Happy new year! And with it, whoa, first parenting-related article in a while, just to keep things interesting. Without further delay, let’s dive straight into it. One of the first things you have to figure out when you realize that you want to stay home with your kids is whether or not you can afford to do so. If you are used to living on two incomes, so making the switch to a single income may not be easy. However, it may not be as hard as you think.
If you already have children, the first thing that goes away when you decide to stay at home is the cost of day care. However, if you work at home, part of that cost may remain, unless your work is such that you can keep the children home with you. Take a look at how much of your income right now is going to day care. That cost alone may prove to you that you don’t need a high-paying work at home job to stay home – a simpler one may suffice.
There are several other costs that will drop if you stay at home. You’ll be in a different tax bracket. You’ll probably drive less, eat out less often and you won’t need clothes for work, which can save both on shopping and on dry cleaning bills. When you’re figuring out how much it costs you to work outside the home, don’t assume that becoming a stay at home or work at home parent will cause you to stop eating out. You will have those days where you decide to take the kids out, more likely than not.
One thing many parents forget to think about when they decide to stay at home is to handle retirement planning. Now, if you’re just staying home for a year or two, it’s probably not a big deal, but if you plan on staying home for many years, this can be a huge impact on you when you do retire. You may not have the finances to fund your retirement account well when your family is living on only one income, but you should try to do at least a little. See my article on retirement planning for stay at home parents for more information.
Use this information to figure out what you will need to earn while staying at home. Some will be fine as a single income family, but others will need the stay at home parent to earn some kind of income. Ideally, this will be a relatively small amount, as the whole point of having a stay at home parent is to have more time with the kids and benefit them, not maintain a freely spending lifestyle.
However, if a single income isn’t enough, a work at home job or home business will likely become necessary. Figure out how much income will be necessary and how much risk you are willing to take. Work at home jobs are harder to come by, but home businesses are by their nature more risky, and it may take a few years to earn an adequate income from a business. Plan accordingly, and know that you might not be able to live your preferred lifestyle right away.
Fortunately, by the time you take out the costs of working outside the home, you will likely find you don’t need to earn what you used to. Half or even less of your previous income may be quite adequate. It may require sacrifice, but that’s what being a parent is about.
If you do decide to become a stay-at-home parent, one big tip is that you should still have a hobby, no matter how busy you are. Being a parent is stressful, and having a hobby can replace negative thoughts with positive ones. Hobbies can also help you parent better and allow you to maintain your autonomous identity. This models healthy habits and boundaries for our kids. Hope this helps.
Disclaimer: Some of the links on this site are affiliate links, which means that we get a small commission if you choose to get the product. However, rest assured that we will NEVER recommend anything that doesn't have a good reputation in the industry :)
Mark is an all-rounded guy with dreams, aspirations, and a desire to be a better version of himself. Having conquered obesity, he set-up Granite Fitness to help regular people get in shape and stay healthy. Mark spends his days helping distressed Uni students through difficult situations. He holds three science degrees and a Diploma of Christian counselling. In his spare time, Mark does freelancing and runs a series of online operations with his business partner Atanas. Connect with Mark @ http://au.linkedin.com/in/marksptan