Congratulations on your new bundle of joy! There’s nothing quite like bringing a child into the world. With endless hugs, smiles, and baby milestones, you’ll want to spend as much time as possible with your newborn. So, if the fear of returning to work after 12 weeks makes you anxious, you might be wondering what you can do to be able to afford being a stay-at-home mom.
Childcare can be prohibitively expensive, which makes it difficult to return to working full-time even if you had children. This is especially true if you have twins or two children under the age of two. Childcare expenses have climbed by 41% for center-based daycare, and families are spending an average of $14,117 annually.
It may be tough to give up a full-time paycheck, but there are many important considerations to take into account. This guide explains the numbers impacting your decision to be a stay at home mother and shows you how to get by on less while you are spending time with your children.
How to afford being a stay at home mom
Stay-at-home parent rates have increased in 46 states. US Census Bureau data indicate an 60% increase in one parent remaining at home to provide childcare since the 2019 census. Mississippi ranked first, with
If the thought of quitting your job to stay at home appeals to you, then setting up a budget is of high importance. Let’s examine some calculations so you can decide to remain at home as a stay-at-home mom.
Calculate your baseline spending before becoming a stay at home mom
Your first task is to gather your bank statements and look through the last few months of spending.
Even writing these expenses down is an opportunity to gain a truthful look at your finances and figure out where you may make cuts.
You can also shop around to reduce monthly payments for things like insurance, utility bills, and cell phone bills. If you can reduce these expenses by $10 per month, you can save a lot of money over time.
Calculate how to afford being a stay at home mom by NOT working
What you must do is work out how much money you’ll spend by not working. After all, working can be equally expensive.
Don’t forget to include the cost of childcare when determining whether or not you should go back to work. Find out what the prices are for at least three daycare centers or nannies in your area and average them.
Prepare for unexpected expenses
Once you’ve calculated the numbers, you should determine how much your partner’s income can cover your baseline expenses with room to spare.
We would always advise saving at least 3-6 months of living expenses in an emergency fund to pay your normal expenses like food, rent, transportation, and energy. If you already have an emergency fund prior to moving to one salary, you will have an excellent safety net if life throws you a curveball.
Consider the impact of being a stay at home mom on your health insurance
Medical insurance is a major consideration for families – we want the peace of mind that we can provide medical care to our children if they need it.
Before you drop to one salary, check to see if your spouse’s employer covers your healthcare and how much it costs for each child you add to your insurance. Your healthcare costs could easily increase with every child you add to your plan.
Calculate if you have enough money for savings
The young family’s income-to-income situation is typical, especially once you factor in new expenses to your financial plan, including diapers, baby formula, baby clothes, and countless toys and associated expenses.
If you have only a solo income, setting aside money for the future can be difficult. By committing to a savings plan, you can use part of your income to save for future expenses. Your child may seem small now, but it’s never too early to start saving for college.
You may have heard that 10% of your income should go toward savings, but 20% would provide you greater financial protection. Be sure to add this to your stay at home mom budget.
Planning ahead to afford being a stay at home mom
Ideally, you will be asking, “How can I be a home maker during my mom’s pregnancy?” so that you have plenty of time to prepare.
But occasionally plans change. That’s great. Many new mothers return to work after a short period of time and decide not to return to their job.
It’s never too late to change your mind, so work with your budget quickly to come up with a strong plan and meet your targets.
Save during your pregnancy
The time when you’re still receiving a full salary is the right time to:
Some of your cost savings will need to go toward your big-ticket items for your baby, such as a stroller, crib, baby monitor, and car seat. Saving money in advance is how to afford to be at home with your baby once he or she arrives!
Evaluate your living arrangements
Having a child is life-altering, and you may believe that your home is not the most child-friendly place. When young, single, and free, you can live in the center of downtown, surrounded by friends and the excitement of city life.
But can you afford to live in that costly city apartment as a stay-at-home mom with a newborn? You can save a great deal of money on your rent or mortgage by moving out to a smaller town. You’ll have much more living space as well. Minimizing your space is another good way to afford to be a stay-at-home mom.
