Sunday, December 5, 2010

Switching from Double Income to Single Income

My wife and I have been discussing whether to switch from the current double income to single income. And we have decided to switch starting from beginning of next year. After the switch, I will continue working whereas my wife will quit her current job to become a stay-at-home mum.

What is the motivation behind for switching to single income?
Double income family is seen as a norm in today modern society as it can greatly lower down the family financial burden. In spite of that, why are we deciding to switch to single income?

As parents, we foresee the need for an adult to be around with our toddler so as to teach and discipline her directly. It is no rocket science to know that our education is getting tougher. Sending her to playgroup or child care might not be a good idea in our opinion as teacher attention level will be split among many students. It will definitely affect her study if she is not focusing well enough. We also find it very tiring to teach my daughter after coming back from work.

We would also like to send our daughter to a better primary school. In order to stand a better chance for our daughter to go to a good school, we will have to become parent volunteers for the school of our choice. So with my wife as a stay-at-home mum, she is able to commit her time as a parent volunteers so that I would not need to take leave from my work.

Are we able to live comfortably in today’s society on a single income?
I have been keeping track of our expenses and have a good understanding of our current financial situation. After deducting our expenses from my active income and my passive incomes, we are able to save a decent amount of money each month. So we will still be able to live comfortably on a single income.


Createwealth8888 said...

I have survived on single income to feed three hungry mouths and two not-so-hungry mouth since 1995.

At that time, I also think like that: "Are we able to live comfortably in today’s society on a single income?" and "What if I got retrenched?" Many worries lor.

Freedom Achiever said...

Hi Createwealth8888,

Ya, I believe with proper financial planning, there should be less worries.

Freedom Achiever

Have you started your journey towards financial freedom?