Do you NEED 2 incomes?

[disneysteve]

This subject came up in another thread and a couple of people suggested that in today's society, 2 incomes is all but a necessity to live comfortably. I disagreed with that, but I'm curious to hear what everyone else thinks. Perhaps my point of view is distorted because of my personal income, but I have plenty of friends and relatives who earn less than me and I see how they live. Many are 2-income households and they have lots of luxuries and amenities that makes it not hard to see why they feel they need that 2nd income. I think a lot of them could do just fine on one income if they wanted to if they were just willing to trim some of the fat from their lifestyles and spending habits.

Obviously, whether or not you really need 2 incomes depends a lot on how much the 1 income is. If you are earning minimum wage, you likely need at least 2 incomes to support a family and probably each need 2nd jobs as well. But if one partner earns a decent amount, at or above the national median, is it really impossible to lead a decent life without another income?

Any time this topic comes up, I'm always reminded of a comment a friend made once. She and her husband are both teachers. She was always complaining about working and how much of a hassle it was and on and on. When I asked why she doesn't just stay at home, she said that she had to work or else they couldn't afford daycare. Somehow, it just didn't occur to her that if she stayed at home, they wouldn't need daycare.

[Caoineag]

We don't NEED two incomes but the one person working would never be able to retire. We use that second income to make life comfortable and to be able to save quite a bit of money for retirement and travel. Later in our careers, we probably could even do all of that on one income but our savings will climb faster with both of us working.

That said, we both NEED an outside job for our sanity. You could never convince me to stay home all day, every day. Its not that housekeeping isn't work, it is but that type of work would be mind numbing for me because I take no pleasure in that kind of work.

[pfblueprint]

I think your last sentence hit the nail on the head, we don't often challenge our assumptions. Many people don't need two cars, it's simply more convenient. You don't need many of your magazine subscriptions or your Netflix account, nor do you need to eat meat (per pound it's far more expensive than most vegetables).

[anonymous_saver]

I would say we definitely don't NEED two incomes. It's all about choices, we have chosen not to have cars or kids, so our expenses are much lower than most people.

That being said, if one of us didn't work, it wouldn't make sense for us. Since we don't have kids, if one of us didn't work, we would just be sitting around with not much to do.

We are planning on retiring ealier than most people as well, again it's because of the no cars or kids thing that we might be more able to do this.

Good question.

[noppenbd]

We could not do without either my or my wife's income. In our case, I earn the majority of the income for the household while my wife's job provides health benefits. Without either one of those we would be in serious trouble.

[rizzmo]

My income is above the national median and we don't need my wife's income to live comfortably. However, we do need her income to meet our retirement and life goals.

[jIM_Ohio]

We have two incomes and as of last calculation, we only need 1.5. If we did not save and did not have a mortgage, we could live on less than my wife makes and about half or 2/3 what I make.

The interesting part of "needing two incomes" is those are probably the people without much savings or long term plan.

[DebbieL]

We need two incomes where I live to be able to support ourselves. Once I've finished my degree it would probably be possible to live okay on my income, but DH and I would never be satisfied with only one of us working (at least on any permanent basis).

[LivingAlmostLarge]

No we don't need two incomes. BUT it is nice. And it gets us to our savings goals faster.

[boosami]

I am not married, but if I were we would not need a second income. My income is high and stable enough through my career and passive investements to support a family. I have always assumed to have my wife stay at home with the family instead of working. As Steve mentioned, that doesn't bring in the money but it definitely saves the cost of outsource that same stuff.

[glock35ipsc]

We don't NEED two incomes but the one person working would never be able to retire. We use that second income to make life comfortable and to be able to save quite a bit of money for retirement and travel. Later in our careers, we probably could even do all of that on one income but our savings will climb faster with both of us working.

That said, we both NEED an outside job for our sanity. You could never convince me to stay home all day, every day. Its not that housekeeping isn't work, it is but that type of work would be mind numbing for me because I take no pleasure in that kind of work.

Hmmm, your post sounds as is I typed it!

My wife is actually going to go part-time in about 2 years. We will of course evaluate everything first, but that is our calculated time frame.

[tripods68]

We can live on ONE INCOME but it would be really tight living in HIGH COLA area like California. We may have to move to a different state if we end with one sole breadwinner. And we wouldn't be able to put away almost 35% of our income towards Retirement accounts, excluding our Pensions. CA is one of highest and costly state in the Union with personal income tax of 9.3%, local 7.75%, and state tax 6.0%. It appears, next year ARnold is increasing withholding by 10% to help balance the state budget.

I also think its about lifestyle. My wife loves her job being an RN and I love my job as well. Both of us growing up were VERY independent. I supported myself alone paying for college, while she did the same way. She provides monthly income to help support her family in the Philippiness. We can't imagine ourselves to NOT work at all. It not part of DNA. And yet, we still manage to spend quality time with our kids.

[Gruntina]

I do live in a very high cost of living area in CA! We do use both of our income to live on but heading on a plan to become one income in about a year. When that time has come, we will be saving all of my income.

Today's time is also different compared to 15-20 years ago. It is common for women to go to college, have careers, and purchase their own starter home and the like. We are not very much like the ladies in waiting type where we depend on the man’s income for survival.

With that being said, some marriage started with two sets of assets and/or debts and needs to be worked out as a couple and it can take time to sort things through.

Another perspective... My employer offers excellent health benefits, matching 401k program and other perks while my husband's employer does not. At the same time, my husband is bringing home the big money. This works out the best for our situation.

[moneybags]

We live on less than one income, and I think we're in an above average cost of living area (not CA - ). For the last 17 years, we've lived with the philosophy of not growing into our income, so we live on far less than DH makes. I make a little working PT, but it all goes into retirement savings. I will return to work FT when the kiddies are in college.

[maat55]

I have always believed you should live on one income. If it means living in less house, car, whatever. We live off my income and invest hers.(Saving for cars included in hers)