Stay Home Moms Earn A Living!
Recent Statistics show a second income might be detrimental to
the financial status of many young couples with children who
need daycare. Studies discovered families with one income were
already ahead of the financial game, if the second income is a
modest one.
Why? Simply because when both parents work outside the home full
time, additional expenses will expand rapidly. In fact, their
financial stability will diminish instantaneously, leading to
financial ruin, even bankruptcy. This article will cover what
one young mother decided to do to improve her income.
I will use my good friend Sandy as an excellent example. Sandy
is a married woman with a three year old son. She recently
returned to work after being a stay-at-home-mom.
Please Note: All the expenditures are on the conservative side.
Sandy is frugal and watches every penny she spends. Please adapt
the examples to your own situation to weigh your choices.
Sandy earns a respectable $24,000 per year, which she considered
a good second income for her family. Wrong! Sandy discovered
other expenses were consuming her new income. To begin, she had
to deduct about 40 percent for fed, state, local, social
security taxes, pension plan. She is down to about $14,400
extra. Yikes!
Daycare dwindles a large portion of her earnings. In many large
urban cities daycare cost around $6,000 for one child. Sandy
considered herself lucky to find a center charging about $4,800
per year. That reduces her extra income to $9,600.
Sandy works in a high profile business office, her appearance is
very important. Sandy will need a new wardrobe. Of course, the
new ensemble will need dry-cleaning. Yearly fee, conservatively
$1,000. That leaves Sandy with $8,600.
Of course she will want to have her hair and nails done to
maintain her professional appearance. Costing a grand total of
$2,000 per year. Reducing her profit margin to 6,600.
Oh, and don't forget the little expenses that add up like,
lunches, snacks, office parties, magazines to read on the train,
and other expenditures that accumulate with working outside the
home. This can add up to an additional $3,000 easily. Sandy is
now at a $3,300 profit margin.
All right, now there's transportation. Sandy commutes by rail 5
times per week. This totals close to $1200 dollars per year. Our
profit margin is now $2,200!
Think about it! That breaks down to approximately an extra $183
per month after expenses. Sandy soon realized she could start an
in home business that would have a higher profit margin than her
once highly coveted 9 to 5 second income.
Sandy decided to start a day care center. Sandy cares for two
other children along with her son. Her expenses are less, since
she doesn't have to commute. She doesnt have to spend money on
a business wardrobe or the latest hairstyle. Plus, she gets to
spend all the time in the world with her son during the most
important formative stages of his life!
Think about it! Are you in similar situation like Sandy. Maybe,
that secondary income working outside the home is not the answer
to your financial woes, but starting an in home business is!