thyme4change
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Post by thyme4change on May 17, 2012 12:15:56 GMT -5
If I wanted to become a SAHM at this point, we would cut our income by 50%. The good news is that we have a low mortgage, even for our single income level. The bad news is, we have gotten really accustomed to having all the money.
What are the steps I should go through to figure out how / if we can live on the lower level of income?
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Deleted
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Post by Deleted on May 17, 2012 12:16:56 GMT -5
start living on the lower income now.
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Mardi Gras Audrey
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Post by Mardi Gras Audrey on May 17, 2012 12:18:23 GMT -5
give up the Bentley and the butler...
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thyme4change
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Post by thyme4change on May 17, 2012 12:19:53 GMT -5
Crap...I didn't even think of that.
I need a more streamlined timeline. I want to become a SAHM now, not in 1 year. My kids need me. I can't wait to prove this out. I need to put pen to paper.
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swamp
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Post by swamp on May 17, 2012 12:20:56 GMT -5
Add up the necessities and see if they exceed your husband's income.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on May 17, 2012 12:21:12 GMT -5
Redo your budget based only on the one income and see if it's a red or black number at the bottom! ;D How do you budget?
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Deleted
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Post by Deleted on May 17, 2012 12:25:23 GMT -5
Crap...I didn't even think of that. I need a more streamlined timeline. I want to become a SAHM now, not in 1 year. My kids need me. I can't wait to prove this out. I need to put pen to paper. So just do it. With all of that extra time you will have you will be able to figure out lots of ways to save money.
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thyme4change
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Post by thyme4change on May 17, 2012 12:26:06 GMT -5
That's the problem. We have gotten so used to having excess income, that we basically don't have a budget. We pay our bills, put money into savings, and then we spend the rest.
I think I will start by getting all of our spending out of the interweb for the last 6 or 12 months and see what we are actually spending. I guess I should figure out how much we would reduce our taxes - that would be a big one! Unfortunately, I don't see a lot of expenses going away - not a lot of childcare expenses, not a lot of commuting expenses, I rarely eat lunch out, we rarely eat dinner out. I will probably spend less in shoes, but not enough to replace my income.
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whoisjohngalt
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Post by whoisjohngalt on May 17, 2012 12:29:11 GMT -5
Can your DH increase his income?
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Miss Tequila
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Post by Miss Tequila on May 17, 2012 12:31:44 GMT -5
thyme, can you tell us what is going on that you feel the kids need you now? Aren't they in school all day long? Is it the travelling that is doing you in (it sounds like you are spending quite a bit of time on the road lately)?
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Deleted
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Post by Deleted on May 17, 2012 12:48:33 GMT -5
You seem way too smart to be asking this basic of a question.
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973beachbum
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Post by 973beachbum on May 17, 2012 12:49:03 GMT -5
thyme, can you tell us what is going on that you feel the kids need you now? Aren't they in school all day long? Is it the travelling that is doing you in (it sounds like you are spending quite a bit of time on the road lately)? My first thought was it was a YM joke. Sorry if it's not. You will need to track down everything you spend and what you have already saved to see if it is feasable. The good news is if you do quit you won't need anymore expensive work clothes and your car maint/gas bills will go down. ;D
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skubikky
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Post by skubikky on May 17, 2012 13:00:40 GMT -5
Then if you're going to do it now...do it and live with the fallout. Geesh... It's simple addition and subtraction. Your expenses and savings can't exceed what your husband can bring home. End of story. Sounds like you're having an emotional reaction and making an emotional decision without thinking it through.
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raeoflyte
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Post by raeoflyte on May 17, 2012 13:05:53 GMT -5
I'd start with statements for the last 3 months, and then work backwards to get a fairly accurate yearly budget. The trouble (for me at least) are all of those pesky trips to Target. Was that groceries, or necessities like cleaning supplies, or mindless spending that we can do without?
Can you sell the car you bought last year (I think it was financed, so that could make a good dent in monthly outlay).
But...from what you've posted about your income and lifestyle, I think it will really just be cutting out the extras. How on board are your kids with change? Not that I wouldn't do this because they might whine, but it is something to have a game plan about-- how to address it upfront, and then nip it in the bud when they want something that is no longer in the budget.
Then look at how long you think you'll be out of the work force, how does that impact your retirement savings, etc. How will you plan to re-enter the work force, etc.
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justme
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Post by justme on May 17, 2012 13:06:49 GMT -5
If you sign up for Mint it will automatically throw everything into certain categories and give you a rough idea of what you're spending. Though, it won't work automatically as well if you tend to shop at Target and buy grocery, clothes, and house stuff from their.
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Peace77
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Post by Peace77 on May 17, 2012 13:10:20 GMT -5
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thyme4change
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Post by thyme4change on May 17, 2012 13:10:22 GMT -5
Of course it is an emotional reaction. And I'm trying to think it through. That is the point of this thread...
"Help me think this through!"
Not really, I only drive about 10-15 miles per week for work. The difference will be about $20/month - and that is only if I don't find other places to drive during the day.
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Peace Of Mind
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Post by Peace Of Mind on May 17, 2012 13:10:22 GMT -5
Do you have vacation time or can you take a leave of absence for a trial run or to practice? If you have vacation time just live off your DH's income during that time and stash your income in savings so you don't use it for other expenditures.
