The Cost of the Second Income
Many people feel tied or even trapped in the two income lifestyle. They desire to have one of the spouses stay home with the children but they just don’t understand how they would get along on less money.
Some people might be surprised to find there’s a hidden cost of working that eats into the household’s second income. I found this calculator online that calculates the cost of working to help families determine if one of the spouses can stay home.
Here was my scenario. I found a full-time job in my area last year that I could qualify for as an environmental health specialist based on my degree and experience. The pay was $27,295 annually. That breaks down to about $1,930/month after taxes (the additional income would bump us up a tax bracket).
Here would be my additional monthly expenses from working and the leftover income.
Childcare: $900 (for two children)
Transportation: $300 (we would have to buy another car and pay for additional insurance and gas)
Lunch expenses: $10
Clothing/dry cleaning expenses: $15
Dining out/convenience food expenses: $100
Tithe/Charity: $270
Total income after expenses: $335
Now these conservative figures still reflect my frugal nature. For those who would buy a nicer car, eat out for lunch more than twice a month or dry clean every outfit, the expenses would be more.
I couldn’t justify going to work and leaving my kids for only $335/month. Especially since I have found that staying home and teaching piano lessons a few times a week nets me $200-$300/month, without leaving my kids in daycare. But even if I didn’t have my piano lesson income, staying home allows me to stretch my husband’s paycheck. Here are some of the ways staying home has benefited us financially.
1. I cook healthy meals from scratch instead of convenience foods or dining out.
2. I have the time to clean and maintain our living space.
3. We can share one car and save on gas and insurance.
4. I have the time to shop for bargains and do research on large purchases.
5. My husband is less stressed and better able to focus on his job and our main salary.
Now I will say that the decision to live on one income is a very personal choice but for those who feel trapped because of money I would suggest that you carefully go over your budget and see how much the second job is really making for your family. You may be surprised by the answer.
