The economic climate today has taken a severe tumble for the worse. Many people have lost jobs and savings and are struggling to meet their financial obligations and still maintain a reasonable standard of living. Survival on a single income is a strange concept, not something many anticipate a return to.

The single income route is not an easy one for either the man or woman of the house. Hopefully, government incentive programs will create a turnaround in the economy before the current situation becomes worse.

The first question you need to ask is whether you can make a go on a single income. Likely you will need to use some of your savings as a buffer while you adjust to one income. But since the average American simply hasn't saved much and is only two months away from bankruptcy, a single source means a severe cutback on lifestyle unless that second source of income is found quickly.

Single income living demands you take a close look at your expenses. For most families, quite a lot of it is going toward unnecessary luxuries, nor do they have any budget or plan on using the money they have. The best way is to keep a ledger and write down every dollar spent. It is one good way to find the areas where those dollars go that don't return any investment.

Next you need to analyze all your bills. Credit card debt is a major problem. The average family has some 17 credit cards and that means a lot of debt. If it becomes difficult to pay off the minimum balance you should contact the credit provider to make suitable payment arrangements. The best strategy is to cut up your cards and keep only two to use for emergencies only.

There is little that can be done with taxes, heating bills, insurance and loans, but there are steps you can take even in these areas that can save you money.

Grocery shopping is a necessity, but there are several methods where you can shave off as much as 30% of your current expenses on food. Using coupons, buying in bulk and creating your own meals instead of buying prepackaged, throw-in-the-microwave can save a good deal of money.

Entertainment is another area where you can save some needed dollars. Eating out and the movies are a luxury, but you pay for the convenience. Consider the tips, alcohol, popcorn and chips and that evening out costs upwards of a hundred dollars plus. Instead of the movies, rent a video.

While we all need clothing, it's not necessary to keep up with the latest fashion trends. That closet of unused clothing can be varied to create unique styles. There's no shame in hand-me-downs or buying at thrift shops. Dry cleaning is not a necessity except for clothing that enhances your appearance at work. The washer in many homes sits idle as many people prefer the easy route of a laundry service. Dry your clothing outdoors instead of the dryer to save on your electrical bills. Being frugal with buying clothes can translate into a 50% saving on buying new.

Next to appliances, furniture is one of the family's major expenses. You don't need to buy new. Be attentive for discount and close-out sales where you can pick up good furniture for less that you would at a well-known furniture retailer.

Lastly comes those little expenses. That pack of cigarettes costs you more than just your health. Eliminating that extra cup of coffee and donuts or eating at the company cafeteria can save you as much as $1250 per year based on an average expense of $5 a day. Workplace gifts, cards, cakes and other contributions only add to the totals. that you're often asked to contribute to.

Many families discover that single income living isn't as bad as they thought. That second job often creates more expenses than is necessary. Before you take the step to a one-income family, plan ahead. Make up a budget that you can live with and discipline yourself to stay with it. It's good discipline and will help you prosper even more once the economy starts a turnaround.