Top 5 Ways for One Income Families to Build Financial Security
1~ Take out a term life insurance policy on both you and your husband. Your policy should be enough to cover all of your debts in in the event of your husbands death plus six times his current income.
2~ Have a written plan of action executable upon your husbands death. This is not a will. This plan is more of a plan B road map. It is the backup plan to our current plan. We have a life together financial plan and a life in the event of death financial plan. This is something my husband and I talk about often but I often fear that I may forget it all in the event that he dies before me. They are simple things but we write them down just in case my emotional state were to prevent me from keeping everything together.
3~ Start a home business or find a way to earn money using your hobbies or talents. An extra stream of income will allow you to pay off debt faster and accumulate wealth. If you have any question as to whether you could earn and income if need be, this will help reassure you that you would be capable of earning money. The amount of money at this point is not important. If you make just an extra $100-$200 a month taking surveys that will be extra money added to your household to help build security.
4~ Use the extra money you earn to begin an Emergency Fund. A typical emergency fund should have at least three times the amount of your total monthly expenses. Monthly expenses is not the same amount of your husbands income. Monthly expense is the total dollar amount of all monthly basic necessities such as the cost of housing, food, heating, electric, water, telephone, gas, groceries and tithes. Having an emergency fund will help you to feel more secure and less stressed in the event that your husband were to lose his income.
5~ Build a three month or more grocery and household item stockpile. Having a stockpile in the event of job loss can help you to feel more secure. Not having to worry about the added expense of grocery, household and hygiene items will be a huge relief if faced with living on a limited income. Building a stockpile is something that can be done immediately with just a budget of $12 a week. That’s all it takes to begin building a basic stockpile.
Okay…. A Proverbs Wife Community, it’s your turn. Are any of you one income families? If so, what is one thing you do to be good financial stewards over your families finances.
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