|
| To stay or not to stay: Can you afford it? One of the biggest decisions facing new mothers in the aftermath of having a new baby is undoubtedly whether to stay at home to be the prime carer or return to work in the role of a breadwinner. It certainly isn’t an easy choice to make, and many emotional factors will need to be taken into consideration. Nevertheless, in these times of economic downturn particularly, the truth is that ultimately this will come down to whether you are financially capable of doing it. Whilst there are plenty of mothers who take great pride in their careers and wish to return to work, they also recognise the benefits that stable and consistent contact can have for their baby’s development. Though statistically around 50% of new mothers decide to remain as their baby’s principle carer, funding this choice isn’t solely a matter of eliminating one half of the household income. There are many financial factors to take into consideration, and as such it is worth spending some time figuring out all the implications and the ways in which you can realise this as a feasible option. Understanding whether you can make this work for both you and your family begins with having comprehensive idea of the household budget. Recording your expenses will give you a clear impression not only of your monthly outgoings, but also of the areas of spending where you could potentially cut back on. Using bank and credit card statements, as well as shopping receipts and household bills should begin to give you an accurate picture of your family spending patterns. From here, you can begin to see what kind of impact the removal of your salary will have, as well as any major money-drainers that could be rethought. The biggest expenses that are likely to emerge from your budget plan will inevitably be the weekly food shop bill, the house and car insurance, and, of course, the mortgage. With a little re-jigging all of these could rather swiftly be reduced, making the stay-at-home dream seem that little bit closer. Starting with the groceries, a family shop can easily be reduced by simply putting a little consideration into your weekly menu planning and switching to supermarket own brands. The mortgage and insurance costs may seem a little more daunting, but with a little careful research of alternative options it is highly possible that you could lower both by up to half of what you are currently paying out. Similarly, if you have taken out a tracker mortgage it may be worth considering reverting to a fixed-rate over the coming years for greater peace of mind. Have a look at providers such as Alliance & Leicester to get a realistic picture of the kind of attractive fixed-rate mortgages available. Whilst we inevitably focus on the loss of money that giving up a second income will bring, it’s easy to overlook the amount of money potentially saved by having a parent stay at home. There are a multitude of hidden costs to working such as transport, lunches, and not least childcare, so it’s well worth taking into account those things you won’t be spending money on when remaining in the home. Of course, it’s always impossible to put a price tag either the decision to give up work or the experience of bringing up your child. As such, it will require a little careful consideration and prudent planning to reach the choice that feels right for you. |
