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Our culture today values and praises women working outside of the home. We want to say that having a mom, or even a dad, in the home to take care of kids is a good and wholesome endeavor that should be honored and encouraged.

Ideally, the 2 income household should be the exception, not the rule, but we face today’s economic challenges making this more and more common.

Yet, we also recognize that in our current day and age, a single income household is now the exception, not the rule. So, while we are talking about how to approach a 2-income household, don’t take this as a whole-hearted endorsement that everyone should have a 2 income household. Good stewardship is not just about managing your money well, it’s also about managing your resources, including your family and children well. Some families may sacrifice financially, for example, in the luxuries of life and personal comfort/pampering in order to excel in the stewardship of their children. That is good and should be commended. 

Today we will be exploring some ways to manage a two-income household.  It can be a blessing, but it will also provide you with multiple challenges!

 

Types of 2-Income Households

First of all, there are 2 different kinds of 2-income households.  Now there will always be exceptions to the rule, but these are 2 main categories:

  1. Involuntary 2 income family (no choice) – when you have young children at home, and you are forced to put them in daycare or schooling because of your personal financial reality.
  2. Voluntary 2 income family (choice) – You typically have older couples whose children are out of the home, or couples with no children at all. (DINKs).
    • A biblical example of a woman having a business or working outside the home is Lydia:
      • Lydia’s business involved selling purple fabrics, which were highly valued in ancient times for their luxury and expense. As a seller of purple, she likely catered to the affluent elite, as purple dye was costly and associated with royalty and prestige. Her profession indicates she was successful and prosperous, given the market demand for such goods. This trade background adds depth to her character, showcasing her entrepreneurial spirit and financial independence in a male-dominated society (Acts 16:14). It is also good to know that the Biblical text does not speak to or against Lydia being married…but if she was, she would have been an amazing woman
    • A second Biblical example of a woman at work is the Proverbs 31 woman:
      • The Proverbs 31 woman,, is depicted as an industrious entrepreneur, engaging in various business activities. She buys fields and plants vineyards, indicating involvement in agriculture. She also works with wool and flax, suggesting a textile industry presence. Additionally, she sells her products in the market, displaying a knack for commerce. Her trading extends beyond local markets, as she provides goods for merchants. This woman’s diverse business ventures demonstrate her resourcefulness, diligence, and financial acumen, setting her apart as a model of wisdom and virtuous living (Proverbs 31:16-24). The Proverbs 31 woman is portrayed within the context of her marriage and family life, showcasing her role as a supportive and respected wife alongside her entrepreneurial endeavors.

So we have these two basic households.  An involuntary and also a voluntary decision to have a second income.  If this is you, let’s take a look at some good solid tips for managing a two income household:

How to Manage a 2-Income Household

Some of the principles to follow are true regarding 1 or 2 incomes.

Open communication

Discuss things openly. Don’t let money become a taboo subject in your home. In Life Institute’s Stewardship Lifestyle Seminar, I am hearing more and more that couples are NOT having regular money discussions!  They would much rather “bury their heads in the sand” and only talk about money when it becomes an issue! Almost ALWAYS, that is TOO LATE!  The damage has been done and then they try to take the wrinkles out of the balled up piece of paper; it just does not happen easily!

The Bible emphasizes the importance of open communication in relationships as a means of fostering unity, understanding, and mutual respect. This applies to all relationships, but is especially important in a marriage.

  • Ephesians 4:15 encourages speaking the truth in love, promoting honesty and transparency in communication. 
  • Ephesians 4:26 advises not letting the sun go down on unresolved anger, urging couples to address conflicts promptly to prevent bitterness from taking root. 
  • Proverbs 15:1 underscores the power of gentle words in diffusing tension and promoting reconciliation.
  • Proverbs 18:13 warns against answering before listening, emphasizing the importance of active listening and empathy in communication. 
  • Proverbs 15:22 highlights the value of seeking counsel and wisdom from others, indicating that couples can benefit from outside perspectives and advice.

 

Combine your finances

If you have a Christ-centered marriage, or you want one, remember…”the two have become one flesh!”  It’s not his and hers… it’s “ours!” 

Don’t think that just because you make the money that you can spend it without consulting your spouse, and especially the family budget. You can create a budget for “fun money” that you don’t need to consult the other for, but those monies should not violate the purpose and plan of your budget. We cannot say this louder and clearer: have ALL the money (both incomes) come into one account, and have all the expenses come out of that same account.

 

Create a budget

When you are creating a budget, here are some simple steps and tips as you go through the creation process:

  • Zero-sum budget. Know where every dollar goes!
    • Give every dollar a name (category), and only change its name with a conversation with your spouse.
  • Agree on the budget. (Both of you on “green light”).
    • If there is any ambiguity, pause, pray and process before moving on.
    • If you do not work out the discrepancies now in the creation of the budget, you WILL have complications and disagreements later on!
  • Be in agreement beforehand with how to allocate surplus income.
    • This is an important aspect to decide on.
      • If there are certain needs or goals (pay down debt), there needs to be an agreement on what the “extra” monies will go toward BEFORE HAND.  If this is not done, more often than not, the extra monies will be whittled away on un-needed and potentially frivolous things.

If you need help creating a budget, head back to episodes 16 and 17, for it is there that we will walk you through the process of creating a budget that actually works!

 

Figure out your strengths and temperament, then assign responsibilities

One spouse may be totally comfortable driving the day-to-day aspects of the budget, and that is okay!  Assign that role and make sure the other spouse has a part also, and they are not just off to the side observing!  They need to know what is going on and how to help, or take over if there is a need or emergency!

But be sure to maintain clear and open communication. We talked about this earlier, but we cannot say this enough times in this episode! The temptation is for one spouse to take control of their finances and leave their spouse out of the loop, with little to no ongoing knowledge of the day-to-day household financial operations, is a potential disaster!  If you are clear and open with communications on a weekly or monthly basis, having financial conversations in your household will become the norm, and not a conflict WHEN the financial challenges come your way!

 

Set goals!

We touched on this earlier with the “extra” money.  But you should do this with all of your income! If you don’t have financial goals, you have nothing to aim for and nothing to work towards. If you have no goals, your budget is a moot point and you are simply surviving or possibly drowning!

Be sure to follow the Biblical Financial Priorities of Stewardship as you process your goals. 

  • Give – of your first fruits unto the Lord (Church’s general fund)
  • Save – to provide and protect your family
  • Spend – be a good testimony and pay your bills on time every time
  • Offerings – be a blessing to others…$5 or $500 a month!
  • Luxuries – enjoy the fruit of your labors…for God has given us ALL things to ENJOY! (1 Tim. 6:17)

And remember, as you have this journey to set and accomplish your financial and stewardship goals, have some fun along the way!

 

Emergency fund 

This is an important part of keeping your head above water financially and leveling out the financial challenges that will come your way! Have some funds stashed away to get through the emergencies of life! What if one of you loses a job, a tire pops, or your roof leaks? You need funds to deal with these surprise expenses so that you don’t go into debt! More and more people are relying on credit cards in their emergency times…and sadly, they never recoup the expense and wind up carrying debt month after month…to the tune of up to 34%!

The amount in your emergency fund will need to change depending on your stage of life.

  • Start with $1,000
  • Build your emergency fund to 3-6 months of living expenses
  • Invest the surplus to meet future goals (retirement, house, cars…)

If you both work for the same company, you need to not think that you can cut back to one income. If the company goes under, you both are out of a job. Look ahead and see the evil (Prov. 27:12)….and be prepared, just in case, both incomes are lost.

 

Retirement Planning

Because you are both working, you both may receive a potentially large Social Security Income in retirement years. If this is you and your spouse, this will create a potential disruption to the retirement budget at the first death of a spouse. Because of this, there is more of a need than ever to save for retirement using methods like:

  • Roth/Trad 401k
  • Roth/Trad IRA
  • Other retirement accounts.

If you are both working, check with your companies and see if they offer a retirement contribution match.  If this is the case, you both need to contribute what is needed to obtain the maximum retirement savings match. Consider speaking to a financial professional to learn about where you are in your retirement savings journey and with that, learn how to make the needed adjustments today to secure a better financial future for you and your spouse.

 

Review your financial picture regularly 

The reality is, your budget will change over time, and in the beginning of putting one together, it will change almost monthly! Expenses go up. Living costs go up. Incomes change. Life’s circumstances get in the way. You need to think of your budget as a “living document.” It needs to live with you and be changed/updated on a regular basis. You need to be proactive in reviewing your financial picture regularly. Get together a minimum of once, but preference would be twice a year to talk about it! What should be looked at and discussed is:

  • Your budget (on target, need changes?)
  • Retirement plan statements (Look at them, or make a meeting with your financial advisor for more clarity and understanding)
  • Assets & Liabilities. It would be helpful to have a single document with all of your financial documents, and make sure to keep it updated!

 

Seek advice from a professional

Not everyone needs a financial advisor, but we all need financial advice! Life Financial Group, Life Institute and Stewardology Podcast all offer as a ministry, free Personal Stewardship Reviews.

These Personal Stewardship Reviews are a comprehensive financial checkup to help your family and individuals examine where you are now, inquire where you want to go, and come up with a customized game plan that will steer you in the right direction and/or fill the gaps that would keep you from meeting your financial and stewardship goals.

 

Stewardship Application

If you are a two income family, go ahead and try to live on one income and save the other.

If you need some of the second income to make ends meet, that is okay.  Use some…but do your best to save as much as you can from the second income. 

Also, it is very important to keep an open line of communication with your spouse about your finances! Don’t let money become a taboo subject that you are afraid to talk about. For the more you talk about it, the easier it gets, and the more you will become on the same page with the stewardship of what the Lord has put into your care!

 

Next Steps

 

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The topics discussed in this podcast are for general information only and are not intended to provide specific investment advice or recommendations.Investing and investment strategies involve risk including the potential loss of principal. Past performance is not a guarantee of future results.

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