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I just have to say...

November 13th, 2008 at 08:51 pm

I have heard folk think it is safer to have two incomes, but financially I feel better with one.

We have friends with two incomes, both are having their hours cut, rather stressful. Having one income be reduced is stressful enough but two at once?

My one income household can't have that problem, cutting my zero income is impossible Smile.

But if my husband were to lose hours I can go get a job..no not a great job, but I am certain I could get 'grunt' work. Child care and fast food both have high turnover, and are always looking for folk to work.

Aside from the fact that we don't use all of our income for living, we don't even use all of our earning power. Which is why this economy doesn't really bother us much.

Some might argue that earning power could have been making money all this time to store away in case of his job loss. (in the mattress I guess since stocks are so terrible Smile.) But remember what I do with my skills all day is 80% for the kids (and 20% wasted here online!) Not all decisions are purely financial.

This does not mean folk who like to work should quit, Whatever floats your boat folks.

6 Responses to “I just have to say...”

  1. gamecock43 Says:
    1226609828

    I never thought about it that way!! If you are living off 2 incomes then that leaves nothing but a decline in lifestyle if the economy changes downward...but if you have a spare person unemployed- then you have the potential for maintaining your lifestyle in a downward economy.

  2. Koppur Says:
    1226610083

    I like reading your thoughts on earning power. I used to feel like since I had 2 degrees, I needed to be in a good job that reflected that. A few months ago I realized that I don't need to do the earning power as long as I am working and we are doing good.

  3. gruntina Says:
    1226616827

    I would think it would be irrevelant as if you treated 2 incomes the same way with one income. Both be in a pickle if job cut losses. if one lose wage their job, they can look for a different job.

    But there are two incomes earners were the second incomes went to savings or either they do not owe as much on their home because they sped up the payment plan on the mortgage which is a better position to be in if there was a job wage cut.

  4. zetta Says:
    1226616861

    There's a book called The Two Income Trap that makes precisely the same observations that you have here.

  5. whitestripe Says:
    1226639544

    i think it would only be bad if you were SPENDING all of the two incomes. if you had two incomes, but were only spending less than one income, then it would not be so bad if they got cut, but if you only had one income and that got cut, wouldnt that be worse?

  6. princessperky Says:
    1226687336

    How many folk IRL do you know with two incomes who spend less than one?

    Folk tend to spend based on what they make (self included) Average American spends a bit more than they make, small percentage spend the same or a bit less, and it is a very rare soul that spends only half.

    Besides, while folk with the two incomes both must work very hard to be sure they are not sacked, no one is free to get another job, nor time consuming new frugal habits. (while I am)

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