Page 43 - Book3E

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insurance, regular maintenance and unexpected repairs); child- care; clothing (and dry cleaning); supplies; and meals (including lunch out and takeout dinners). These expenses devour a signifi- cant amount of your after-tax, take-home pay, resulting in the ridiculous situation of working until you’re dog tired to afford items you wouldn’t even need if you could stay home.
And by now you’ve read more than once how important it is to figure out where the money
goes by recording all of your spending for a month or two to get a clearer picture of your spending habits. It may surprise you to discover how much you sink into company vending machines and buying fast food on the way home because you’re too tired to cook. As a stay-at-home parent, you won’t be tempted by vending machines as much and will have the time to cook more nutritious meals. So add up all of your work-related expenses to see if your 8 to 5 routine day in and day out is truly worthwhile.
2. Establish your income needs. When it comes right down to it, how much money does it really take for your family to get by from month to month? One way to find out is by making a worksheet with three columns: one for fixed expenses like mortgage, car, and insurance payments, one for variable expenses such as groceries and utilities, and one for discretionary expenses like movies, dining out, and clothing. This exercise will help you determine your basic necessities and how much money your family needs to live. Use this worksheet to create a written budget using the income of the parent who will work.
Downsizing from Two Incomes to One