Deciding to become a stay-at-home mom is a big decision, especially when you’re living on a low income. You might be asking yourself, “How do families afford stay-at-home moms?” or even thinking, “I can’t afford to be a stay-at-home mom.” I’ve been there, and I understand the concern. But with careful planning and a bit of creativity, it’s possible to live on one income and make this dream a reality.
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I Want to Be a Stay-at-Home Mom
Living on one income in today’s world isn’t easy, but it is possible. Before having my son, I never even considered becoming a stay-at-home mom. But after returning to work, it quickly became clear where my heart was. For me, staying home with my son was a priority. I remember sitting in a meeting, thinking, “I could miss my son’s first steps for this,” and that realization tore me apart inside.
But here’s the thing—I was bringing in two-thirds of our household income. So, how could I afford to give that up?
How to Afford to Be a Stay-at-Home Mom
Whether or not you can leave your job often comes down to a simple math equation: Do your expenses equal less than your partner’s income? If the answer is yes, then you might be able to quit. But if not, don’t lose hope. With discipline and sacrifice, you can make it happen. If you’re determined, nothing can stop you.
Evaluate Your Income and Expenses
The first step is to understand exactly how much you’re making and spending. If you already track your expenses, you’re ahead of the game. If not, now’s the time to start. Sit down with your partner and dive into your spending—look through bank and credit card statements, and figure out where your money is going. How much is necessary, and where can you cut back? I recommend looking back over a full year to account for any large annual or semi-annual expenses that might surprise you later.
It’s essential to know your numbers before making any big decisions. I found that by closely tracking our spending, I was able to pinpoint areas where we could cut back without feeling deprived. This step might seem tedious, but it’s worth it in the long run. Knowing exactly where your money is going gives you the power to make informed decisions about your financial future.
You can download the spreadsheet I use to track my expenses plus all of my other free resources by signing up for my newsletter below.
Create Your New Budget
Once you know where your money is going, it’s time to create a budget for your new life as a stay-at-home parent. Start by listing the essentials—housing, utilities, food, transportation, insurance, etc. Once you have those covered, you can start adding in luxuries as they fit your budget. Take your time with this step. If you’re not feeling confident about your new budget, look for additional ways to cut costs.
One of the best strategies I found before making the leap was to practice our new budget before quitting my job. Give yourself a couple of months to do a trial run of the new budget plan. During this time, live as though you’re already on one income and bank 100% of your paychecks. This trial period gives you the chance to see if your budget is realistic and to tweak it where necessary. Plus, you’ll start building a nice cushion in your savings account for any unexpected expenses that might come up when you officially transition to one income.
Remember, your budget is a living document. It should change and adapt as your life does. I recommend revisiting your budget monthly, especially in the first few months, to ensure you’re staying on track. This is also a great time to evaluate your priorities and make any necessary adjustments.
How to Lower Monthly Bills
How to Reduce Housing Costs
One of the biggest expenses for most families is housing. To live on one income, you might need to make some drastic changes—like downsizing your home or moving to a lower-cost area. For example, I moved from Maryland to West Virginia, reducing our housing costs from $1,400 a month in rent to $440 per month for a mortgage, including property tax and insurance. West Virginia gets a lot of hate, but I love it here. The pace of life is slower, the community is tight-knit, and the natural beauty is something you just can’t find in the city. Plus, the lower cost of living has allowed us to live comfortably on one income.
Consider your housing situation carefully. Can you downsize? Would relocating to a more affordable area be feasible for your family? These decisions aren’t easy, but they can significantly impact your ability to live on one income.
How to Reduce Transportation Costs
A big car payment might be another obstacle to becoming a stay-at-home mom. Consider trading in your car for a cheaper, but still safe, option—or even downsizing to just one vehicle. You can also save on transportation costs by consolidating your errands into one day each week. This way, you’ll spend less on gas and reduce wear and tear on your vehicle.
Regularly check for better insurance rates as well. It’s a good idea to get new quotes every year to ensure you’re getting the best deal. Websites like The Zebra, Gabi, and Compare.com can help you compare quotes and potentially save you hundreds of dollars annually.
Transportation costs can add up quickly, especially if you’re used to a long commute or multiple vehicles. By making a few adjustments, like driving less or opting for a more affordable car, you can significantly reduce these expenses. It’s all about finding a balance that works for your family.
How to Reduce Food Costs
There are endless ways to save on groceries, but what’s worked best for me is planning meals around what I already have and what’s on sale that week. A great tip is to start with the first page of the grocery ad, which usually features “loss leader items.” These are foods that the store is selling at a loss just to get you in the door. Plan your meals around these items to save the most money.
Avoid buying too many snacks—stick to just a few for the week and eat larger portions at mealtime to stay full. Meal planning and shopping smart can make a huge difference in your grocery budget. I’ve shared more detailed tips on meal planning and saving money on groceries in my post, “Simple Meal Planning for Busy Moms: Save Time and Money“. It’s a must-read if you’re looking to trim your food costs without sacrificing quality.
How to Pay Off Debt
Debt can drain your budget faster than anything else. If you have debt, make it your goal to pay it off as quickly as possible using methods like the snowball or avalanche methods. Whichever method you choose, the key is to stay out of debt once it’s paid off.
Strategies for Paying Off Debt
Paying off debt can be one of the most liberating things you do, especially if you’re preparing to live on a single income. Two popular methods to consider are the snowball method and the avalanche method.
The Snowball Method
The snowball method focuses on paying off your smallest debts first while making minimum payments on your larger debts. As you pay off each small debt, you take the amount you were paying on that debt and apply it to the next smallest one. This approach gives you quick wins, which can be motivating and help you build momentum as you see those debts disappearing one by one.
For example, if you have a credit card debt of $500, a car loan of $5,000, and a student loan of $20,000, you would focus on paying off the credit card debt first. Once that’s gone, you take the money you were paying toward it and start paying down the car loan even faster.
The Avalanche Method
The avalanche method, on the other hand, is all about minimizing the amount of interest you pay over time. With this method, you focus on paying off the debt with the highest interest rate first, regardless of the balance. While this method might save you more money in the long run, it can take longer to see progress, which might be less motivating for some people.
If you’re carrying a high-interest credit card debt at 18% and a student loan at 6%, you would focus on paying off the credit card debt first, even if the balance is larger, because it’s costing you more in interest.
Both methods are effective, so it really comes down to what motivates you more—seeing quick progress or saving the most money in interest. Whichever method you choose, the key is to stick with it and stay out of debt once you’ve paid it off. Being debt-free gives you more financial flexibility and makes living on one income much more manageable.
How to Live Within Your Means
Living within your means is all about being intentional with your spending. Don’t get caught up in trying to keep up with the Joneses—focus on what’s important to you and your family. This might mean saying no to the latest TikTok trend or opting for a weekend camping trip instead of a fancy resort stay.
Choose Free Entertainment
One of the best parts about being a stay-at-home mom is having the time to create lasting memories with your kids, and you don’t need to spend a lot of money to do it. There are so many activities that are fun, educational, and free.
Library Visits
Libraries are a goldmine for free fun. Some libraries have storytimes, craft events, and play areas for kids. Plus, you can borrow books, movies, and games. Making regular library trips can become a special tradition that your children look forward to.
Nature Walks
Exploring the great outdoors is not only free, but it’s also a great way for kids to learn about nature. Look for local parks, nature trails, or even just walk around your neighborhood. You can make it a scavenger hunt by giving your kids a list of things to find—like a feather, a pretty rock, or a bird’s nest.
Picnics in the Park
Pack a simple lunch and head to your local park for a picnic. Bring a blanket, some toys, and enjoy the fresh air. You can even turn it into a learning experience by talking about the different types of trees, plants, and animals you see.
Crafting with Recycled Materials
Get creative with items you already have around the house. Old magazines, cardboard boxes, and even toilet paper rolls can be turned into fun craft projects. Sites like Pinterest are full of ideas for crafting on a budget.
Cooking Together
Involve your kids in meal preparation. It’s a fun way to teach them about cooking, and it doesn’t cost anything extra. You can even turn it into a math lesson by having them help with measuring ingredients.
There’s so much you can do with your kids that doesn’t require spending money. For more ideas, check out this post on 60 Free and Inexpensive Hobby Ideas. Also, check out my Discounts, Referrals, & Resources page for even more savings.
What if an Emergency Happens?
Sooner or later, something unexpected will come up that costs a large chunk of money. That’s why having an emergency fund is crucial. Studies show that 44% of Americans aren’t able to cover a $1000 emergency, and I can say from experience that most emergencies will cost you more than that! We aim to save 3-6 months of expenses, but there are several trains of thought on this topic. I do believe that $1000 is much too low, but it’s a great goal if you are starting from zero. One of my favorite podcasts, “The Money Guy Show” recommends saving enough to cover your highest deductible when starting your emergency fund.
Having an emergency fund gives you peace of mind and protects your family from financial stress. Life is unpredictable, and having that cushion can make all the difference when unexpected expenses arise.
Cut Non-Essential Spending
In an emergency, the first step is to immediately cut non-essential spending. This means anything that isn’t necessary for your survival should be put on hold. Pause subscriptions, avoid eating out, and focus on the essentials.
Create a Backup Plan
I have a couple of income streams in my back pocket that I can pursue if we ever get in a pinch. Take some time to reflect on your skills and make a plan for how you could bring in extra money if needed.
If you’re looking for ideas on how to make extra cash while still being able to focus on your family, I’ve got you covered. My post on “How to Make Extra Cash from Home While Your Baby Naps” is packed with practical tips on how to turn your skills into a side hustle.
Seek Assistance
If you find yourself in a financial bind, don’t be afraid to seek help. There are community resources, food banks, and government programs designed to help families in need. It’s okay to ask for help when you need it.
The Bottom Line
At the end of the day, affording to be a stay-at-home mom comes down to how badly you want it. Are you willing to make tough decisions to make it happen? Our household income went from $145,000 to about $50,000, but we aren’t stressing about money. I love my life as a stay-at-home mom and can’t believe I waited so long to make the switch.
Summary
If you’re serious about becoming a stay-at-home mom, I have plenty more tips and tricks on saving and making money. Sign up for my newsletter because I have big things in the works. And don’t forget to follow me on Pinterest and Reddit so you never miss a post!
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