• Can You Afford To Stay Home?
  ©Copyright 2001 Sharon Davis
• Business Partners & Marital Partners, Will the Marriage Survive? (Part I)
  Chuck & Sue DeFiore

Can You Afford To Stay Home?
©Copyright 2001 Sharon Davis

A few years ago, after the birth of our second child, my husband and I were trying to decide whether or not it would be possible for me to stay home.

At first we thought that since we were just about breaking even, there was no way we could ever make it happen. But when we decided to actually put pen to paper and calculate our bottom line with and without my salary, we were quite surprised.

What we found was that it was actually costing us to have both of us working.

While that may not be the case for everyone, you may find that the second salary brings in much, much less than you think it does.

According to Jan MacGregor, a financial consultant and former analyst, "There are people out there who are expecting to be able to meet their bills better (after they re-enter the work force) and never realize they are either working for a loss or for something like $4,000 a year (after expenses)."

That may seem hard to believe, but if you consider the many "hidden" expenses of a two-income household it is often the case. There are, of course, the obvious expenses such as child care and commuting costs. Some of the hidden expenses are the money spent on lunches, more take-out and convenience food for dinner, dry cleaning bills professional clothing. There can be higher medical costs due to increased exposure to illnesses for children who are in daycare.

Many families hire a housekeeper or gardener to keep up on the household work that they don’t have the time to do.

A significant factor is your taxable income. A second salary can push your taxable income into a higher tax bracket.

While the tax issue in and of itself does not eat up the entire second salary, when you add in all the other expenses of a two income family, you might find that it’s not worth it to have both parents working.

Here is a link to MacGregor’s cost of living chart that uses a second salary of $40,000 as an example: Cost Of Living Chart

If you are considering having one parent stay at home, the best thing to do is to actually calculate your income and expenses, taking into consideration the difference in taxation. You may find that you can in fact afford to stay home with your kids.

The author:

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Business Partners & Marital Partners, Will the Marriage Survive? (Part I)
Chuck & Sue DeFiore

With today's economy, and the layoffs occurring as a result of these economic conditions, more and more people are opting to start their own business. Due to the low start up costs, the prevalence of home-based businesses is on the rise, many of these started by husband and wife teams.

With the move from the corporate world to the home-based, couples are finding that a new set of problems are occurring. In the corporate arena, two major areas of importance are profits and communication with employees. This is done through evaluations, reviews, meetings, or a company newsletter outlining company policies and news. All administrators realize that a happy and informed employee is more efficient and productive; in effect, increasing their profits.

Research on martial separation and divorce indicates two of the main causes of separation and divorce are communication and money, very much like corporate concerns. In the past, spouses worked in their respective jobs, and came home to discuss what was going on in the work place. In effect, they were sounding boards for one another. With the move to the home front, especially with starting up businesses together, the sounding boards are gone.

In effect, placing couples in a start-up business can cause a myriad of problems, previously seen only in the corporate world, in addition to the normal stumbling blocks of starting up a business. Too many couples working together are not practicing good communication skills. Lack of communication, can cause one spouse to feel that he or she is carrying all the business and monetary responsibility.

Keep Your Marriage Solid

If you and your spouse have decided to run a business together, be sure to discuss and outline the following:

Delineate responsibility. Decide who is going to handle what business matters. In addition, be sure you both know how to accomplish these functions. Unfortunately, illness occurs - you need to be able to back up each other in all aspects of the business. For example, if one of you does all the bank statements, be sure your spouse understands how this is accomplished, so if necessary, they can also handle this responsibility. If you have a set procedure you follow and a way you want it done, make up an outline, so it is accomplished in the manner you want.

Marketing, return calls, daily correspondence, invoicing, weekly and/or monthly expenses, supplies, calendaring, appointments, deposits, bank statements, implementation of the business plan, attendance at meetings (e.g. Chamber mixers, National groups, User groups, etc.) all need to be taken care of. You will have to split these responsibilities between you. Again, be sure you know how each is implemented, so in an emergency, you can back each other up.

Delineate responsibilities according to likes and dislikes and who will do the best job. We all have our little niches, and if it is something we like and do well, we can accomplish it better and more efficiently. Once the responsibilities have been delineated, make up a schedule for each item you both need to deal with. Again, you must be able to act as each others back up.

Marketing is a major obstacle. Most individuals do not like to use cold calling as a medium to promote their business. Be sure both of you are involved. Do not let one person handle this. In addition, develop a marketing strategy. Will you market daily, weekly, monthly? What kind of marketing will you do-advertising, cold calls, direct mail, etc. Again, be sure you both are involved. This is important because money and marketing are tied together. The more you market, the more aware the marketplace will be of the services you offer. If only one individual is marketing and monies are fluctuating, there is more tension between the partners to make the business successful. No one individual should have to carry this on their shoulders, or perceive that they do. In addition, with both spouses marketing, one person cannot blame the other for the success or failure of the business.

The Most Important Tool

Remember, the most important tool you both have is communication. Don't expect your spouse to read your mind. Keep the marriage and business separate. It's difficult, especially if you are home-based, but it can be done. If you have a problem with the way your spouse is accomplishing a task in the business environment, discuss it immediately. Do not wait. Do not let this build into anger that is transferred to your personal relationship. Remember that keeping your business and personal relationships separate is very important to the survival of both your business and your marriage.

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