Stay at Home Moms vs. Working Mom's-- The Shocking Truth About Second Incomes!

Whether you are currently a stay at home mom or just deciding to stay at home, this information clearly uncovers the reality of what a second income really does to your family's finances.

I have mentioned this little tool before, MSN's Second Income Calculator but recently, I sent a friend of mine, Kelly, the link and what she found out has caused quite the ruckus in her home. At her request I am posting Kelly's story here in the hope that this will help other families facing this same issue.

I didn't know this, but Kelly has been grappling with the whole stay at home moms vs. working mom's controversy for the last 3 months. Kelly and her husband just had their second child and last week Kelly's Family Leave was up so she had to return to work.

Kelly has always seemed like the dedicated career woman, she has worked her way up the company ladder with 3 promotions over 11 years. Kelly doesn't have a college degree so she has always been afraid to quit her job because she knows that she will never be able to re-enter the work force at even half of what she makes now.

Fortunately for Kelly, and up until now, she has been able to keep daycare time and costs at a minimum. Between her parents and in-laws, she didn't feel like that was an issue. But with the addition of the baby, and her now traveling parents, daycare costs and time have increased substantially.

Also, Kelly got to spend 3 months at home with her newborn daughter and 10 year old son. Something she was unable to do when her first was born.

This 3 months at home has forced her to come to the realization of just how much of her kids childhood she is missing out on.

Her husband David, is very analytical, so pleading the emotional end of this heated topic has done nothing for Kelly or their marriage. However, when Kelly completed the questionnaire on MSN's Second Income Calculator, it was just what her husband needed to gain a very insightful perspective on their current lifestyle.

Here are Kelly's Stats, see what you think her next move will be!

In 2006 Kelly's husband David, made $62,274 and in 2007 he made $63,239.
Kelly made $40,500 in 2006 and in 2007 she made $37,576.
Kelly's salary for 2008 will be $42,000.

Using the MSN Second Income Calculator is quite simple. You plug in your husbands income, how much taxes he paid.

You enter the second income in the "this year's projected income---2nd wage earner field."

Then, you figure out the amount of additional monthly work expenses you incur with Mom's income. Believe it or not, these are not frivolous expenses that you would think an upper middle or upper class couple would incur, but rather everyday expenses that you just take for granted.

Child Care with the additional help Kellys Childcare is $1,100 a month

Clothing Kelly had to buy some new clothes--post pregnancy figure $120 a month

Dry Cleaning $70 a month

Commuting Costs $360 a month

Unreimbursed expenses $100 a month

Entertainment $100 a month

Meals Out $240 a month

Services (Kelly has to work 10hrs a day so she hired a part-time cleaner) $200 a month

RESULTS

Change in Annual household income $878

Additional dollars per hour $0.35

Total annual income Not Working $62,274 Working $104,739

Income taxes, Social Security & Medicare Not Working$12,611 Working$26,718

Related expenses Not Working$ 0 Working$27,470

Household income Not Working$49,663 Working$50,541

Shocking! It seems that in this case study the IRS is the only one that benefits from Kelly and David's dual income.

I showed Kelly my Schedules A and C (business profit and loss tax statements) for 2007. Together, we determined that even if she started a home-based business and only worked very part-time, she would still come out $1,000' s of dollars ahead with all of the deductions she can claim.

Kelly and Dave were also concerned about Kelly's 401k so they have an appointment with an investment counselor at their bank next week. After they get this part of the equation sorted out, Kelly is going to give her two weeks notice.

Kelly can't believe that she has basically been working for .35 Cents an hour!

I think Dave pretty much summed it up though when he said,

"I'll be da____ed if my kids aren't worth more than $878.00!"

Homeschool Moms Work at Home

Actually if you are a mom that home schools, you are the perfect candidate for Working at Home!

As a homeschooler myself, I have found that working online has enhanced our school curriculum in many ways. In fact I have incorporated it into our weekly class schedule! With the truculent economy and job security at an all time low, I feel that it is imperative to the future of our children's financial security to learn business skills much earlier than they are taught in either public or private learning institutions.

I actually found a Work Online University called the Wealthy Affiliate. While it is geared towards adults, children can also benefit from the skills that are taught in this highly interactive format.

The Wealthy Affiliate teaches it's members how to make money working at home online. This Online University specializes in Affiliate Marketing. Of course Marketing Strategies are stressed, but so is product creativity. Which I think is critical for everyone, especially our children as they tend to have fewer inhibitions when it comes thinking of new things to invent.

