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Instead of working, it may actually save your household budget money to have one partner stay at home. Keep these things in mind when you’re figuring out if you can be a one-income household.

If you are like most Americans in a long-term relationship, you and your significant other rely on both partner’s incomes to make ends meet. Having two incomes does not always make a household more financially secure. Making the switch over to being a one-income household can be initially tough, but the benefits of it can be worth it.

What are the benefits?

When you have two incomes, it is too easy to create a lifestyle that creates it. Credit card debt, mortgages, car loans, and more can add up quickly. A family can quickly be plunged into financial ruin if one or both partners lose their job. If the working partner loses their job, then both can look, which doubles the chances of finding work. In addition, with one partner at home, it’s much easier to cut significant expenses.

Where can we save additional money?

Cutting costs is much easier to do with one partner at home. The loss in income can very easily be made up for with the use of extra free time. The partner that is home can cook from scratch, cut coupons, and shop sales. That partner can also take on at least part-time childcare, cutting a huge cost out of the household budget. “Hidden savings” of staying at home can also add up quickly - things like lower commuting costs and the ability to brown-bag lunches. The stay-at-home partner can also do some of the tasks that had previously been hired out - such as laundry and dishes.

How can we decide?

Going from two incomes to one is not a decision to be made lightly. Sit down first and write two budgets - a one-income and a two-income. Decide if a single-income budget is realistic for your family. Be sure that you have an emergency savings fund - if you don’t, build one before you move to one income. Paying off debt is also important, so there are as few payments as possible. Employable skills should also be maintained by the stay-at-home partner.

What about benefits?

Consider seriously the benefits that you may lose by quitting a job. You may lose 401K, health insurance, or disability when you leave the job. Harvard University did a study that found over half of the bankruptcies filed in the U.S. are due to medical expenses. Keeping health insurance is very important.

What about part-time?

Consider having one partner work part-time if living on one income seems impossible. By reducing hours, working from home, or participating in work-share programs, the stay-at-home partner can still use free time while still bringing in income. This is a very good option if you have school-aged children - one partner can work while the kids are in school.

How do we make the transition?

If you and your partner have decided to live on one income, plan the transition carefully. When you’re transitioning, pay off any debt and build up savings. Discuss the transition with your employer as well. Once a schedule is set, stick to it.

You can build financial stability while living on one income. While it takes extra work, it can be worth it to you and your partner.

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