Our 2007 Finances Ã¢â‚¬â€œ Moving to a Single Income Family
December 31, 2006
The year 2007 may be a financially challenging one for our family. After much thought and discussion we decided to put family before money and have my wife stay at home with our new son. We’ll drop to a one income family halfway through the year which will end our 7 Â½ year run of saving around 30% of our annual income.
We’ve crunched the numbers and determined that we can get by financially on one paycheck, luckily mine is bigger, but we’ll definitely have to make some adjustments. Unfortunately we’ll have to reduce our savings rate quite a bit but there are three things that will help us keep saving as much as possible:
1) Be More Frugal
Our largest expense is our mortgage payment and short of moving this won’t change. We have no debt other than our house payment so there is a lot of wiggle room in most of our other expenses. Since there are a million ways to save money, being more frugal will be a dominant theme this year. The less we spend, the more we can save.
2) Increase Alternative Income
Ah, the elusive search for other streams of income. Currently eBay sales are the main source of our alternative income. My wife is going to jump into the eBay game as well, I’ll pass on everything I’ve learned to her. In addition, I have several other plans in the works. Not sure if they’ll all pan out but as I’ve learned from Seth Godin, you’ll never know if you don’t try!
3) Increase Salary
A successful year at work led to a terrific performance review, which sets me up for a promotion next year. This isn’t really a pure personal finance strategy but more of a matter of good timing. Luckily my hard work looks like it will pay off. The more I can earn, the more we can save.
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