Lately, we’ve been hearing the catchphrase ‘When the BIG one hits’ quite a bit. What it refers to is the rumor of a ‘big’ storm, or the ‘big’ recession, or even the ‘big’ hit of an EMP, social collapse, or even war right here in our own country.
We’ve all probably heard the rumors, used the phrase, and thought about what our future will look like if it does happen. But that particular BIG one is something we can’t control. However, there is another BIG one we can control, and isn’t a rumor – it’s very real to us. This BIG one is our BIG dream. The one we have to quit our day job and stay home.
Now, wait. Before you think this one may not apply to you. You may love your job, or you may be the sole provider for your family, so staying home isn’t an option. Although I will focus on what it takes to fulfill the dream of staying home, there will still be ideas that apply to your BIG dream. You may have to think outside the box a bit, but the same principles still apply.
Simple Life Home Budget
Simple Life Home Income & Expense Spreadsheet
Simple Life Home Finance Bundle (Home Budget/IEW/Simple Life Dollars & Sense eBook)
The Farm Wife (website)
Let's Visit! (email)
Amazon Shop Page
Lately, we’ve been hearing the catchphrase ‘When the BIG one hits’ quite a bit. What it refers to is the rumor of a ‘big’ storm, or the ‘big’ recession, or even the ‘big’ hit of an EMP, social collapse, or even war right here in our own country.
We’ve all probably heard the rumors, used the phrase, and thought about what our future will look like if it does happen. But that particular BIG one is something we can’t control. However, there is another BIG one we can control, and isn’t a rumor – it’s very real to us. This BIG one is our BIG dream. The one we have to quit our day job and stay home.
Now, wait. Before you think this one may not apply to you. You may love your job, or you may be the sole provider for your family, so staying home isn’t an option. Although I will focus on what it takes to fulfill the dream of staying home, there will still be ideas that apply to your BIG dream. You may have to think outside the box a bit, but the same principles still apply.
Simple Life Home Budget
Simple Life Home Income & Expense Spreadsheet
Simple Life Home Finance Bundle (Home Budget/IEW/Simple Life Dollars & Sense eBook)
The Farm Wife (website)
Let's Visit! (email)
Amazon Shop Page
Lately, we’ve been hearing the catchphrase ‘When the BIG one hits’ quite a bit. What it refers to is the rumor of a ‘big’ storm, or the ‘big’ recession, or even the ‘big’ hit of an EMP, social collapse, or even war right here in our own country.
We’ve all probably heard the rumors, used the phrase, and thought about what our future will look like if it does happen. But that particular BIG one is something we can’t control. However, there is another BIG one we can control, and isn’t a rumor – it’s very real to us. This BIG one is our BIG dream. The one we have to quit our day job and stay home.
Now, wait. Before you think this one may not apply to you. You may love your job, or you may be the sole provider for your family, so staying home isn’t an option. Although I will focus on what it takes to fulfill the dream of staying home, there will still be ideas that apply to your BIG dream. You may have to think outside the box a bit, but the same principles still apply.
Whether your dream is to become a full-time homemaker, start a home-based business, or even to travel the world, there are a few things you need to have – those things are the dream itself, and then the desire, determination, dedication, and drive you will need to fulfill it.
BIG dreams won’t be handed to you on a silver platter. It takes hard work and a willingness to succeed. Let’s just call it a 5-D Mentality. And if you have all of those D’s lined up ready to go to work, then you need to start building a sturdy foundation.
The foundation is knowing and understanding the reasons for your dream, since leaving the comfort of a second income can be a huge step. Before you get serious about implementing it, you need to fully understand the ‘why’ behind your choice. Your reasons need to be sound. They can be the difference between regretting your choice and fully embracing the change in your lifestyle.
When it comes to quitting your job to stay home, if the only reason you want to make this change is due to the commute, the work itself, or a personality conflict with an employer or co-worker, but you still love the aspect of working outside the home, this dream may not be a good fit for you.
Instead, you may want to consider changing companies. Try to find something closer to home. If it’s the work itself you don’t like, then determine what you love to do, and search for something that suits you better.
If your reasons involve personality conflicts, you can try to find a different position, or work at another firm. However, be aware that no matter where you go, you may have to deal with the same issue.
If your reason for quitting your job to stay home is to fulfill your passion for taking care of your home and family, and it has a stronger pull than being employed outside the home, then it may very well be worth it.
But long before you turn in your resignation, you need to set some goals, and be willing to work hard to achieve them. The very first goal, and also the focus of this episode, should be to have enough income (and savings) to allow you to comfortably make this change.
First things first. Get your finances in order. As much as we don’t like it, money has a way of making or breaking our success. To just up and quit your job today when you’re already living paycheck to paycheck can result in hardships, getting deeper in debt, and even struggling to keep a roof over your head and being able to feed your family. And that’s not a dream – that’s a nightmare.
To get your finances in order, there is a process. First, you need to know where you currently stand. Knowing where you stand with your finances will tell you how much work you have to do to reach your goal. You will need to know exactly (or as close as possible):
· How much income you currently have
· What expenses you have
· Savings account balances and other investments, if you have them
Once you know exactly how much money you have coming in you then need a list of all of your expenses.
