David Fisher, founder and CEO of Summit Income Planning Group, was recently featured in a Kiplinger article titled “Can Your Family Afford to Live on One Income? 7 Money Moves to Make First,” which explores a common financial question among new parents.
According to David, the decision involves more than simply comparing a paycheck with childcare costs. He emphasizes the importance of looking at the big picture: your full financial picture, preparing for potential setback and recognizing the tradeoffs involved in becoming a single-income household.
“People run the numbers, get an answer they could genuinely live with and still can’t decide because they are waiting for a version of the choice with no downside. That version doesn’t exist. Every real option carries a cost.”
-David Fisher
David goes on to discuss the seven financial moves to make that can help you make the best decision for your family:
- Figure out the real change in income and spending
- Review life insurance coverage
- Plan major credit applications ahead of time
- Test the budget first
- Double your emergency fund
- Make a “return to work” plan if you want that option
- Talk frankly about the shift in power dynamics that will happen
“For a few months before anyone resigns, operate the household on the single income and save 100% of the other.”
-David Fisher on testing a budget before making a change
At the end of the day, a successful transition to one income requires realistic budgeting, adequate savings, long-term planning, and open communication between parters, all while keeping the bigger financial picture in mind.
For practical insights on preparing your finances for a single-income household, read the full article here: https://www.kiplinger.com/personal-finance/family-savings/can-your-family-afford-to-live-on-one-income
Read more about David here: https://summitincomeplanning.com/about-david-fisher-summit-income-planning-group/
Have questions about your family’s financial future? Contact David Fisher with Summit Income Planning today to get started or if you have any questions.
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Educational only — not investment, tax, or legal advice, and not a recommendation of any specific product or strategy. All figures are illustrative examples, not projections or a promise of results. Securities offered through The Quantum Group, member FINRA/SIPC. Investment advisory services offered through Summit Global Investments, a Registered Investment Adviser. Insurance products offered through Summit Income Planning Group. Separate and unaffiliated entities.
