How to live with less

Having a reduced income doesn’t have to call for panic, says financial adviser and author HELEN BAKER

- HELEN BAKER, Amy Hadley

Sometimes living with less income is a choice, such as when a baby arrives. Other times it’s by default, such as redundancy, separation or a partner passing away. Whatever the reason, life on one income is a big adjustment, but this checklist will go a long way in simplifying that transition.

BEFRIEND YOUR BUDGET

Relying on one income when you’ve been accustomed to two requires some cutbacks. If you have a household budget, revisit it and adapt it to your changed circumstances. If you haven’t got one, now is the time to start. Be diligent in separating your needs from your wants. Cut things you no longer need – unused subscriptions are a great start. Set some money aside in an emergency fund for a rainy day.

SAY NO

Many parents try to maintain the standard of living their kids previously enjoyed, but doing so on one income is impossible. It means being brave and saying no sometimes. Compromise on where your cash goes. Swap nights out at a restaurant for a nice meal at home. Trade beachside holidays for days out at a local beach. Buy brand names your kids love secondhand or from outlets.

DELEGATE CHORES