For many families, deciding to have one parent stay home with the new baby is a difficult choice, and it’s even harder to carry out. It means making tough sacrifices. It’s interesting how many families say “we can’t,” when in reality what they are really saying is, “we won’t.” Are you willing to give up a few of life’s conveniences to stay home with your child?
Sometimes, the first step toward being able to afford staying home with your kids is honestly dividing your expenses into two categories: needs and wants. Sometimes, the only way to live on one income is to make a few drastic changes.
Some things you might have to give up: the new car (trade it in for a used one with a smaller or non-existent payment), eating out in restaurants, premium cable or satellite packages, expensive cellular plans, regular shopping trips for items such as clothes or electronics, an inflated entertainment budget, an annual vacation, subscription based games, purified drinking water delivery service, or your gym membership. You might even consider downgrading your living arrangements if you have too much home for one paycheck.
Some things you can file down rather than eliminate. By shopping sales with coupons, it’s easy to cut your grocery bill in half. Practice saving energy in your home by turning off lights and other items when not in use. Watching less TV can also save you a lot of energy. Saving energy means a lower electric bill. Call your cable or satellite provider and ask about budget plans. Sometimes they will offer cheaper, smaller packages to certain customers who specifically ask and these packages are never advertised. You can also sometimes work with your credit card companies to get lower interest rates or minimum payments if you have been diligent in paying your bill each month. Talk with your insurance agent to make sure you are not buying more insurance than you need. Talk to a broker about the possibility of refinancing your mortgage to get a lower interest rate, which could save you quite a bit on your monthly payment. Look over your property tax bill to make sure the assessment is fair and file an appeal if you feel you’re paying too much.
The best time to make these changes is during your pregnancy, before you actually lose one source of income. That way you have several months of practice to work out the bumps in your plan. You also have the opportunity to save quite a bit of money or pay off certain balances to eliminate a few recurring payments from your budget.
Speaking from personal experience, I can honestly say that while my family is living on a smaller budget than we ever have, we are so happy with our decision to do so. It can be hard to adjust at first, but after a while you realize you don’t miss the things you gave up. It is so rewarding to be able to live out our dream!