Living Simply is Less Complicated Than You Think

SWITCHING FROM TWO INCOMES TO ONE: 28 percent of people in a recent national study said they had voluntarily made changes in the past five years that resulted in making less money. Tips from Valerie Young, publisher of the newsletter Changing Course, for two-income families who'd like to get by on one income:

Make sure everyone is on the same team. Be certain you share the same goals financially and personally. The time to discuss living on one income is before anyone gives two weeks' notice.

Start spending less now. Try living on one income for three months while both still are employed. Make a plan to eliminate credit-card debt and get into the habit of paying cash for purchases.
Set a target date for taking the leap. Besides motivation, "D-day" lets you know when you have to have your financial house in order.
Make major purchases before you leap. It'll be easier. But make sure you don't rack up debt.
Don't burn your bridges. Sure, it feels great to leave, but you might want to come back when the kids are older. And former employers are often the first source of freelance work.

SOURCES FOR SIMPLE LIVING: Voluntary simplicity may not be everyone's cup of tea, but financial security surely is. Several books on simple living and frugality offer suggestions adaptable for anyone trying to live within a budget -- and save for the future:

Tame your impulses. Getting a Life by Jacqueline Blix and David Heitmiller has good ideas about cutting back on impulse buying, including a "Buying Binge Emergency Card" that includes questions like "Is this purchase in alignment with my values and goals?" and "Would I buy this if I had to pay cash?"
Inspire yourself to invest. "To get yourself fired up about how much you can earn by investing, use the Rule of 72," Janet Luhrs advises in her new Simple Living Guide. "This tells you how long it will take your money to double. Divide 72 by the interest rate you are getting. ... If you invest $5,000 at 10 percent, you divide 72 by 10, which yields 7.2 years. After 7.2 years, you will have $10,000."
Learn to share. "Both a borrower and a lender be," Juliet Schor advises in her new book, The Overspent American. "Instead of joining the stampede for expensive riding mowers, what if you and a dozen of the families on the street got together and bought a couple of mowers for everyone's use?"