Plan your mom budget
If you’re considering being a stay-at-home mom, a budget is essential to making your choice. Without a budget, it’s all too easy to fall into debt by racking up credit card bills and taking out loans.
There are many different budgeting styles available, including:
The most important thing is to select a budgeting method that works for you and your family.
Be prepared to cut back on your spending
Your life will change significantly when you have a child. However, it’s understandable that you are worried about how you can make ends meet as a stay at home mom.
Learning how to be frugal is how I became a stay-at-home mom while staying financially secure.
5 Ways to earn money as a stay at home mom
If you’re worried about your disappearing full-time salary, keep in mind that being at home doesn’t have to be your only career path. There are many other stay-at-home moms who have been able to turn a profitable side business into a lucrative full-time job.
The benefits aren’t just financial! It can also be super gratifying for mothers to expend time and effort into a passion project that goes beyond singing nursery rhymes and removing sniffles.
Looking for inspiration on how to earn money while you become a stay at home mom? How about some of these work from home ideas?
1. Blogging/affiliate marketing
Starting a blog is an excellent way to make extra money as a stay-at-home mother, with minimal startup expenses. You will only have to pay $50-100 for a domain and website host, which will run you around $100 per year.
To get started, select a topic to write about – perhaps related to your former work, a hobby, or stay-at-home mother tips. The key to success is to create regular content and engage with your readers by responding to comments.
Are you wondering how this helps make any money? Bloggers typically receive referral commissions after recommending a product on their blog. This enables you to earn money by linking to special deals.
2. Setting up a daycare
If you’re already at home helping with your child, why not open your doors to daycare for other families too? can act as a stay at home mom by serving as a caregiver. Have you ever thought about how to afford being a stay at home mother? By providing daycare, you can be incredibly rewarding.
Not only will you get financial compensation, but you can also enjoy spending time with your child while helping other children.
But running a day center is more complex that being a childminder or a nanny. Before you open the center, you’ll need a license, CPR certification, a clean driving record, and other documentation.
Insurance is a must, and you can choose to rent a daycare room if your home is not appropriate. You may have to pay between $10,000 and $25,000 to get your business up and running, but there are numerous grants available for those who work as professional caregivers.
3. Virtual assistance
Being a virtual assistant could be a lucrative job, and it fits well with family life. If you have extensive experience as a secretary or any other part of running a business, you can provide a virtual assistant service to business owners and help them manage their emails, calendars, social media, bookkeeping, and more.
Startup expenses are minimal, which is vital if you are concerned about having enough money to start a business. However, you must market your goods or services before you can attract clients.
Some assistants will create their own websites and use pay-per-click (PPC) or social media advertisements to drive traffic to it. Others have joined a virtual assistant agency to get work.
4. Freelancing
You can get started as a freelance translator simply by possessing a pc and an internet connection. As your skills grow, you can make more money. As a freelance writer, you can offer abilities such as content creation, graphic design, or web design.
Freelance workers often find work on sites like Fiverr or Upwork, but the pay is modest. You may start here and then drive leads to your personal portfolio website.
5. Transcription services
You can turn audio files into text by being a fast typist with a good ear for listening. Lawyers need a written record of courtroom proceedings, and doctors may need recordings of a medical conference transcribed.
Transcriptionists working independently are encouraged to sign up for an online transcription service such as Scribie. To get started, you may have to take a short transcription test.
Concerned you won’t be able to take on more work like this? The beauty of these tasks is that they can all be completed remotely at a time and pace of your choosing.
When you have your baby in a healthy sleeping schedule, you can work for two hours during a lunchtime nap, plus an hour in the evening.
Final thoughts on how to afford being a stay at home mom
You’ve now reached the end of our guide on how you can help affording being a stay-at-home mother, so it’s time for you to make some decisions about your work and family. But nothing’s forever.
Regardless of whether you go back to work or not, being a stay-at-home mom is one possible option. Similarly, if staying-home-mom life is unappealing to you, there are other options. You could consider your spouse to be the stay at home parent while you are working.
There are no regulations, and everyone’s situation is distinct. Take your time in constructing the best plan for yourself and your family!
