Homeschooling on One Income

At some point, life happens – and for whatever reason, you decide to start the homeschool adventure. Although there are many good reasons for home schooling your children, there are some serious realities that will need to be addressed. Foremost is whether you're ready make the jump to one income.

It's not a surprise that more couples than ever are relying on two incomes to get by. But if your family is seriously considering home schooling for your children, then you are more than likely going to have to become a one-income family.

While there are many obstacles to overcome, living within a one income budget can be done with thorough planning and a willingness to make the hard choices.

Get on the Same Page
It is critical to be in complete agreement with your spouse about why you're making the choice to homeschool your children. We will not discuss all the great reasons here. Understand that it is important to agree and recognize the reality that your family will more than likely have to make due on one income.

Feelings of ownership over money can be a tough issue for one-income families, as the spouse earning the money may feel more entitled to spend it. Establishing a personal allowance for both partners may help to reduce those feelings.

Carefully Map Out Your Budget

Don't feel like you have to resign yourself to a ramen-noodle diet. If the children are old enough, sit down together as a family and decide on some things that you currently do that you realize are wasteful or that you can do without. You might cut back on some cable TV Premium Channels or maybe re-think the overseas vacation plans. By including the children in the process, they will have some ownership of the process, and will understand that there is a good reason for changes in lifestyle.

Then as a couple, you need to decide on the really serious ways to cut back. Put together a list or spreadsheet and see just how much money is currently coming in and how much is going out. Then remove the one income and look at your real and necessary expenses. Start with the mortgage, taxes and insurance for home and your cars. Keep in mind some of the things that seem obvious like groceries, life insurance, and medical and disability coverage.

Start out with the necessities and then set your spending priorities accordingly. Adjust your budget to reflect a comfortable lifestyle without being lavish. Should you give up dining out every week, or weekend movies, or both?. Re-evaluate fixed expenses such as cable, cell phone plans and monthly memberships and subscriptions.

Look First to Big-Ticket Items

Face the reality that skipping a few trips to the coffee shop will not make up for the loss of an entire paycheck.

Trimming costs on your home, cars and other major monthly expenses will free up the most room in your budget. This can be difficult, as the costs of necessities have risen dramatically in recent years.

But it's not impossible. There are lots of creative ways to lower housing expenses. You might actually have to spend a little extra now while you still have two incomes to save a lot later. If your A/C or other major appliances are very old, consider the possibility of replacing them now. You may receive a tax break as well as reduce your power consumption, resulting in significant savings over time.

Cars are another major expense, and it might be worth selling a vehicle if one person won't be commuting. Or consider replacing one with something used but completely paid for. Removing a car payment from your expenses can be a real benefit. Also pay down any credit cards or other monthly bills that might prove cumbersome later on.

Once your family can see what the monthly obligations are, you can look at that list with a critical eye and determine what is important and what can be eliminated.

Keeping Up with the Joneses - NOT!!

Many of the luxuries of today's modern family -- the bigger house, new cars, the bigger boat -- are the result of a two-income lifestyle. Don't expect to maintain all these things if homeschooling is your priority. You may need to have an open discussion with your friends and let them know that you are changing your lifestyle. Often you will find that there is a sense of relief that less expensive restaurants are acceptable. Sometimes “The Joneses” are living right at the edge, thinking that they have to keep up with you.

Don't Cut Back Too Much

Don't eliminate long-term savings or retirement planning. Because these things aren’t tangible, it's very easy to think this a a good place to cut back. The same goes for discretionary spending. Don’t eliminate the things that make you a family. You can still find ways to vacation, travel and enjoy life. Don’t make the mistake of giving up living to provide your children with a quality education.

It may be that occasional dining out or coffee is a business priority or a networking tool for the working spouse, so don’t go overboard just to make it look like everyone is taking a hit.

Look At Alternative Income Sources

Just because only one spouse is going to work outside the home doesn’t mean you have to give up all other sources of income. Consider some part-time work, or look seriously at alternative revenue streams. Many home educators find that they have plenty of time to make a very decent income on eBay or by marketing something that they create themselves. Anything from crochet to Mary Kay can also provide a supplemental revenue source without taking more than a few hours per week.