Thinking about giving up a job so one spouse can stay at home with the kids?
Worried about what the lack of imcome is going to do to your bottom line?
There are lots of things to take into consideration when giving up a job- the loss of income probably being the utmost concern. If you take a bit of time to actually break down the finacial gains of working, you can see what you might save by not working, and what the actual loss of income would be.
Lets look at what some costs of working might be for you:
Professional wardrobe, commuting or car expenses, day care and after school care, lunches out will be the norm. Expected contributions to office parties, birthday presents, and sponsored events might come as a suprise but are standard in many offices.
You may be able to cut some of your lunches out, but if you work with others who go out, you probably will as well, as least once or twice per week.
Couples who that work also tend to spend more on entertainment, fast food, take home food, and restaurants, so you’ll have to figure in those expenses, and consider: Do you go out more because you are just too tired, or frazzled to stay home and cook?
Taxes and social security and other deductions might take 30% or so of your paycheck as well.
How much cash do you have leftover? Is it worth it to you?
Perhaps it is.
Health Insurance, Profit sharing or retirement plans, paid vacations, love of a fulfilling job are all great reasons to keep working. As my child gets older I’m sure I’ll have a job again, but for now, the cost (emotionally to our family) outweighs the benefits.
MSN Money has a great second income calculator to help you figure out the actual financial benefit to having a second income.
I’d love to hear your thoughts. Are you working or not? Share your reasons in the comment box below!