The Wealthy Affiliate Membership Site is designed for Beginner through Advanced Marketers. It truly is a one of a kind learning experience. The beginners are mentored by more advanced members and of course the owners--Kyle and Carson, two young multi-millionaires who started Internet Marketing on a shoe string budget while they were in College.

I believe that it is their collegiate experience that has directed them to set up this massive, yet user friendly site that contains every tutorial, guide and tool that you need to learn how to make money online.

Not only I have become very successful from the classes, videos and mentoring that I have received from Wealthy Affiliate, but my children 13, 11 and 9 are starting their own online business (with my supervision of course).

After learning how affiliate marketing works, they have decided on a start up idea, I have given them a budget and they are already designing a website and delegating duties amongst themselves. This would not be possible without our Wealthy Affiliate Membership.

Home school Moms Work at Home with Wealthy Affiliate, you'll be teaching your children a life skill that they will thank you for.

Free Work for Stay At Home Moms

Is there really a way to start up an online business that is absolutely free? The answer is yes!

So many moms tell me that they want to start up a home based business online, but they just don't have the capital or knowledge of how to begin.

In my opinion, working online is one of the best options available for stay at home moms. You can actually start a genuine work from home job with no money right now.

Before I explain how, you need to understand something. One of the biggest reasons that so many people fail or never even get off the ground with their home based business is because there is a lack of commitment and true understanding of what it takes to make money online.

You must commit yourself totally to your business. Decide what type of area you want to concentrate on and stick with it. Do not hop around from Biz Opp to Biz Opp. Here are some questions/statements you need to ask yourself to find out if working online is really a good match for you.

1. I can type?

2. I want to work from home on my computer.

3. I like the thought of working online.

4. I can work at least 20 hours per week to start.

5. I like to share my experiences and opinions with others via writing.

6. I can focus on the task at hand and not get side tracked.

7. I am willing to do whatever it takes to succeed.

8. I am willing to learn. So when I am curious about something, I don't mind doing a little research.

9. I have a word processing program and winzip on my computer.

10. I understand that a home based business is just that--a business and there for I will keep accurate records. I may even need to visit an accountant to see what the tax benefits are for starting a business.

11. I don't need the comradery or recognition that you get from working with people.

If you truly want to make money online, then you should have answered every question with a yes.

Let's talk about number 10 for just a minute. If you want to make money online, it can often be a lonely place. Especially if you aren't part of a forum or business opportunity that isn't interactive. But no matter how much interaction you have online, it is not the same as going to the office or a sales meeting and getting human contact and recognition.

Some people truly can not handle this type of working environment. And that is OK, as long as you are willing to recognize this within yourself.

If you are ready, and you are looking for a legitimate way to work online for free then you can visit http://www.legitimateinternet.com/ for great resources and a free online business.

Jobs For Stay at Home Moms

Are there really any legitimate jobs out there for stay at home moms?

Before we get into the answer for that question, let's consider the difference between jobs and business opportunities and which one is better for you.

Of course a job is when you work for someone else, during certain hours, performing certain tasks for a certain rate. Note key word here "certain." There is certainly a constant in having a J.O.B. (also known as Just Over Broke). While you are guaranteed a certain salary you also have to work those designated hours and your income is probably capped. Plus you have to answer to a Boss. Not always an easy thing to do when the baby wants to be fed!

In my opinion having your own home based business is the only way to go if you are a stay at home mom. Not only are the tax benefits incredible, but the endless opportunities are too appealing to not consider.

Just like a Job, being a success with your own business requires commitment. Usually, when home based businesses fail, it is due to not treating them with the discipline that a J.O.B. requires. The good news is, if you have had a job in the past, then you probably have the work ethic it takes to have a successful home based business.

Just remember this, once you find your niche and get your business off the ground, ask yourself this question every day.

"If I were a Boss, would I pay me today?"

Just reading this question is so powerful that I have kept it on a post it note attached to my computer from the first day that I started my Home Based Business.

The best advice I ever got was from some that explained this to me-- how doing little things every day would lead to bigger returns as time went by. But of course the key to this whole methodology is Focusing.

If you are looking for a legitimate work at home opportunity for stay at home moms then you should check out $5 Bucks a Day. This ebook and forum explains step-by-step how to have a lucrative and legitimate work at home Business by doing little things that bring in the income stay at home moms need.

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