This week marks 6 years that I have been a stay at home mom. It was a huge adjustment to me both personally and financially. I was not prepared at all even though I was almost 6 months pregnant with my baby. My head was stuck in the sand big time. I knew I wasn't going back to work but had my head totally in the sand on how we going to survive financially. I had anxiety over our money situation.
If you are looking to do the transition to be a one income household or stay at home mom, be smart and start preparing. 6 months in advance.
1) Do both partners want this
2) Make 2 budgets one with both Mom and Dad working and a second with Mom staying home. Use the Mom's True income to see if staying home is really an option.
3) Pay off any outstanding debt- you should be going into the one income family with no new debt. No credit card debt or car debt.
4) Save up a big emergency fund at least 9 months of expenses-12 might be better
5) Do a practice run (live on 1 income before taking the plunge)
Common mistakes
Don't depend on getting a work at home job Good paying ones are hard to find unless you are very skilled.
If you are not a frugal person and need your Dunkin Donuts or Starbucks coffee each day, you may not be able to cut back. Take a realistic at yourself-that is why the trial is so important.
Need to be out every day with the kids spending money going to the indoor playgrounds .
That the mom comes home even though she is making more income than Dad.
2 comments:
Me too!!! I quit working in January 2002, after I had my 2nd baby in July the year before. For me it was easy because I was only down to working 3 - 8 hours a week anyways cuz I had no baby sitter. Wonderful tips, good idea on the trial run. I love the statement on Starbucks, so true!
Great advice! I have been debating back and forth on whether I can actually do it
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