Are you currently employed as a stay at home parent, being paid with hugs and kisses?
Do you feel as though you no longer have your own money and hate the thought of going to your spouse to ask to buy something or for money to get your hair done? Have you depleted an emergency fund and retirement savings you spent years building up? Is an inheritance slowly dwindling?
You are not alone. In conversations with my friends and colleagues, it has come to my attention that this is a common phenomenon. Stealing from yourself has become a dirty little secret that many women are carrying.
While these days are precious and worth far more than any paycheck, you cannot stop thinking about your financial future. Relying on your spouse’s income can have a long-term impact on your financial future.
When you are working hard and not being paid your worth, you feel undervalued. This is the quandary of the stay at home parent. You are doing the most important and difficult job in the world. Without a monetary income, a feeling of dependence, guilt and having to ask for permission takes over.
One solution is to create a Parent Paycheck. Salary.com estimates this priceless job to be worth $162,580! It’s unlikely your spouse’s income can support this, but you can determine an appropriate amount for your discretionary spending and to continue to add to an IRA.
First EVALUATE your family's budget. Add up all the essential bills and subtract that number from the amount that is deposited into the bank account from your spouse’s employment. This is your family’s discretionary income. Make sure you are continuing to build an emergency fund and save for retirement with a portion of this difference. After you have allocated your savings, then consider splitting the leftover discretionary amount 25% to you 25% to your spouse and 50% for the family.
If there is not much room between these numbers, consider starting a side gig. Find your passion and run with it. A part-time income can help bring in extra cash flow so you can add to your IRA and buy a new pair of shoes without feeling guilty.
- If possible, gain consulting work in the field you were in prior to becoming a stay at home parent.
- Find a product that you love and start selling it. Look into some of my favorite companies like Beachbody, Young Living, Norwex or Rodan+Fields. These companies not only can give you an outlet and introduce you to new friends, but they also help you add new skills by providing entrepreneurial training.
Next, PLAN on setting up a Spousal IRA. If you are within certain income limits, you may be eligible to contribute to either a Traditional or Roth IRA. If you have a side gig, you will want to look into opening a SEP IRA. Set up an automatic monthly transfer to your IRA so you are paying yourself first. No amount is too small. Even as little as $25/month will add up. Something is better than nothing!
PROTECT yourself and your children by making sure an appropriate amount and type of life insurance has been purchased for the primary earner. Take a moment to think about what would happen to you and your children if your spouse’s income ceased. Would you be able to pay the bills? If so, for how long? Because life insurance is the foundation of your financial plan and can be confusing, schedule a coaching call for your life insurance needs analysis.
INVEST in yourself. If your goal is to eventually go back to work, invest in your education and keep your skills up to date. This will make for an easier transition back into the workforce.
We are here to COACH you through this important time of life. Your job is the most valuable on the planet and comes with sacrifice, but it should not be filled with a feeling that you don’t have your own money.
When you endanger your current and future financial security, you also threaten your family’s financial stability.
Current clients and future clients, schedule your coaching call to learn how to apply The EPPIC Method™ to create your Parent Paycheck.
Schedule Your Coaching Call Here.
Share with your friends and family who are stay at home parents to help them Be More Healthy, Wealthy and Wise™.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss.