Money is the hardest thing that is difficult to handle by many families all over the world. So many families are experiencing financial crisis day in day out due to many reasons.
A financial survey by experts in Singapore showed that almost 50 % of the families are dual income earners. So many couples do believe that being a dual income family is the best thing because of the higher cost of living, uncertain stock market, and unquestionable economy. If you study carefully, you find that many families’ income, the way they spend their money is in many cases not financially advantageous. An increase of the high income enhancing the security of our finance, it becomes an excuse for us to increase our standards of living. Many Singaporean families do not save any money at all; some even work until they retire without any savings. As such, many would turn to Credit Hub Singapore in hoping to get some short term loan as temporary measure.
So many families are trying a new strategy of limiting their budget with one of the income from one of the partners. This step can be difficult, but the financial advantages are very high. For instance, if you and your partner are working and one of you earns like $70,000, and the other earns $100,000 in a year you should not use all the $170,000.
Take the first step
The first step that you should take if to try to live with let’s say $70,000 and save the rest. All you have do is to sit down with your partner , talk in a polite manner on how to survive on the one income. Some of the ways you can adopt so that you can increase your saving are:
How to Maximize Your Savings
To be able to monitor your expenses you have to calculate the total of your income and draw a budget. As a couple you should learn how you can prioritise and sacrifice. One thing that consumes a lot money to many families is when it comes to buying food. There are some things that you can do so that you can cut the cost. First if you like eating outside in hotels you have to limit and start cooking your own food at home. Avoiding buying any starchy foods that do not add any value to your body. Just concentrate in buying that is simple and cheap but has all the required minerals and vitamins.
So many people do waste a lot money they earn in paying for their transport while going to work. If you have two cars that everyone uses his/her car while going to work you can limit the usage. You can sell one car and use one for both of while going to work. If both of the cars consume a lot of fuel you can sell all of them and buy that does not consume a lot of fuel. Another can be by buying or renting a house near your work places so that you do not use a lot of money when it comes to transportation. Once you do that you will be able to set a budget in that it suits the income of one partner allowing you to save a lot of money.
Set a budget limit
So many families that depend on using credit cards are attempted to overspend while they are shopping. If you wish to avoid this using the credit cards you can hide them in a place where you cannot trace them easily while shopping. This is because so many people do buy goods without considering the price and then swipe their cards. You have to carry cash when shopping, stick to the family limit that you have set.
Quality vs. quantity
Many families do have issues when it comes to quality and quantity. Some say that it’s better to buy something that’s expensive that does not break down easily, others would rather stick to buying a lot of cheap items since wholesale prices such as Ezbuy, can lead to substantial savings. A good way to save when it comes to quality and quantity is to look at quality as an investment. Anything that requires a large investment like a car, a house, a new TV, needs to have good quality. You’ll spend a lot on the initial cost, but you’ll save yourself the grief from maintenance costs and repairs. By using one partner’s income and saving the remaining is one of the best ways of increasing your savings so that you can live a more financially stable life.
Paying your mortgage
As a couple, you can pay off your entire mortgage using part of the income and use the rest for your family expenses. Do not forget to set up an emergency fund. This can assist you in overcoming any unexpected calamities that may befall you. Why a couple that is employed should use one income?
Enhances greater security
Even when both of you are earning income you can experience an instant financial problem if one of you is raid off. If this happens to your family you will be able to manage in paying your bills as you will need some adjustments. In addition if one parent decides to stay at home because she has given birth or he/she dies the loss of income will be easier to accommodate. Living as if you only receive one income at the end of the month will enhance greater financial security and smooth lifestyle transitions.
Enhances faster debt payment
There are so many families in Singapore who are highly overwhelmed by debts yet both of them do receive income at the end of the month. They do not know that the second income can be used in paying the debts slowing until they are resolved.
With only one income for paying your household expenses, you will have fewer budget categories making budgeting easier. A simple budget means that as a couple you can track and refine your expenditures and income resulting in good financial health. There are so many reasons why you should live with income of one partner, do not continue to suffer while both of you are working.