How to Give Up a High-Paying Salary to Stay Home With Kids

Spending time with your kids may be invaluable.

While the thought of spending your days with your kids may be appealing, the financial strain of leaving a high-paying job may make doing so difficult. To make giving up your job easier, budget for the change and adapt your habits accordingly.

Instructions

1. Add your total monthly expenses. Include both your mandatory expenses, such as food and mortgage payments, as well as your optional expenses such as entertainment and leisure activities.

2. Add your expected monthly income after you leave your job. Include the contribution of your partner if applicable, child support if you will be receiving it, as well as any other income that you will have, including monthly drawings from your savings.

3. Subtract the expenses from your new monthly income. If you get a positive number, then you have enough income after quitting your job without making any changes to your spending habits. In all likelihood, you will, however, need to make changes.

4. Revise your budget to reduce your expenses. Start by making a budget that only includes necessary expenses. Then add optional expenses in order of priority.

5. Look for new sources of income if your expenses are still greater than your income. You might offer to babysit other children to make ends meet or look for a job you can do from home. Talk to your current employer to see about keeping a couple of shifts every week or every other week just to maintain some income.

References

• Census; Stay-at-Home Moms Are More Likely Younger, Hispanic and Foreign-Born Than Other Mothers; October 2009
• CBS News; Can Working Moms Afford To Quit?; February 2009
• "Finding Your Way Home: How to Become a Successful Stay-At-Home Parent"; Lucynda Koesters; 2005
• BabyCenter: Can You Afford to Stay Home With Your Children?