I really need your thoughts and comments on this one. I will do my best to describe our situation. We are seriously figuring out whether to have momma stay at home instead of working and I want to get any opinions from others who may have done it.
My salary is roughly enough that we can afford to make ends meet so to speak. But we have been using her salary to pay down the debt and continue the snowball effect at the rate we were. But what I realized the other day is that our expenses of her working are continuing to rise and I don’t think it fiscally makes sense any more.
Here’s the deal…
By keeping the kiddo out of daycare, we would save about 4500 dollars off the top. By her not driving to work every day (20 miles away) we would save about 100 dollars a week in gas and about 500 a year in vehicle maintenance costs. Add to that the 3000 less a year in taxes we would owe from just being taxed on my income. Then is the kicker, our child is not only very high needs, but has a very weak immune system and is sick (fever, etc) once a week. Therefore we end up at the doctors office about 4 times a month which costs about 100 bucks minimum a pop with the lab tests. By staying home with mom, he would surely still get sick occasionally but he wouldn’t be exposed to the cesspool of communal diseases at the day care. Since the health care industry has gone to hell, our insurance is now an HSA which means we pay the first 6k out of pocket before insurance even does anything.
So to tally that up:
$5500 Gas (100×50 weeks of the year)(2 weeks off) and maintenance
$3000 Less taxes to pay
$4800 Cost of DR. Visits
$17,800 Total cost of her working
After doing up a spreadsheet with the scenario and running it out until January 2010, it seems feasible.
It would just give us enough to continue to make our snowball continue on and keep our debt reduction efforts going without changing too much. It would require that we become extra frugal and watch every penny (more than we do now).
But the plus side is that mommy will be able to be at home and raise our child and not be running on the verge of a mental/physical breakdown herself. Plus, if we ever had infant #2 come along, the plan is sort of set in motion already to accommodate it.
Anyway, we haven’t made any decision yet, but I would love to hear your comments or experiences with this yourselves. This is not a decision we take lightly, and as you can tell, I have already spent dozens of hours analyzing scenarios.
Thanks in advance!