Fears Faced by Stay-at-home Parents PART 1

Number One:

One of the biggest fears facing stay-at-home parents is economics. In other words, can you afford to be a stay-at-home parent?

If you are managing the household, or are a stay-at-home parent, then it must be because your situation necessitates it. Guess what, you are not alone. You may have enough money coming in to live comfortably, or you might be living from paycheck-to-paycheck. To determine how you can best afford to do the job, make a list of all of your expenses. Get out your checkbook or bank statements and go back about six months. List everything in two categories:

Must Pay
Extras

Under Must Pay, list bills such as house or apartment payment, credit cards, car payments, gas for the car, food, etc.

Under Extras, list things such as eating out, movies, house cleaning, renting DVD’s, buying books and magazines, and other expenses you can live without if you had to. Write down all income currently available to you on a monthly basis and subtract the Must Pay bills from it. Circle the difference. Now go over your Extras list and eliminate all expenses you won’t incur while working from home. Decrease or eliminate fast food spending. Also decrease car expenses and such things as clothing purchases or dry-cleaning. To the adjusted total, add in a few meals out, a few movies, and occasional special food or desserts. Subtract this estimate from the amount you previously circled. If there is enough left over so that you can put away money for emergencies and savings, then the economics will work. If not, you will have to supplement your income in some way.