by Raven Lebeau

Created on: May 18, 2009

Living on one income is not as tricky as it may seem. For many households, the decision to have only one family member employed full time may be the best choice, both from a lifestyle and from a financial standpoint. If you are struggling to make ends meet on one income or considering making the change to a one-income household, here are a few tips for financial success:

1. Making saving a full time job.

For non-working adults, money may be hard to come by, but time is usually a less scarce resource. Homemakers can make a meaningful financial contribution to the household by comparison shopping, planning and preparing inexpensive meals, and even performing simple home repairs. These are things that working people often do not have time to do, so they are a true financial benefit of having a non-working family member.

2. Save and invest wisely.

Relying on one income means that a job loss could be devastating to the household. Be sure to have a large emergency fund that could pay the household expenses until the breadwinner finds new employment. Also, because there is less excess income to invest, choosing investments carefully becomes key. Avoid high-risk investments and allocate most of your savings to conservative investment strategies such as covered call writing or holding high-dividend stocks.

3. Forget the Joneses.

Many people feel compelled to follow suit when the see a neighbor put in some expensive new landscaping or hear about a co-worker's new car. However, when living on one income, it is not realistic to compare your lifestyle to that of a two-income family. Having less income means that you simply must spend less, but it also means having time to enjoy life (for the homemaker) and having fewer responsibilities at home (for the working partner). Count your blessings instead of feeling bad about the things you can't buy.

4. Consider part time work.

The choice to work or stay home is not an all-or-nothing situation. If the household needs a little extra income, a homemaker can take up a part time job during hours when childcare is not necessary, such as while children are at school or on weekends when the other partner is home. Even temporary or seasonal work can provide a good financial boost.

5. Look for creative ways to make money.

Consider having a garage sale, selling unneeded items on eBay, or finding ways to make money online using websites such as Helium.com or Mechanical Turk. Babysitting, petsitting, dog walking, and helping neighbors with odd jobs are other ways for a homemaker to earn some extra cash without the commitment of a formal job. The extra income can help make up for an unexpected expense or pad an investment portfolio.

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