Since your family will be downgrading from two incomes to one, the first step is to evaluate your finances. As you write down what you're spending working outside of your home, you may find that paycheck you've been earning isn't as hefty as you thought.
Typical expenses to calculate include:
- Child care
- Gas for commutes
- Car maintenance
- Dry cleaning
- New business clothes
- Buying lunch
- Regular salon trips for hair and nail care
There are several tools available to dissect your family finances. You can use free personal finance software, walk through a guide to planning your finances on paper or use an online personal finance calculator.
Now that you know exactly how much your income brings in each month, you're ready to see if your family can live comfortably without a second paycheck. Create a budget your family will follow if you stay home. The new budget will be based on your spouse's sole income and won't include any of your business expenses you previously calculated.
Does the money look too tight for you to stay at home with the kids? Don't worry. There are more corners you can cut on your expenses without making your family feel like they're walking a financial tightrope.
If a full-time leap to stay-at-home mom is still out of the question, ask your boss about telecommuting, pick up a part-time job or find a work-at-home opportunity. Any of these options will help supplement your family's income so you can stay home more with the kids.
