stay at home parents

Running the Numbers: Living on One Salary

Kelly Kehoe — Thu, 05 Jul 2012 10:24:08 +0000

Whether you’re a single or stay-at-home parent or have a disabled or unemployed spouse, there’s something you likely have in common — your family is living on a single income. In a day and age where statistics show the number of working couples on the rise (not to mention inflation in terms of the cost of living), the notion of forgoing one spouse’s income sounds preposterous. It’s not impossible, however, as many middle class couples and families are managing just fine without the extra income. All it takes is some careful planning. (See also: Is Living on One Income a Status Symbol?)

Patience Required

If you're fortunate enough for this lifestyle to be a choice for your family (as opposed to a sudden layoff forcing a partner to stay home and look for another job), then you have more flexibility in deciding how to to go about living on a single salary. For budget issues, you can cut back in some areas of your budget and continue to splurge in others. However, even with this breathing space, a certain level of patience is required. Perhaps you're in a situation where one spouse wants to leave their job to fulfill their dream of becoming an author or go back to university to get their master's degree. In these cases, it's possible that the spouse working for a paycheck may feel resentment or envy for having to take on the role of sole breadwinner while the other pursues a different calling than paid work. This must be avoided at all costs, so before you make the leap and leave your job, make sure both spouses are content with the idea of living on a single salary.

Downsizing

If you are caught unprepared (in instances of disability or lay-offs) or your personal situation calls for it, you may need to look into downsizing your lifestyle. This can involve: moving into a smaller house or apartment (or to a more affordable neighborhood in your area), selling the nonworking spouse’s car, cutting luxuries such as movie rentals or pricey wine from your budget, and accounting for lowered discretionary expenses from month to month.

Balancing Act

After constructing a new budget, now look to the workload shared between partners. Even if one spouse or parent isn’t working for a paycheck, that doesn’t necessarily mean they aren't working at all. To make this a fair and successful venture, the stay-at-home partner will likely be responsible for housework, yard work, taking care of the kids, and anything else to support the household while the other partner is away at the office.

Side Jobs

If the nonworking partner has the entrepreneurial spirit or your family would like a little extra money so cutbacks in discretionary expenses won’t seem so severe, consider starting a small, home-based business or taking on side jobs to put your time to profitable use. This can involve: childcare, yard work, repairs, selling products, writing, web design, and more. Your options are limited to your imagination (a few stay-at-home parents have come up with great ideas that went on to earn them more than a salary at a regular job would have).

What about your family? Do you live on a single salary? If so, how do you manage? Tell us in the comments below!

This article is from Kelly Kehoe of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

12 Side Jobs for Stay-at-Home Moms and Dads

Camilla Cheung — Tue, 08 Nov 2011 10:00:35 +0000

There are many reasons a person might choose to be a stay-at-home mom or dad. The cost of childcare might be prohibitive, or you might feel that having a parent at home is essential for your child's development. However, staying at home with your child can be a sacrifice in terms of the income you could be bringing in if you were out in the workplace. (See also: 9 Ways to Earn Extra Cash When Money Is Tight)

If you're a stay-at-home parent, you might be looking for ways to create additional income to help with mortgage payments or bills around the house, but feel limited in what jobs you can take because of your child's needs. To help you generate extra income while taking care of your little ones, here's a list of flexible side jobs that are great for stay-at-home moms and dads.

1. Sell Crafts Online

If you enjoy knitting, sewing, crocheting, woodworking, jewelry-making, or another creative craft, you may want to consider selling your creations online on Etsy. All you need are some start-up materials, your creative skills, and the ability to pack and mail orders. You'll probably be paid via Paypal, and you can set up your Paypal shipping options so that you can print shipping labels from your home computer. There is a huge market for hand-crafted items today, and if you market yourself well, you can create quite a successful small business.

2. Host an Exchange Student

If you live near a university or college campus, your home may be prime real estate for hosting exchange students. Many university students come to the States for intensive English-training courses and are looking for quality "homestays" where they live with a local family for a few months in order to practice their English and learn about American culture. You will need to provide a private room with Internet access, as well as a few meals a day. If you live near a bus or subway stop and have a spare room, this is a great way to use your space to maximize your income. Contact your local university's exchange program for details.

