Scaling Back: Your Decision to Become a Stay-at-Home Mom

You’d like to be a stay-at-home mom, quit your job, and spend more time with the kids. But perhaps you’ve become dependent on your income and the entire family enjoys some of the perks that go along with it. Can you scale back on spending enough to afford to be a stay-at-home mom?

Calculate the Cost of Staying Home

To know exactly what you face, do a calculation of your future financial situation, without your income. Add up what your total household income will be, without your job income.

Now start subtracting your expenses and monthly bills, leaving out any expenses that you currently have that are associated with your working (child care, parking, uniforms or business clothing, commuting costs, lunches out, and whatever else you spend).

Take this total and start making adjustments for estimated changes in taxes, insurance and gasoline. Your income loss may put you in a lower tax bracket, your car insurance may go down if you’re no longer commuting, and you’re likely to use less gasoline.

After doing the math, you might be left with a negative number, meaning there’s a gap between your household income and your expenses. This calls for some cutbacks, a simpler and more economical lifestyle.

What You Can Do To Afford Being a Stay-at-Home Mom

You may be surprised at how quickly your savings will add up just by making some simple changes in the way you live. It's not difficult and can even be rewarding.

• Change the way you grocery shop

Grocery shopping on a budget is easier once you get the hang of it. Do weekly grocery shopping and try not to make little trips for one or two items in between. Check fliers and newspaper inserts for sales and plan your grocery shopping so that you’re getting the best deal for every item you buy. Go to more than one store if you must. Use a list and stick to it. Start clipping coupons and use them. Eliminate all impulse buying. Eat before you grocery shop so you don’t end up with a bunch of stuff that you were craving while shopping. Plan your menus for whatever items are on sale that week.

• Change your shopping for clothing and other items

Buy seasonal clothes on sale at the end of the season for the next year. Shop at resale shops and vow to only shop in mall shops and department stores on big sale days. Don’t be penny wise and pound foolish, however. When buying appliances and other long-term items, shop wisely, and get the best value for the dollar.

• Do it yourself

What are you paying others to do that you can do yourself now that you won’t be working? If you pay someone to clean your house, mow your grass, wash your car, color your hair and iron shirts, you can start doing all these things yourself. Start using self-dry cleaning sheets for the dryer instead of paying for commercial dry cleaning.

• Cut out costly conveniences

A cup of Starbucks coffee every morning can add up to about $100 per month. Start making your own coffee at home and cut out some of these perks that may seem minor – “but it’s only $4!” – but which add up fast. Dinner out for a family can add up just as quickly, if done regularly. Make your own gourmet dinners at home instead. Get creative and challenge yourself to cut expenses.

• Substitute vacations

Have a down-to-earth family vacation at home this year, instead of spending thousands of dollars on flights, hotels, and travel packages. Or substitute a road trip to visit friends or family in another state.

Working From Home

If you still are not able to afford to leave your job but you want to be a stay-at-home mom, consider opportunities, part-time work or job-sharing. Your current employer may be amenable to adjustments in your hours and work schedule, and you may find it easier to live with a cut in pay instead of no income.

Consider the Non-Monetary Rewards

You can’t put a price tag on it, but give some weight to the benefits stay-at-home parenting will bring to you and your children. The first time your child gets sick and you don’t have to scramble to get time off work, you’ll find the sacrifices worth the rewards.

And by scaling back and living a simpler, more economical lifestyle, you’re teaching your children the value of family life.