money, after all.

Two income homes are often more risky than one income homes. When there are two incomes, a level of spending is reached that is comparable with the two incomes. If one wage earner is laid off or can no longer work, the family may find it is in financial trouble.

In a one-income family, if the wage earner is no longer working, the partner can go to work and provide approximately the same level of living for the family. Yes, there may be a gap in the incomes, but it usually isn't as severe as when a two-income family loses one income.

It's not that two income families aren't great. They are just as wonderful as one-income families. But you should consider all of the costs when looking at the extra income. It is often more sensible and increasingly frugal to consider becoming a one income family.

Even if you are a two-income family, you can reduce your risk by simply working your budget so that you are living off of only one income, not both. That way, you are able to cushion yourself against any unforeseen occurences. The income from the second income should go directly into savings each month. You will be amazed how quickly your savings will grow by doing this.

It can be difficult to go from two to one, but if you adjust yourself gradually, you should really notice the difference. The changes can start as simply as no longer eating out for lunch. For two people, that can save around $100 a week. That's $400 a month!

Then, consider carpooling. Lots of families arrange it so that one person goes on and off work fifteen minutes before and after the other person. That way, they can ride together. This can save a lot given today's rising gas expenses.

Find ways to cut your monthly expenses. Start paying off all of your credit card debt. If you have no credit card debt, start paying off your other debts. You should make sure that you have emergency savings that will cover up to three months of expenses. This will cushion your budget from unexpected emergencies.

Look to ways to cut your utilities, grocery spending and entertainment costs. You will be surprised what you will cut and never really miss.

One or two incomes, it is up to you. But make sure you base the decision partly on the math involved, not just what others are doing.

Article Source: Main Articles

#1 California Mortgage Loan provides mortgage rates and mortgage quotes. #1 California Mortgage Loan also operates #1 Home Improvement Services and Debt Consolidation portal.

This article may be reproduced wholly or in part without written permission provided the byline, resource area, and any hyperlinks remain in order to give proper credit to the author.

Internet search engines and directory listings are imperative to your sites existence and success. Submit Your Website to the Searchen Networks directory and search engine to achieve authoritive inbound links.

Please Rate this Article

Click the XML Icon Above to Receive Personal Finance Articles Via RSS!

Additional Articles From - Home | Finance | Personal Finance

Credit Card Consolidation for the College Student - By : Richard MacGrueber
The Importance of Teaching Your Children Money Management Skills - By : Richard MacGrueber
The Basics Of Personal Finance Investing - By : Richard MacGrueber
Money Management For The Single Parent - By : Richard MacGrueber
Easy Ways to Protect Your Personal Finances from Further Economic Contraction - By : Richard MacGrueber
The Importance of Learning about Personal Finance - By : Martha Vasquez
A sound financial planning can avert a catastrophe! - By : Kirthy
A Guide To Personal Finance - By : Joseph Then
Creating a Personal Budget - By : Fred Hopkins..
Selecting a Checking Account - By : Nicholas Hunt

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

	Submit Articles
	Member Login
	Top Authors
	Most Popular Articles
	Submission Guidelines
	Ezine Notifications
	Article RSS Feeds

	New Stuff
	About Us
	Link to Us
	Contact Us
	Privacy Policy
	Terms of Service

:: Top Author Businesses:

Try your luck, Play BlackJack

:: Our Supporters: