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Adjusting to one income again

February 21st, 2007 at 09:45 am

2/12 was DW's last day of work. Her last paycheck came a few days later. So we are officially a one-income household again.

I'm really not expecting it to change much on the spending side since we were investing 80% of her salary in her 403b plan (which I have to figure out what to do with). She was actually only bringing home $156/month, and some of that went into savings, too. I think we'll make that up in less gas usage, less clothing costs, more home cooking and more efficient food shopping. And having her happier and more relaxed already is well worth the lost income.

Where we'll take the hit is in our retirement accounts. She was putting $1,250/month into her 403b. No way we can replace that. Also, I may need to trim back what goes into DD's 529. It used to be $225/month but I increased it to $400/month a couple of years ago. I may drop it back a bit but I'm waiting a month or two to see how everything plays out.

4 Responses to “Adjusting to one income again”

  1. scfr Says:

    disneysteve - Have you ever thought about opening up your own practice and hiring your wife to run the office? While there are downsides to being self-employed, one of the upsides is that you can sock away quite a lot in to a retirement plan (both for you and for your wife) if you want to.

    Or has the "one doctor office" become a thing of the past in this era of HMOs?

  2. disneysteve Says:

    I have zero desire to own my own practice. I don't want the hassles. I am quite content to be an employee even though it does restrain my income quite a bit. I've got a great schedule and great lifestyle which I would sacrifice if I became the boss.

  3. fern Says:

    My BF has a solo practice which he seems quite happy with. Says he's had too many problems trying to work with other doctors who have tried to screw him, one way or the other.

    It's possible to do if you're well-organized and watch expenses, but he has already decided to cut 2 health insurers from his practice becus their reimbursement rates are lower than Medicaire.

  4. monkeymama Says:

    I am with Steve - I wouldn't do it. Who needs the stress of self-employment? (I say that having been there). But it has got to hurt to lose that 401k, regardless of amount taken home. Ouch. Of course you could always look for a new job with better retirement benefits - profit sharing, 401k, etc. Or you'll just have to adjust. Good Luck!

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