As a family do you need two incomes?

Question

Or can why cover it?

Answer 1

While not every family needs two incomes (inherited money (or better, inherited or gifted house) or a high income of the working spouse, or a professional or writer, etc., who works from home in a place of cheap housing) may make it unnecessary), it is difficult to get by in most places.

The economic reasons are somewhat curious: In the 1960s women entered the workforce in great numbers. In the 1980s computerization took force and eliminated many jobs, especially those of scriveners, typists, telephone operators, etc. (it was said in 1990 that if electronic switching hadn't been invented, there would be a need for every woman in the world to be a telephone operator). In the 1990s globalization moved many low-end jobs to China and a few other countries, including especially manufacturing jobs.

Given that high-earning people tend to marry each other, the result was -- in general -- a concentration of earnings at the higher end of the middle classes and a reinforcement of poverty (the latter just as welfare was being time-limited by the Clinton administration).

The higher earnings made it felt in a huge escalation in the price of land in places where there are jobs and where people want to live. And with the concentration of wealth among professionals, in vacation homes.

Under the Bush Administration the concentration of wealth has intensified, with taxes on capital gains and other "unearned" income lowered, and estate taxes reduced with a view to eliminating them. The result has been the rise of a New Aristocracy of super-wealthy McMansion owners.

The super-wealthy represent only the top 1%. Your question concerns the top 50%: for them, to pay for housing in a good place with good schools that doesn't involve excessive (expensive) commuting means two incomes. And even then, the family is likely to be house-poor, as Elizabeth Warren (Harvard law professor who studies bankruptcy) "one paycheck away from bankruptcy").

The same phenomenon exists in England where health care and education are cheap or free. But there public housing ("council housing") is available to homeless families with children. Still, housing in London and other major cities where there are jobs is so expensive as to consume two incomes.

We are (collectively) buying houses from our grandparents and making their estates (and thus our parents through inheritance) rich. It is the greatest transfer of wealth ever known. And perhaps for the first time parents are having to subsidize their children's purchase of a first home.

There are other factors at work, including new "needs" for expensive designer stuff and electric and elecontronic gadgetry and a rising price for cars. But housing is the main culprit, and an unavoidable expense.

Answer 2

At least... the cost of living rises much faster than the pay scale, what could be afforded on one salary brought in by the bread winner, now is barely affordable on both heads of household working - sometimes 2 jobs each. It all depends on what you buy, your home loan or rent, if you want a newer car, if you think you must eat out often, etc etc. We have a low home payment (since 1986), we don't own fancy cars or high dollar brand name items, and we do just fine on one job each for now. When the kids were here however we had to be more creative and figure out ways of working more without compromising quality of family time. One would have not covered it. I took in children to babysit, sold needlecraft kits at home parties (when that was in style to do), cleaned offices at night after the kids and hubby went to sleep - while hubby worked at the local hardware store on weekends - these were besides our main jobs. I found working at a preschool was a great thing when the kids were small as they could go for 1/2 price while I got paid well, and I was there with them in the same building. I suppose one income could do it, but you would need to watch your money very carefully.

Answer 3

Yes it can be done, but its not uncommon for the wife to work now days either. I think it would just depend on the income that the one person is bringing home. It's acually beneficial for the wife to work at least pt part of each year for a number of reasons. One being,you can never be to sure how things will end 5,10, even 15 years from now, and having the skills needed in this job market is essencial to supporting yourself in the event that something was to go wrong.
On another note, I do not work, and my husband and I are doing just fine. We make just under $30,000, but we are careful not to get into debt either, and I think this is very important to living comfortably.

If you want to be a stay at home mom, than dont let anyone stop you. You dont have to work if theres enough income with one working.

Answer 4

Depending on where you live and what you or your spouse does for a job. One income will cover anything. Although a study I read (I cant remember where) said that to live somewhat comfortably you need to have an income of at least 60k a year. If you have kids then you need a little bit more a year.

Answer 5

well my husband and i have 3 kids and he is the only one who works. we feel that me being home with the kids is more important than having multitudes of money. He makes enuf to feed us and pay the bills we even have enuf for a few non ess. every once in a while it all takes a good balancing act. but it can be done. Unless the one that works has a really really good paying job you may not have every thing you want but you should be able to have everything you need. you might just have to set up new views of what you need and dont need. for instance you dont need a brand new car every 5 years. a good reliable used car is just as good if not better (for one the older cars are easyer to fix your self and that saves alot of money sending it to the shop) and Mc Donalds with the kids is more fun than shopping for hours (and hurting your feet) at the mall with friends. We have a very fullfilling happy life with only my husbands one income. by the way he makes appx $900 every two weeks. we have lights a house phone we both have cell phones, i have a 94 ford sation wagon that it takes about $30 to fill up and i can drive for two weeks on one tank of gas. We have plenty of food. The kids have new shoes when they need them ($10-$12 shoes not $100 ones) there just as good and when you have 3 boys under the age of 6 the cheaper the shoes and clothes the better cause they just distroy them anyway! But we are warm in the winter and cool in the summer and even go on little family excursions to the local lake beach for camping trips (instead of "the beach") a differnce of at least $400 dollers!! we can go camping for a week for $18 when if we whent to the beach (by the ocean) it would be about $300 just for a hotel room for 5 for a weekend, plus the gas to get there. NO we dont live high on the hog but we do live well. its all in what you want. and if you are going to have a family it is always better for the children to have mommy than a nanny any day.

Answer 6

I suppose it would depend on what you need. If one person in the family, for instance, makes over $100,000 a year, then there may only be a need for one income where as if one person makes $30,000 a year, there may be a need for two incomes in that specific household.

Answer 7

It depends on the size of the family and the income being earned. My family has six people and one source of income and we're doing just fine.

Answer 8

You cant afford to and you cant afford not to...
heres why... the cost of daycare is so much if you are not making alot of money its not worth it just to have enough left to pay for the gas to get there. So, if you have kids, sometimes its cheaper to pay yourself to stay home with them, or work from home.
Its hard to make ends meet with only one income too. Its a double edged sword for most moms.

Answer 9

I know alot of woman that stay at home and watch the kids it is not uncommon, as long as someone has a decent income to support it

Answer 10

Why stop at two? I have a dozen or so.

Have you ever heard of Robert Allen and his Multiple Streams of Income series?