Thinking about living on a single income might sound terrifying at first, but believe it or not, there are actually many families with two incomes who choose to live on half of what they earn. That way, they can use the remaining earnings to fund anything from paying down debt to buying a home to building up their savings account so they can retire early. Single individuals or families can accomplish anything they set their mind to on one salary, with a bit of time and a lot of self-discipline. That said, here are three milestones you can still accomplish with a sole income.
1. Buy a home
You might think that buying a home with only one stream of income is out of the cards, but that is fortunately untrue. You’ll be happy to know that 18% of homebuyers in 2019 were single females and 9% were single males, which proves that buying a home on your own is an attainable goal. However, nobody said it was easy. It takes years of building up credit, searching for homes, and accumulating your savings account to be financially prepared to take on an investment this large.
Depending on your specific financial situation, you can still get approved for a home loan by providing the appropriate credentials like your credit health, debt-to-income ratio, and the money you have available for a down payment. If your income is on the lower side, don’t fret. Certain mortgages like FHA loans call for only a 3.5% down payment compared to the widely recommended 20% and require a lower credit score than other conventional loans, making it a more practical option for single homebuyers.
It’s also helpful to know that there are special programs for single first-time homebuyers that you can look into. Check out this state-by-state guide to programs in your state that could help you with housing assistance or financial guidance.
2. Get a degree
Another milestone you can still reach independently is getting a degree. While student loan payments for the next ten to fifteen years might be a little overwhelming to think about, there are plenty of things you can do to both reduce the cost and manage the payments over the next set of years. Plus, many would agree that the benefits of getting your degree either outweigh or offset its financial burden.
Beforehand, you can apply to some of the many scholarships and grants that might apply to your situation in addition to federal financial aid (FAFSA) to make higher education more affordable. Visit this page to get started on finding which grants and scholarships apply to you. You should also consider taking online courses so that you can continue to earn money while working toward your degree.
While going to college or paying student loan payments, it’s critical to be conscious of your spending and minimize wherever possible. Remember, the faster you pay off loans, the better your credit and the better your financial health later on down the road.
3. Hit your savings goal
When you list out all the goals on your bucket list, how much money does it all cost? Chances are that there are vacations, cars, houses, and even starting a family on that list, which can add up to a whole lot of money. This makes it critical to start building up your savings account to support the life you want to live. But still, in a recent study, 44% of surveyed adults claimed they were unable to cover just a $400 dollar emergency expense.
You can save money regardless of your salary– it’s all about the way you choose to allocate your earnings. It’s widely recommended that you keep your monthly debts to around 50% of your total monthly income to allow for sufficient savings. Around 30% should be dedicated to your savings account, but you can allocate more or less to maintain a comfortable lifestyle.
Single income families have many options when it comes to managing their finances, and that can mean some major lifestyle changes in some cases. Downsizing your living situation, eliminating unnecessary expenditures, and unsubscribing from services like cable can slash hundreds of dollars off your monthly spending and allow your savings to grow larger by the day. With a few efforts, both small and large, you can reach any savings goal and check the boxes off your bucket list.
Need A Massage? Learn How To Give One To Yourself And Your Loved Ones
Receiving a massage, whether it’s given by someone else or self-administered, can help loosen your muscles and establish a better connection not only with your body but also with the people you love.
