Elena Fawkner
For parents of pre-school children who think you can’t quit
your jobs and stay at home with the kids because you think you
"need" a second income - don’t be so sure. That
9 to 5 grind may be costing you more than it’s paying you.
Let's say you're a parent of two pre-school children and you're
earning $25,000 a year ($500 a week) in your full-time job. Let's
see where the money goes.
First of all, you don't have family nearby to care for your children
while you're working so you put them in daycare. That takes care
of $150 a week, leaving $350.
You need a car to get to work and your kids to daycare. Let's
say you have only a modest car payment of $50 a week. Your other
expenses are fuel, insurance and general maintenance. Fuel is
$25 a week, insurance $10. Allow another $10 a week for new tires,
servicing and repairs. So $95 a week goes towards your car. That
leaves $255 out of your weekly paycheck.
You work in a professional office so you must dress accordingly
and be well groomed. Allow $10 a week for clothes and accessories,
another $5 if you're female for cosmetics and hair care. There's
another $15 a week leaving you $240 out of your weekly paycheck.
You don't have time to make your lunch so you buy it every day.
At $5 a day that's $25 a week. You're down to $215 a week now.
You don't always have the time or energy to cook a family dinner
from scratch each night and so once a week you pick up take-out
on the way home ($20 for four people) and spend more on prepackaged
foods at the grocery store each week. Let’s put this at another
$20 a week. This additional $40 a week for convenience foods leaves
you $175 out of your weekly paycheck.
Still worth it, you say? Oops … forgot about taxes, social
security and health insurance! Better deduct another $100 a week
and now you’re at $75.
Is $75 worth working a 40-hour week for? Is your time really
worth as little as $1.80 an hour? And that’s not even taking
into account what your income does to your partner’s tax
bracket! Without being able to claim you as a dependant it may
put it over the top and the increased tax paid on your family’s
primary source of income could well mean that the net contribution
of that second income is a deficit! If that’s the case, it’s
actually COSTING you to work outside the home.
If you find yourself in this situation, there is an answer a
home-based business. You can forget about daycare costs, you’re
there! How difficult do you think it would be to make
$75 a week working from home? Easy! In fact, it would not be difficult
to generate the same level of income from your home business as
you were generating from your full-time job.
But because you don’t need to incur the unnecessary expenses
such as daycare, vehicle expenses, clothing and food, you can
be MUCH better off. Not only that, you can now claim home office
tax deductions! And all of that’s just focusing on economics.
Factor in lifestyle and family issues and a home-based business
can literally take your life back and give you back to your family.
© 2001 Elena Fawkner
Elena Fawkner is editor of A Home-Based Business Online - Practical
home business ideas for the work-from-home entrepreneur. /http://www.ahbbo.com/