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swasat
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Post by swasat on May 17, 2012 13:11:04 GMT -5
Whats up Thyme? I considered you my long lost sister in being a working mom with 2 kids. Is everything ok? I hope you are bored and just messing with us.........
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thyme4change
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Post by thyme4change on May 17, 2012 13:12:31 GMT -5
I'm not having any luck finding any part-time options for my skill set. I might have an opportunity to work contract at an hourly rate. But, it would be unpredictable. I don't think I could charge my currently hourly rate, and I wouldn't be able to get nearly the hours. They might also come and go as projects pop up.
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happyhoix
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Post by happyhoix on May 17, 2012 13:13:30 GMT -5
I'm also kind of wondering why the rush? If you want to make sure you can pull it off financially, it would be better to spend the next six months putting your entire check into savings. Factor in any reduction in costs you expect from not working (less wardrobe expenses, less travel expenses, being able to spend more time cooking homemade/couponing, etc) and see what the numbers are.
In this economy, with jobs hard to find, I would be really reluctant to give up a job until I was 100% sure I could swing it.
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Peace Of Mind
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Post by Peace Of Mind on May 17, 2012 13:17:30 GMT -5
I thought Thyme has mentioned she was thinking of being a SAHM before. Or was that somebody else? Her kids aren't getting any younger so maybe that's why she feels like she needs to do it now.
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Deleted
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Post by Deleted on May 17, 2012 13:17:54 GMT -5
Do not think of being a SAHM as an "all or nothing" approach. It isn't like you have to be home 24/7 and have it be all or nothing. If that is the direction you want to go, then start taking steps in that direction. If the goal is to have more time at home, what are some possible ways you can do that? Can you work part time instead of full time? Could you work on the weekends at night or some different shifts. Personally, i would recommend that most women consider being Part time rather than all or nothing. If you stay in the work force, you have more options. You keep up, you are current and you have a fall back income. Could your spouse look at different shifts and so forth? And, you can live on less money if you really want too. Lots of people say they would but really don't. If being a SAHM is a goal, how much of a priority is to you? Would you be willing to downsize your home, sell a car, live in an apt, etc? If it is something you really desire, then you can find a way.
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Miss Tequila
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Post by Miss Tequila on May 17, 2012 13:18:25 GMT -5
"Of course it is an emotional reaction. And I'm trying to think it through. That is the point of this thread..."
No, you are asking us if you can afford to quit....without knowing why you want to quit, we can't really help you think it through. I started a new job last october and it was much more stressfull than I anticipated (and that says a lot considering I spent 17 years in public accounting!)...I did what you are doing, ran the numbers and decided that I could live off my rental income (husband pays the bulk of expenses). part of it was because I was working too late and not seeing my kids enough and that was killing me.
Once i realized I COULD walk, I had a heart-to-heart with my CFO....I was point blank when I said, "this is how much I have, this is how many hours a week it is taking me...are these teh kind of hours you expect from me becuase if so, you are going to need to find someone else". My position was a new position and he admitted that he knew it developed into much more than he originally expected...he looked at my work load and reassigned stuff that had nothing to do wtih the company I'm in charge of.
My stress level dropped significantly (except month end) and I no longer feel like I am missing out on my children.
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thyme4change
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Post by thyme4change on May 17, 2012 14:01:14 GMT -5
I went down that route and came up empty. I don't see different shifts or weekend work in our current careers. Plus - I'm not sure that would really help the issues with have with our family - which is not enough family time.
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thyme4change
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Post by thyme4change on May 17, 2012 14:02:56 GMT -5
No, I'm asking what steps I need to do to figure it out.
from the OP:
What are the steps I should go through to figure out how / if we can live on the lower level of income?
I'm looking for a process, not an answer.
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Miss Tequila
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Post by Miss Tequila on May 17, 2012 14:04:14 GMT -5
Oh, I guess I assumed since you were an accountant that you weren't really asking us how to figure out a budget.....
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thyme4change
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Post by thyme4change on May 17, 2012 14:05:17 GMT -5
I'm actually not an accoutant.
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Sum Dum Gai
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Post by Sum Dum Gai on May 17, 2012 14:07:19 GMT -5
What are the steps I should go through to figure out how / if we can live on the lower level of income? 1) Add up all your fixed monthly expenses that you have little or not control over (mortgages, utilities, insurance, etc.) 2) Add in necessary expenses that you have some control over, and you can be conservative here (groceries, gas, etc.). Use bare bones numbers, but realize that if you cut the grocery spending number now you have to actually cut the grocery spending at the store. Say goodbye to steaks and whatnot for a while. 3) Look at your husband's net income, and if it isn't bigger than the two previous numbers combined, you're fucked. If it is bigger, this might be doable. 4) Look at all the things you guys normally spend money on that you haven't included yet. Are you willing to cut them? If not, is there room left to add them back in. That's pretty much it, in a nutshell.
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Deleted
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Post by Deleted on May 17, 2012 14:08:08 GMT -5
It is a process. We have always tried to live well below our means because having money saved always meant options for us. And, then i worked toward that goal, went from fast track full time to part time and have adjusted my career. We downsized our home. If you want concrete answers post a budget, expenses, etc. Or, we give you general points that we have done.
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