You decide to stop working because they want to concentrate on caring for children. You do not want to lose the moment when the child is doing its achievements, from one step to another. A noble decision that not all women dare to do it.
The problem now, stopped working means your little family now rely on one income alone, the husband’s income. This fact and the husband forces you to ask yourself honestly: Can you reduce spending and bring down your lifestyle for this?
For those of you who already have a side business, or a husband whose income is more than enough, would not be a problem. What about the families who still rely on employees’ salaries?
Sure you can live a new life is as long as you do the planning and the willingness to make choices.
1. Talk to your husband
Before you decide to stop working, of course you should discuss it with her husband. A sense of belonging can be a conflict specific income families who rely on one source of income. Husband or wife who has the money to spend it would feel more entitled.
“Be sure to convey all aspects of this decision that an agreement is comfortable and beneficial to all parties,” said Judy Lawrence, a financial consultant in Albuquerque, NM, who is also the author of The Budget Kit: The Common Cents Money Management Workbook.
2. Map your requirements carefully
Do not make any decisions before making a detailed budget to meet the needs of the family. According to Lawrence, soon after realizing his duty, spouses can see a list of current needs and determine what should be reduced. Eg, subscribe to two magazines a month or cutting all your credit cards to avoid the desire to shop.
“When developing a budget for day-to-day life, you also need to include the extra expense for insurance or sudden expenses,” suggests Ben Gilbert, a financial planner for Silver Oak Advisory Group in Portland, Oregon. Prioritize the needs which should come first, then re-evaluate spending still like telephone bill, internet bill, or pay-TV.
3. Reduce spending a great routine
Only reduce your buying habits premium coffee at the coffee shop will not be able to make up for the loss of one income. Cut your expenses for the care home, car, or other monthly needs will be leaving room in your budget. It is not easy indeed. Therefore, you should carefully look at what expenses can be reduced.
Car wash, for example, no need to bring it to the snow wash. Husband can wash it yourself at home. To reduce the cost of gasoline, you can use a more efficient means of transportation, such as trains or TransJakarta. You can also take advantage of what is there to supplement their income. When there are empty rooms in the house, for example, you can rent it for boarding.
4. Goodbye lifestyle
When you and your husband both work, would not you run a lifestyle based on two incomes? That felt better if each of you have friends, and each one has a need to socialize. Of course, there is an extra expense for that. “When you resign from the company, do not expect to have all these luxuries,” suggested Gilbert. Unless, of course, husband’s salary is able to accommodate all of these requirements.
“You can discuss it with your friends and say that now you can not often eat at a restaurant or doing activities together because choosing to live more economically,” he said.
5. Do not reduce too much
You do have to downsize, but do not get caught eliminate long-term savings. According to Gilbert, retirement savings was not directly seen so many couples are compelled to cut it.
The same goes for other needs. You may be determined to cook yourself with a main dish of vegetables. If this is not something you like, you will eventually get bored and decide to snack outside again. Fulfill your needs sufficiently. Conversely, when eating out was a way to expand the network, it could not hurt you cut other spending first.
6. Improve ways to save
Even though you’ve decided to stop working, does not mean you can not earn money in other ways. In fact, if you could open a small business, then you can use the income from the business for savings, investment, venture capital used, and so forth.
“Many people who use the income to various obligations, such as mortgage, transportation, or meals everyday,” said Lois backon, Senior Vice President of Families and Work Institute. Then, they use the other income for other things.
7. Perform trial
You can do exercises to manage the day-to-day needs of only one income. Do this before you decide resign to see how you and your husband were able to save.
Gilbert suggested to set the automatic transfer of funds in the bank to withdraw a certain amount so that part of your income will be reduced for a few months. Then, also set aside some of the money for other purposes, such as saving or on vacation.
“Now this, to indulge in an instant, plus there is a push from the media for consumptive life, the ability to save and adjust lifestyle (simpler) is especially significant than you realize,” said Lawrence.