American two-income families earn 75 percent more than their single-income
counterparts of a generation ago, but actually have less discretionary
income according to Elizabeth Warren and Amelai Tyagi in their book the
Two Income Trap.
The idea that your family earns more money but has less to spend may be
discouraging unless you'd like to be an at-home parent. The truth is jobs,
particularly second jobs, are expensive. When I worked outside the home
as a social worker, I made about $28,000 per year, which combined with
my husband's income, was a decent income. But we were always broke, running
out of money before the end of the month. It seemed like it would be impossible
for me to quit my job when we could barely get by as it was. But then I learned about the dual-income myth and when I ran the numbers,
I discovered that 2/3rds of my income paid for work-related expenses.
Of my $28,000 per year income, only $7,900 actually contributed to the
family budget. The rest paid for things so I could work.
If you would like to join the 5 million moms or 3 million dads who
stay home, here are some tips to help you afford it.
Determine how much your second income costs:
When I worked, the majority of my income went to taxes, childcare, extra expenses for nicer second car, commuting, work clothes, convenience
foods and dining out, "I-deserve-this-because-I-work-hard"
and guilt items for the kids.
Determine what you need to live on:
Now that you know how much your job costs you, what would happen if
you quit? This exercise will show you two things;
How much short, if any, you would be by having online one income
and
Areas that you currently over-spend that you can cut back on.
Cut back on food costs.
You can save a significant amount of money by menu planning and shopping
with a list. You can also save by not buying packaged foods and instead
cooking from scratch. Not only will the food taste better
and be better for you, but also it often only involves a couple extra
steps. Avoid dining out including lunches, vending machines, and the
coffeehouse.
Nickels and Dimes.
This is usually a bigger area of excess than most people realize. Spending
a few dollars here and a few dollars there doesn't seem like it would
make a big difference. But when added all together, it can cost several
hundred dollars per month. Items in this category include things like
coffee at the local cafe, magazines, paperback books, manicures, a quick
snack on the way home, etc. The best way to avoid wasting money on the
small stuff is to not carry cash or its equivalent (credit cards/checks),
shop only with a list, use libraries and barter groups for books, videos
and other items, and learn to pamper yourself at home.
You can cut back on home and auto expenses easily.
Making sure your home is weather sealed (your utility company will likely
have tips on this) and keeping appliances clean and tuned will help
save on your electric bill. Install low flow water faucets to help save
on water costs. Get rid of extra features on your phone and shop for
the best long distance based on your use. Forgo the movie channels and
opt instead to have basic cable or satellite service. Use your library
to rent movies instead of pay-per-view or movie channels. For your car,
opt to get a quality used car that gets good gas mileage. These not
only can save you on payments and gas, but also on personal property tax, registration and insurance.
For many families, even savvy shopping doesn't completely eliminate the
need for extra cash. This is particularly true when debt is involved.
However, if you eliminate work-related expenses, cut unnecessary items
from your budget, and learn easy ways to save, the income you need to earn should be significantly less than you originally thought.
In my case, I didn't have to replace a $2300 per month income. After I
cut out work-expenses, sold my car and got a less expensive model, and
cut back on household expense, I only needed to earn about $600 per month
to stay home.
I could work 40 hours per week for $658 in discretionary income or I could
stay-home, work part-time from home and earn the same. Hmm ...what choice
would you make?
If you're like I was and need to earn some extra money to stay home, its
not hard if you go about it the right way. Do lots of research and heed
the experts' warnings about envelope stuffing and other scams. Don't fall
for "pay for a job" scams or sign-up to do nothing schemes.
Working at home is work no matter what work-at-home schemers would have
you think. If you do your research right, and choose the right work-at-home
option for you, there is no reason why you can stay and work at home.
Leslie Truex is a work and stay-at-home mom who has been helping
people stay and work at home since 1998. Get her free Afford to Stay Home
workbook and create a plan to quit your job and stay home
