| One of the biggest worries people have when | | | | very expensive, as can taxes. Some people find |
| they decide to be a stay at home parent is how | | | | that they are actually losing money by living on |
| it will impact their finances. "Everyone knows" you | | | | two incomes! |
| need two incomes just to scrape by these days, | | | | Now is the time to figure out your budget. This is |
| right? | | | | not a popular activity for most people, but if you |
| Not necessarily. | | | | want to find a way to be a stay at home parent, |
| Depending on your income, number of children | | | | you need a solid look at your expenses. Here's a |
| and what you spend related to working, you | | | | list: |
| might actually be losing money or doing only a | | | | Housing (mortgage, rent, property taxes, HOA |
| little better than breaking even by having a | | | | fees, insurance) |
| second income. That second income puts you in a | | | | Electricity |
| higher tax bracket as well. | | | | Gas |
| It is important to be realistic about which | | | | Phone (regular and cell, if relevant) |
| expenses will really go down if you become a | | | | Cable or satellite television |
| stay at home parent. You'll probably eat out less | | | | Internet connection |
| often. You won't spend so much on dry cleaning. | | | | Water/Sewer |
| You'll drive less. Will these items go to zero? | | | | Upkeep |
| Probably not. | | | | Medical and Dental insurance, other insurance |
| However, calculating how much money you are | | | | Car (payments, fuel, maintenance, insurance, |
| actually bringing home to cover expenses not | | | | registration) |
| related to working is not always easy. You have | | | | Credit card payments |
| to figure out what you would have paid in taxes if | | | | Clothing |
| you weren't a dual income home. You also need | | | | Groceries |
| to think about the expenses of being at home. | | | | Eating out |
| Here's a simple list of typical expenses related to | | | | Family Activities |
| work: | | | | Personal grooming |
| State, Local and Federal taxes | | | | Gifts |
| Childcare | | | | Emergencies |
| Commuting (fuel, maintenance, etc.) | | | | Savings |
| Car insurance | | | | Other |
| Clothing | | | | Try your best to account for all your expenses. |
| Eating out | | | | Estimate as necessary, and remember many |
| Grooming | | | | expenses will vary by the time of year. Think |
| Housekeeping help (if used) | | | | about heating bills in winter, for example, as well |
| Incidentals | | | | as birthday and holiday gifts. |
| Add these up as they relate to your job. You can | | | | If these can't be covered by a single income, it's |
| estimate the tax difference just by looking at | | | | not time to give up on being a stay at home |
| your withholding, but remember that working is | | | | parent yet! First you need to see what can be |
| increasing your tax rate, so the difference there | | | | cut. Do you really need so many channels of |
| may be more than you expect, which is always a | | | | television to watch? Cell phone? How often do |
| good thing. | | | | you really need to eat out? Can you cut back on |
| Remember that just because you aren't working | | | | convenience foods at the grocery store? |
| outside the home you aren't going to stop driving, | | | | Still not enough? You might need to find a way to |
| buying clothes, eating out or taking care of | | | | earn money from home. This is really not so |
| yourself. These costs will decrease, but when | | | | difficult as you might think. Legitimate work at |
| you're looking at whether or not you can really | | | | home jobs are few and far between for many |
| afford to stay at home you want to include these | | | | people, but certainly not impossible to find. Work |
| things in your budget or be in for a nasty surprise | | | | at home business opportunities are all over the |
| when the bills come due. | | | | place, from the classic direct sales opportunities to |
| It is not uncommon to find that you get less than | | | | starting a business all on your own. It all depends |
| half or even less than a quarter of your income | | | | on your skills, interests and willingness to take a |
| to help towards non-work expenses by the time | | | | chance. |
| you figure it all out. Childcare in particular can be | | | | |