If you don’t already work from a Budget and Income & Expense worksheet, it will help tremendously to start. These two financial records will help you see what it will take to shift from a two-income household to a single income.
The Budget allows you to have a rough estimate of whether or not you are currently living in the ‘black’, (your income exceeds your expenses), or if you are living in the ‘red’ (your expenses exceed your income).
Your Income & Expense sheet is a more detailed accounting of your budget. It breaks down each category into specifics. The income section of your Budget may be set up as ‘John’, ‘Mary’, ‘Other’. Your Income and Expense will break down the ‘Other’ section into ‘Dividends’, ‘Gifts’, ‘Royalties’, ‘Bonuses’, etc.
Knowing exactly where your money is coming from will help you know where you have to adjust. For instance, if you get bonuses at your job, you will have to find ways to either offset or do without that income when you quit your job to stay home.
If you work from a Budget and Income and Expense sheet now, then this step will be a bit easier for you. If you don’t, it may be time to get started if you want to see your BIG dream fulfilled. And I can make this part easier for you. Be sure to check out my Budget and Income & Expense Spreadsheet links in the show notes. These are Excel spreadsheets that can easily be edited to fit your personal budgets and expenses.
If you are currently just breaking even, living in the shadowy gray area, or wading in the red, you want to start working on paying down your debt. This includes any credit cards, loans, and other monthly expenses that have a time limit. You also want to find other ways you can cut expenses as much as possible.
Once you have your budget and income and expense sheets set up, the next step is to put it to the test and see how well you fare living on one income. This will be a major challenge for those who have been living paycheck to paycheck. But the best thing you can do is to dive in.
No, this doesn’t mean you get to quit your job today. Instead, this is a way you can ‘try it on’, so to speak, before having to ‘buy’. The goal here is to work your way to a point where you can comfortably manage paying all of your expenses with one income while using your secondary income as a buffer and eventually a savings builder.
To start putting it to the test, you need to use your current Budget and Income & Expense to make a Trial Budget. This Trial Budget will reflect any income you will no longer have – paychecks, bonuses, etc.
Next, begin moving all of the expenses you will have regardless, such as utilities and mortgage, and removing any expenses that will no longer apply. The first ones to remove would be any that are connected with your job. This would be clothing allowances, transportation, such as subway, train, etc., and any other money you have budgeted FOR YOUR JOB.
Just know that ‘Transportation Expenses’ does not include gasoline. You may no longer be driving each day to get to work, but you will still have to use your vehicle, even if you won’t be driving as much. At this point in the planning stage, it’s best to leave your gasoline expenses as is.
Once you have eliminated work-related expenses, look closely at the remaining ones. First, you eliminate any of the ‘extras’, such as gym memberships and other items that are not a priority expense.
There are some categories that may need to be considered at the same time. Restaurants and the Groceries category are a good example.
If your plan is to start cooking from home more and eating out less, you will reduce one, but increase the other. However, if you plan well, cooking at home can still save you money. The grocery Budget will need to be increased, but more than likely not near as much as the amount you spend at restaurants.
Now it’s time to see if the adjustments on your Trial Budget are enough to quit your job to stay home. Be prepared: there is a good chance you will still be in the red.
If you are in the red, you have four options:
· Option 1 - go back and look more closely at your expenses, and make sure you have reduced or eliminated as many as possible. This may take some serious thought and consideration. Be sure you aren’t holding onto something that isn’t truly a necessity.
· Option 2 – look closely at any loans and credit card debt you have, and start working on paying those off
· Option 3 - consider a home-based side business. This can be a part-time endeavor or a full-fledged business. Either way, it may produce enough income to balance the Budget.
· Option 4 - continue working until your primary income changes. That may be through a raise, an inheritance or other resource.
Regardless of whether you are in the red or black, now is still a good time to begin working towards living on a single income. You may not be able to quit your job yet, but don’t give up hope. It can still be done; you just have a bit more work to do in order to reach your goal.
Are you still considering quitting your job to become a full-time homemaker – but the numbers just don’t add up yet? Stick around – next week we’ll be talking more about how to reduce your debt. And don’t forget to check out my Budget and Income & Expense Spreadsheets – they can make a world of difference in keeping up with your finances!
If you want to learn more about living a Simple Life, just visit my website at www.thefarmwife.com/. If you’re enjoying listening to these podcasts, you can support the show by clicking the SUPPORT button in the show notes. When you do, you’ll be helping me continue bringing you fun and helpful ideas for living the Simple Life you love!
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Thanks again for stopping in. I will see you next week on Living a Simple Life with a Back Porch View. And while you are waiting for the next episode, grab that glass of refreshment, pull up a rocker, and sit back for a while. It’s time to relax and enjoy.
Simple Life Home Income & Expense Spreadsheet
Simple Life Home Finance Bundle (Home Budget/IEW/Simple Life Dollars & Sense eBook)