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 .
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 .) 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.
I just have to say...
November 13th, 2008 at 08:51 pm
November 13th, 2008 at 08:57 pm 1226609828
November 13th, 2008 at 09:01 pm 1226610083
November 13th, 2008 at 10:53 pm 1226616827
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.
November 13th, 2008 at 10:54 pm 1226616861
November 14th, 2008 at 05:12 am 1226639544
November 14th, 2008 at 06:28 pm 1226687336
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)