At the beginning of a marriage, if the husband or wife plans to be a stay-at-home parent, save 100% of the income that could be left behind. Even if he is married for several years and one spouse is not staying home, as the Lord directs, set a goal and develop a plan to live on one income.
Unless God tells you otherwise, put unspent income away in a Equity Fund or other account you establish specifically to purchase important items (“Fund”). Use these funds to pay for expensive items that don’t fit into your operating expense plan. In addition, future homeschoolers must use this Fund for additional costs that may result from switching to single income, such as books, tables, chairs. If you have debt other than a mortgage, before you save in the Fund, prepare a debt payment schedule and pay non-mortgage debt.
Trip to One Income Living
If God leads you and your family to live on one income, do it. You’ll need your Ph.D. to get started and stay engaged:
- Patience (Isaiah 30:18)
- Humility (1 Peter 5:6)
- Dependence (Isaiah 26:4)
You may find these tips helpful:
- Surrender every area of your life to Christ, let Him be Lord and Savior. Ask Him to examine you and show you the obstacles (Psalm 139:23-24). Too often we forget that when we surrender to Jesus, He will allow us to live on our income. Remember his promise to give life, food and clothing…when we seek first his kingdom and his righteousness (Matthew 6:24-34).
- Pray (as fast as you feel led) individually and as a family. This should be the will of God. Without reservation, the husband and wife must agree to live on one income. When you are tempted to think you can’t do it, rest assured that if it is his will, you will do it in his time (2 Peter 1:3). You can’t do it alone, that’s why Christ’s followers have the Holy Spirit living in us (Galatians 3:3).
- Once God leads you to set a goal of living on income by a specific date, accept that you will not borrow or use credit cards to increase income. He understands that money is not the problem, but lifestyle choices. And so, you can’t expect a two-income, one-income lifestyle. You must give up some wishes.
- Don’t go for the home run! Do not stop the second income abruptly. Move gradually; start living on one more income, say, 80% of the income that will stop. During an agreed period, drop 80% to zero. If you try to go there in one go, you might think it’s impossible. As noted above, keep any unused income in the Equity Fund.
The husband and wife should make a financial plan of the home, including the spending plan, the capital fund and the declaration of material value (list of things owned at market value, less debts). To reduce debt or increase cash, ask God if you should sell “valuables.”
At first, don’t be surprised when expenses exceed income alone. That’s normal, even on the third try! Go back, check assumptions, remove more desires, ask God for knowledge of him.
- To keep track of the future activities and finances of the household, decide to start a Family Council (household board of directors) or equivalent. One person should write the books, but the family should be involved in household decisions.
- Get tax advice on the projected single income home. You may be pleasantly surprised.
- Reduce the size; Simplify, consider the following: rent a house instead of buying it, start a vegetable garden, buy a freezer to store vegetables out of season.
- When God shows you to start; pray, go, keep praying!
- As you go, monthly in the Family Council, review the progress. Don’t revise the goal unless God directs you.
Summary
Giving up an income to be home with the kids is not a financial decision, but a lifestyle decision, which the loss of your job could force on you. It is hard work.
Although Doreen and I were not followers of Christ when we decided to live on one income, in hindsight we know it was the right thing to do. We sacrificed, especially the first five years when Doreen and our two young children did not have access to convenient and reliable transportation. As a grandfather, I assure you that today’s sacrifices to raise children “on the path they should follow” are small in the big picture: they are temporary, with permanent rewards.
Copyright (C) 2009, 2012, Michel A. Bell