3. Start a Freelance Business

Perhaps you have amazing illustration or photography skills, make beautiful cards, are an expert at cake decorating, or feel that you can write better articles than most of the crap that's on the Internet. Whatever your skill is, make it work for you by marketing yourself as a freelancer. Start a website or a blog where potential clients can find you, and start doing small free (or cheap) jobs for friends to build up your portfolio and a word-of-mouth network.

4. Monetize Your Blog

Many of my friends who are stay-at-home moms have blogs where they document their cooking mishaps, crafting adventures, and gorgeous pictures of their babies. You can create an easy additional stream of income by putting Google ads onto your website or blog, and then marketing your blog on websites such as Foodgawker, Craftgawker, Pinterest, and other websites.

5. Tutoring or Teaching an Instrument

Tutoring is a great way to use your skills and earn extra income while staying at home with the kids. Often, you can have students come to your house, so you don't even have to drive or be away from home. Search listings on Craigslist or at local schools and colleges, and you'll quickly come up with many opportunities. Along the same lines, teaching piano or another instrument from your home can be an excellent way to earn very good money.

6. Direct Sales

Bet you never thought you'd be one of those Avon ladies, did you? If you're outgoing and have contact with a large number of friends and acquaintances, or if you have a business (such as teaching piano) out of your home, doing direct sales might be a good option for you. It requires party planning and a certain amount of prep work, but if you're a good salesperson you can earn income this way. Jewelry, cosmetics, and cookware are all options for direct sales. However, be careful when researching this option; go with a trusted, reputable company that has good reviews.

7. Babysitting and Daycare Jobs

You've definitely got the childcare experience, so why not make it work for you? Babysit a neighbor's kids while taking care of your own. In general, you'll need a driver's license and a clear driving record in order to pick kids up after school, drive them to sports engagements, and take them home. Making a healthy meal and minor housekeeping duties may also be part of the package.

8. Substitute Teaching

Depending on the state you live in, you may be qualified to be a substitute teacher if you have a bachelor's degree. Although this will require you to be away from your family and to find childcare for your work days, you can work as little as a few days a month but take home a substantial paycheck.

9. Become Certified as a Notary Signing Agent

Becoming certified as a notary can be a lucrative gig. You'll need to take a training course to teach you how to notarize official documents such as loan and mortgage documents. While this job is flexible and allows you to spend more time with your family, you'll need to get childcare for times when you are meeting with clients, and it does require a significant investment of time to be really profitable.

10. Home Beauty Services

Get certified as an esthetician or massage therapist and offer manicures, massages, facials, and other beauty treatments at home. I have personally gone to several estheticians who work from home, and I have enjoyed the personalized service and better prices. You'll need to have a room in your home dedicated to your beauty services, specialized equipment (such as a massage table, steam machine, etc.), and beauty products, so it will require some capital to start up. However, you can schedule your services to suit your schedule and be at home the entire time. Please note that you'll have to find out what restrictions, requirements, and other laws there are for home-based beauty services in your local area.

11. Resell Vintage Items

There's a huge market for vintage items on the Internet. By browsing thrift stores, yard sales, estate sales, and consignment stores, you can find plenty of treasures that people are willing to pay for. List them online on eBay or Etsy, and watch your bank account grow.

12. Office Support

Many companies are looking for customer service agents who can answer the phone at home and provide support to clients, or someone to provide administrative support with paperwork, data processing, or other tasks. Check out job boards like the one at WAHM.com, which lists flexible jobs specifically geared to work-at-home moms.

When looking for a side job, be sure to be wary of work-at-home scams. Never pay upfront for promised future employment, and beware of offers that sound too good to be true. Caution aside, by being creative you can increase your streams of income to generate a nice tidy sum that will help out with the finances while allowing you to spend time with the kids.

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This article is from Camilla Cheung of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Financial Strategies for Stay at Home Parents

Ashley Jacobs — Wed, 04 May 2011 09:48:57 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on financial strategies for new stay at home parents, how to settle down in a new city, and life insurance policies you don't need.