Friday, 25 August 2017

Being A Stay At Home Mum Made Financial Sense.


Earlier this year I posted about how we are living on one income because my husband works, but I gave up my job to be a stay at home mum. Many factors went into this decision but I thought I would give an insight into the financial costs as to why it didn't make sense to return to work.

The job I had was in London and I commuted for 4 hours a day, which is a lot I feel when you have children. There were 3 main expenses I would have had just to allow me to work, Train Ticket, Parking, and of course Nursery fees. The figures below are a rough guide as to how much everything would have been.

My Salary: £27,500 which is £21,081 after tax and student loan repayment.

Expenses:

Train Ticket: £6,072 for the year.

Car Parking: £40 per week = £1,920 for 48 weeks of the year as I would have had 4 weeks holiday.

Nursery: £11,280 based on 5 full days a week and 48 weeks of the year. Also, the nursery times meant I would have had to leave my work earlier to make it back.

Total: £19,272

So after just these 3 expenses, I would have had only £1,809 to put towards all our household bills for the year. I know for some that figure is still a lot of money, but for me, it did not seem financially worthwhile if it meant I would hardly get to see my child. My husband also worked in London so we both would have been missing out. We were lucky that after doing the sums it made more sense for me to stay at home as we could budget on just one income.

2 years after I handed in my notice we now have another girl, so financially we are so much better off by me staying at home. Also some extra things helped by cutting our food bill by 50%, decluttering the house with Music Magpie and using online surveys to make some extra income. Plus, I like to think of my job role here as CEO of my household.

Note: I would not have been entitled to working tax credits so that is £0 towards childcare.

Did you manage to go back to work after maternity leave?
How have you found childcare costs?

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