How One Family Went from Two Incomes to One -- And Developed a Business in the Process

Anyone read the book Miserly Moms: Living Well on Less in a Tough Economy? It was written by Jonni McCoy originally in 1994 as an extension of what was happening in her own life. Here's the scenario she faced prior to this time:

• She and her husband lived in San Francisco (a very expensive part of the country.)
• They had a child and Jonni wanted to stay home to care for him.
• Since the family couldn't afford to live on one salary (or so they thought) since Jonni earned 50% of the couple's income, she arranged a job-sharing situation at work.
• They kept at this for several years until it became too much for her to handle. The family needed/wanted a change.
• They considered moving to a less expensive community far outside San Francisco so they could live on the husband's salary alone. They made an offer on a home and had one on theirs as well. But at the last moment they decided that this option wouldn't work either since it would require the husband to commute several hours each day. So they backed out of both offers. Unfortunately, Jonni had already quit her job.
• Their choices were for her to find a new job or for them to cut expenses so they could live on the husband's salary alone.
• They calculated what they would save by Jonni not working (which was a ton) and that got them a good part of the way to where they needed to be.
• She decided to make up the difference by saving money any way she could. As she discovered money saving tip after money saving tip, she started writing them down in a notebook. Friends started borrowing and copying the notebook so they could save as well.
• Ultimately, she turned the notebook into a book (Miserly Moms: Living Well on Less in a Tough Economy) and has since sold over 150,000 copies of it. She's now an author and speaker on how to save money.

What a great story, huh? I heard her interviewed on a radio show a few weeks ago and checked out her book from the library. I'll be sharing some tidbits from it over the next week or two. Much of the book focuses on what she calls their biggest non-fixed expense -- groceries/food -- but she has other money saving tips as well. I'll post the highlights and we can discuss them. I think it will be both fun and educational and I'm looking forward to your thoughts on her tips as well.

Stay tuned!

Comments

[PMT]

My wife and I decided to have her be a stay at home mom even though she has the much much higher earning potential with her degree and experience. She continues to work part-time teaching at the community college but I know some day that too will have to go as our family grows. We've at least identified that want and hopefully can make it happen over the next couple of years.

[Everyday Tips]

I panicked just reading your summary. I too may check out the book, because I would love how she was able to reduce expenses enough to make up for a lost income.

[MC]

Doesn't she make a lot from her blog/book?

I'm thinking that's the main reason she can afford not to work while they still live in San Fran...not something that anyone can do just by clipping coupons etc.

[U. Romilion]

I agree reducing expenses is a great - and necessary - step in a situation like hers: when incomes drop, costs have to follow. What's really fascinating here is, though, that she actually wnet on and built a business from this necessary evil.

The "lemonade out of lemons" aspect is what I really like in this story, and that's also the direction I advocate to anyone who finds herself or himself in a situation even remotely like this one. Having gone through a near-miss incident myself that very easily could have had a more dramatic ending, I can only say this: turning that fear and anxiety into positive energy to build a business around the things I knew and liked really made the difference to my life "ever after". I imagine Jonni McCoy could only agree!

[SJ]

My wife and I have a very similar history. Learning to live (and save) off of one salary does present the great opportunity of starting a business with little risk. Whether my wife's business will succeed or not is yet to be determined, but the bills will get paid and the family fed no matter.

[FMF]

MC --

She made ends meet well before she had any source of extra income...

[Laura]

This story sounds similar to that of Amy Dacyczyn, who wrote The Tightwad Gazette.