Living on Single Income: Strategies for financial stability in one-earner households

financialexpress.com:

In India (and world over), single-income households are becoming increasingly common. This can take different forms from a single parent household to supporting elderly parents, many families find themselves relying on one earner.

With this increasing shift in family structure, financial stability is crucial. With meticulous planning and disciplined budgeting, one can achieve this.

Below is a guide to consider for a single income family:

* Budgeting and Tracking Expenses: Start by creating a detailed budget to understand your spending patterns. This may take some getting used to. Track expenses over a few months and categorize them into “needs” (rent, groceries, utilities) and “wants” (dining out, entertainment). There are plenty of budgeting apps available on the app store. (However, be wary of providing unnecessary access such as photo albums, contact list etc. Have a read through of the reviews to confirm their authenticity.)

Also Read: Dividend Yielding Mutual Funds: Get regular income with potential capital gains

* Prioritization: Prioritize your spending by focusing on needs and essential debt repayments, like education loans or mortgages. In case of multiple debt repayments, It may also be a good idea to meet a financial planner who can help prioritize your repayments better. Additionally, consider cutting discretionary spending and finding cost-saving alternatives. For example, use public transportation instead of cabs, or cut out those multiple OTT subscriptions.

* Building a Savings Plan: With the right kind of planning, a single income shouldn’t prevent you from saving. Look into investment options like the Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (for families with daughters), which offer tax