How to live on single income

gboyinwa ajomale

September 21, 2017 2:12 PM

Though it might look so difficult living only on one income but, with lots of determination and commitment, it is possible.

Not everybody can boast of more than one stream of income. Some people just have one source of income and they are doing just fine with it.

Though it might look so difficult living on only one income, with lots of determination and commitment, it is possible. It is said that a happy life is the one lived with contentment.

So, here are useful tips for you:

1. Set the right priorities

Living on one income will work if priorities are set right, understanding that luxuries and expensive lifestyles are less important.

Know what you really need to spend your income on.

2. Monthly budget

As a single income earner, having a monthly budget helps you get an idea on how to adjust and manage which helps you to control your expenses.

When creating a budget, it is important to factor how much of your income you want to keep for saving. This makes it easier to spend within the budget.

3. Downsize

You must learn how to make sacrifices and do a lot of downsizing where you can, deciding what your expenses should be and what is left of it.

Probably you have two cars and you only use one most of the time, why not sell it instead of accumulating unnecessary expense draining your income or a gym membership that is taking a chunk out of your income, you can quit the gym and start doing exercise routinely in your home.

4. Emergency fund

There is always this fear of uncertainty while living on a single income but having an emergency fund aids in the reduction of pressure, always coming to the rescue during unforeseen circumstances.

To start saving for an emergency fund, you need to take out at least 15 percent of your monthly income and also cutting down on spending.