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Are you considering becoming a stay-at-home mom or parent?
You need to take a look at how and if you can make this work. This isn’t something to recklessly jump into doing.
Can you afford this?
Is it best for your family financially?
It’s time to take a deeper look at these questions.
Trial Phase
Let’s test out if this is possible. I call this the trial phase.
Let’s just go with the husband/wife scenario where you plan for the wife to stay home and the husband to continue working. Neither of you should quit your job at this point. Continue working and bringing in two incomes.
Now completely live off the one income that you plan to continue receiving.
In this example live fully off your husband’s income. His income should be paying all the bills, mortgage or rent, groceries, utilities, loans, gas, and all other miscellaneous spending.
How are you doing? Are you able to get by? Do you have any money left over at the end of the month for savings?
These are the tough questions that tell you if it is possible to live off this one income.
During this trial phase, start tracking all income and expenses. For some their income is very regular while others may fluctuate. The same can be said about expenses. Recording what typically happens will give you averages to expect in future months.
This isn’t a budget. It’s actually the opposite. You continue living life normally and see what your ‘normal’ income and expenses add up to. This can be a great tool to make a budget in the future.
What are you doing with that other income during the trial phase? (Aka the wife’s income) This money should be put towards building an emergency fund if you do not have one.
Another use for it is to go ahead and pay off some debt before dropping to only one income. For example, if you almost have your car paid off. Go ahead and finish that loan off completely so it is one less bill for your husband to cover.
If you have a small debt you can pay off do it.
Get rid of it.
You could also put this money towards an upcoming event such as a vacation or the holiday season by purchasing gifts.
These sporadic events and expenses will be more difficult to afford once you are living on one income. If you bank up some money for them now you will thank yourself later.
If the trial phase didn’t quite work out and your husband’s income didn’t cover all the bills you will need to financially contribute.
Don’t skip paying your bills! Make record of how much the second income had to contribute to get by. If you were not able to live off the one income it is time to look at what cuts you can make.
Track and discover your trends for both income and expenses.
Hopefully, you learn a lot during this trial time.
Making Cuts and Changes
Ok, so you are through the trial phase.
Maybe you were cutting it close or maybe you made it through fine. Either way, now it is time to start making changes to help save you money. If you want to stay home you may have to make sacrifices.
The question is how bad do you want it?
These are changes to make both before and after making the switch to one income.
These are lifestyle changes. This means don’t make them too drastic. Do things you can live with.
One tip you always hear is cut the cable. By now you probably don’t even have cable. However, is there one service you are paying for that you can cut? This could be Netflix or Tivo for example. What service do you use the least or use the most…but waste time on? Consider finding one service to cut that you can agree on as a family.
Eat out less. This is personal to your lifestyle.
This could mean going from ten times a month to five. It could also be a smaller goal of going from ten times to eight. Every small change helps and adds up.
On the occasions you do go out to eat make a rule that you no longer order appetizers or dessert. Consider cutting out or decreasing expensive drinks while out as well.
This may sound harsh, but if you are going to be a stay-at-home parent you need to start cooking. Find the time, find the energy, and get it done. You don’t have to be an expert just keeping trying and you will learn.
In order to be able to afford to stay home, you need to do less shopping. This is in every part of your life, from groceries to clothing to home décor.
If you stay out of the stores you spend less money.
When it comes to clothing in particular live with less. Just do the laundry more often. It can be that simple. Look at capsule wardrobes for inspiration.
Break with small, but costly habits. Do you get your nails done regularly or are you a frequent flyer at Starbucks? I know some people get the big Gulp or a candy bar every time they go to the gas station.
Create routines that help and support you with these changes. I never go into gas stations. I always pay at the pump, so avoiding temptation is easy for me.
If you cannot break these habits at least space them out. If normally you get Starbucks four times a week cut it down to only on Saturdays as a treat or maybe Monday mornings to kick off the week.
Consider spacing out haircuts an extra week. If your husband gets a $15 haircut every four weeks that’s $195 in haircuts for the year, not counting the tip. Now say he moves to getting his haircut every 5 weeks. That’s $156 in haircuts for the year. You just saved nearly $40 bucks.
