When two incomes become one

couple finances

Change is never easy, least of all it when it comes to your finances. If you've been with your partner for some time, you've probably gotten used to life on a dual income. But suddenly, for a variety of reasons one of you has decided to quit his or her job, and you find you've got to start getting used to living on a single income again - except now you've got to cover expenses for two.

The transition can be tough. You'll need all the tips you can get to maintain a budget on a single income.

Plan ahead

You're probably not making this decision lightly. If you're staying at home to raise a child or quitting your job to study, you didn't choose to do so on a whim - you carefully considered your options for a while.

Incorporate a little bit of financial planning into this long-term consideration. Put away a significant amount in savings and pay down (or, ideally, off) your debt before you stop getting a steady pay cheque. You could even make use of MOVO's Lifestyle Budgeting tool to figure out how much money you might need.

Find other income streams

Just because you took time off your main career doesn't mean you have to entirely forego a second income. Instead, you could look for something to supplement your household's reduced, single income, by getting a part-time job, for example.

You could also think about investing your money into some reliable assets - though which you end up choosing depends on the kind of returns you're aiming to get.

Downsize

This isn't simply in the sense of cutting your spending, though obviously that's a must. You can also make significant savings by selling your current home and moving into a smaller or less conveniently placed property.

As a result, you're likely to save money through smaller monthly repayments. You may also get a significant boost to your funds from any potential capital gains.