Planning a budget around one income for a year

Both of these worries are fair, and they're two halves of the same plan. The earning partner needs proof the math holds. The other partner needs to know that a year off the payroll doesn't mean a year without a voice. The approach below handles the arithmetic first and the fairness second, and it starts well before the change.

Start with the one number that matters

Take-home pay, not salary. Look at a recent pay stub for the continuing income and note what actually lands in the account after taxes, retirement contributions and benefit premiums.

Two things can shift that number once you're on one income:

• Health insurance. If the departing partner had coverage through their job, they'll likely move to the earner's plan, which can raise the earner's premium. Employer plans must allow you to add a spouse after losing other coverage, per the Department of Labor's special enrollment rules; the window is at least 30 days. COBRA is another option, usually at full cost.
• Withholding. If your tax situation changes, use the IRS Tax Withholding Estimator on IRS.gov to see whether the earner's W-4 needs adjusting so you're not surprised in April.

Rebuild the budget from zero

Sort every expense into four columns. Here's a skeleton to fill in with your own figures:

Category	Keep as is	Trim	Pause for the year
Housing and utilities	Rent or mortgage	Thermostat, phone plan
Food	Groceries	Dining out	Meal kits
Transportation	Car payment, insurance	Gas, rideshare	Second car?
Subscriptions	One or two		The rest
Savings	Emergency fund	Retirement, if needed	Vacation fund
Personal money	Equal amount each

Add up the "keep" and "trim" columns. If they fit within the one take-home pay with a margin left over, you have a plan. If not, the "pause" column is where the negotiation happens, together.

Run a dry run

This is the step that turns worry into evidence. For about three months before the income stops, live on the one-income budget while the second paycheck still arrives, and send that second paycheck straight to savings.

You get three things at once:

1. Proof, or not, that the budget is livable.
2. A cushion built from the money you didn't spend.
3. Time to adjust before the change is real.

If the dry run strains, fix the budget before the change, not during it.

Keep retirement from going quiet

A year without a paycheck is often a year without retirement contributions for the non-earning partner. One tool helps: per IRS Publication 590-A, a spouse with little or no compensation can contribute to an IRA based on the working spouse's compensation, if you file a joint return. The annual limit changes; check the current year's figure on IRS.gov. Unmarried couples can't use this rule, which is worth knowing up front.

The fairness part

This is where the second voice matters most.

• Equal personal money. Each of you gets the same amount for personal spending, no receipts required, regardless of who earns. This one rule removes most of the "do I need permission" feeling.
• Name the work. Caregiving, schooling and running a household have real value. Saying so out loud, and writing why you chose this year, helps when the budget feels tight.
• Shared visibility. Both of you can see every account. No one manages the money alone.
• An end date. Write down when you'll reassess: a graduation, a return-to-work date, a check-in at month six.

Monthly check-in

Fifteen minutes, once a month: did we stay inside the budget, what surprised us, is the cushion holding? If you'd like a structure for a longer version, the yearly money date agenda works well at the halfway mark.

A year on one income is a project with a start and an end. Treat it like one, and both of you get to finish it on the same side.