To some, that’s not much saved, but when you use this strategy in multiple areas it will add up.
Big Changes
When you were both working adults what did you hire out? Maybe you could afford to have your lawn get mowed or your house cleaned. Did you get your dry cleaning dropped off at the house versus picking it up yourself?
This is the place to try to make big changes. Now that one of you will be home you can do some of these tasks yourself.
If you use any of those services I mentioned it is time to cut them.
Make time to run your own errands and clean your own house. I’m not saying this is easy to do with children, but if you really want to be able to afford to stay home it’s what you need to do. Check out my article on Why Moms Need to Take Better Advantage of Nap Times.
If you are now a stay-at-home parent you can cook more meals at home. Another tip here is buying food that is not pre-cut, such as vegetables. You now have the time to cut them yourself which saves you a few bucks.
Another big swing of staying home is looking at how much you would have been spending on daycare.
That money doesn’t magically appear in your bank account, but it does play a role in your decision to stay home. If your child or future child would be attending daycare know how much you would be spending.
For some families paying for daycare basically wipes out one of the two incomes. If all the money you make goes to daycare anyway it becomes an easier decision to stay home.
Let’s just run though a quick example.
Let’s say mom makes $50,000 a year and daycare costs $20,000. If your family decides it is right for you to become a stay-at-home parent you aren’t really losing $50,000 in income. You are losing $30,000 in income.
This doesn’t seem quite as scary.
If you follow some of the tips I’ve suggested can possibly be made up with lifestyle changes.
Hopefully that simple example helps put it in perspective for you.
Small Changes
Now that you are staying home put time into small things that help you afford this lifestyle.
Take the time to check out coupons, look for deals, shop second-hand, and shop smarter. Back when you worked all day you didn’t have the time to focus on these small areas.
When you needed clothes it was easier to order offline rather than take the time to sift through a consignment shop. For babies and children, look at hand-me-downs from a friend.
Learn how to shop smarter. Keep track of what grocery items are on sale on what days. Learn the flow of your stores. Considering stocking up on items when you see there is a deal.
Create a grocery budget and challenge yourself to stick to it. You will find yourself getting creative in the kitchen that way.
Also, try different meal planning strategies.
You could do something different every week or have some sort of structure, like Wednesdays are always chicken nights. You eat chicken breast, chicken tacos, etc.
Continue looking for small ways you can cut costs and continue being able to afford to stay home.
Make Money From Home
Consider making a bit of income while being a stay-at-home mom.
This could take many different forms. It could be working online, like I am doing with this blog. You could be a virtual assistant, freelance writer, or proofreader.
You could incorporate income in what you are already doing during the day.
For example, you are already watching your child so you could consider babysitting an extra child or two. If you are to the age of preschool you could get paid to help another parent with carpool.
While staying at home ideally you are cooking more meals at home. Maybe you have a friend or family member who is working full time and would be willing to pay you to make their dinner.
You prepare your dinner, but make double and they swing by and pick up their dinner on their way home from work. (That way you don’t have to load up your little one and leave the house.)
Other things that you can do are use reward programs like Fetch. You simply scan receipts. Receipts earn you points that can then be redeemed in the form of gift cards. This is not a huge moneymaker but it is ridiculously easy money to make.
Get creative and find ways you can contribute financially. You may need this money to be able to afford to stay home or see it as extra money to contribute to savings. This may help relieve pressure off your husband.
Who couldn’t use a little extra income?
Conclusion
The number one question you must ask yourself if you want to stay home is how bad do you want it?
If you want it bad enough you will take steps to prepare. You will cut costs and find savings. You will become a hustler and pick up side jobs.
Being a stay-at-home parent can be a great joy. Your little ones are only little for so long. Good luck on your journey to becoming a stay-at-home mom.
Comment below on how you afford to stay home with your children.
Check Out My Articles
7 Smart Ways to Cut Costs and Save Money when having a Baby
Why Moms Need to Take Better Advantage of Nap Times
How to Save Money by Making Your Own Baby Food
Save Money and Enjoy Life as a Stay-at-Home Mom with These 8 Tips
