Budgeting Tips for Single-Income Households

Operating on a single income can make budgeting trickier for any household. Whether you live alone, you're a single parent, or you and your partner have decided to live off of just one income, single-income household finances can be a little tighter and may require extra planning. However, with enough care and forethought, it’s possible to make ends meet and live comfortably off a single income. If you’re in this situation, here are the budgeting tips you need to take note of right away. 

Cut Down Your Grocery Bill 

Food and other groceries tend to be one of the biggest expenses for any household, so cutting down on your grocery bill may help make your finances more comfortable. You can save some cash if you: 

• Plan your meals for the week and only buy the necessary ingredients 

• Purchase items on sale at the store and shop from the bulk bins to get additional discounts 

• Look for coupon offers or two-for-one deals 

• Sign up for store rewards cards that you could redeem on future groceries 

Avoid Credit Card Overspending 

One of the biggest potential money pits for any household is credit card overspending, so it’s important to design your household budget carefully and to avoid relying too much on your cards. If it helps to avoid temptation, you may want to automate monthly bills that you know are recurring expenses. If you plan to use your credit card to cover non-essential expenses, make sure to set a maximum amount that you allow yourself to charge every month and pay off your monthly bill in full if possible. 

Save Every Week and Diversify Your Accounts 

Working savings into your budget is critical to ensure the future financial health of your household. Even if money is tight on a single income, try to save weekly and make passive income off those savings. You can start building yourself or your family a cash cushion by: 

• Making sure you have an emergency fund that can adequately cover up to six months’ worth of your expenses in case you lose your job 

• Diversifying your savings accounts and asking a financial professional about making smart investments for the future 

• Putting away whatever money you can each week, even if it’s only a few dollars at a time 

Whether by necessity or by choice, living off a single income can present unique challenges. However, with careful planning and budgeting, you can make your income work for you and meet your financial needs. Try these tips and save up cash for your household’s future.