Working from Home: Paying for Childcare

Posted: 09 Sep 2010 04:00 AM PDT

One of the interesting issues that arose before my son reached school age was that of me having enough time to work from home. The main thesis of working from home is that, since you work from home, you don’t need to pay for childcare. Because so many people assume this, I got a number of odd looks when others found out that my son was attending a little day care twice a week for a couple of hours by the age of 2 1/2. As soon as we was old enough, my son began attending preschool. Many were baffled by our decision to pay for childcare when my son could just stay home with me all day.

For us, though, paying for childcare — a few hours a week — was worth it. With my husband working on his Ph.D., our only time together is really in the evening. For the sake of our relationship, we decided that it made sense for me to get as much done during the day as possible. That way, I wasn’t working in the evening after our son went to bed. In order to make it work, we decided that paying for childcare was the way to go. Our son started in childcare four hours a week, and gradually worked up to nine hours a week by the time he was ready to start in elementary school.

This time that my son spent in childcare was not terribly expensive (childcare in our town is quite cheap), and it provided me with a concentrated block of time to be more productive without distractions. I was actually able to make more as a freelancer — even after subtracting the cost of childcare — with my son gone for a few hours a week.

Deciding Whether Childcare is Right for Your Family

Whether you work from home or not, there is a good chance that your family has to decide whether or not paying for childcare is worth it. My brother’s family is discovering adding an extra part-time job is hardly worth it; childcare in their town is so expensive that nearly everything made from such a job, after taxes, would go to daycare/preschool expenses for their daughter.

Deciding whether childcare is worth it in your situation requires that you consider alternatives, and run the numbers. Find out how much childcare costs in your area, and whether or not there are low-cost alternatives (such as a subsidized preschool or Head Start program). Figure up how much you could make with a job, or by having more time to work from home uninterrupted. Subtract your childcare costs from that total to determine whether or not it is worth it. Of course, money isn’t everything. Other factors to consider include:

Social development of your child
Whether you could use a break
Quality of care available

In some cases, it is possible to hire someone to come into your home and care for your children for a two or three hours a day while you work. You are still on the scene, but someone else is helping you take care of your children and entertain them. Others feel that working outside the home, or having a couple hours of quiet every other day, is worth it. As long as you are breaking even (or can afford the loss), this can be an acceptable arrangement.

Evaluate your options, and your family’s financial situation. You might find that a few hours a week of childcare might actually be a boon to your family, even if you work from home.

Dollar Matters: Making Money Edition

Posted: 08 Sep 2010 09:00 AM PDT

We all want to be able to earn a little more money. For most people, the ability to put a little more in their pockets is something to be desired. Indeed, a recent survey reported by the Wall Street Journal indicates that happiness is an annual salary of $75,000. So I thought that, for this edition of Dollar Matters, it would be nice to address issues related to making money. If you aren’t earning $75,000 a year, here are some posts that might help you increase your income:

Make Money Money Blogging: A Guide for Beginners on How to Make Money Online

Craig at Money Help for Christians offers a helpful guide for those who want to make money as a blogger. Craig outlines a plan for making money online, and how he can generate a full time salary writing online. A practical guide that, as someone who supports my family with online writing, I can say will probably help you.

How I Keep Track Of Blog Income and Expenses And Why It’s Important

Peter at Bible Money Matters provides you with a helpful guide for keeping track of your blog income. So, once you get started making money as a blogger, you can ensure that everything is accounted for.

Residual Income Business Ideas — 3 Tips To Save Time and Money

If you are looking to develop residual income, Neal at Wealth Pilgrim has some helpful advice. Offering realistic and practical advice, Neal gives you what you need to be more efficient as you develop alternative income streams.

You May Need To Pay Estimated Taxes If You Make Side Income Blogging Or Via Other Avenues

Mr. Money at Smart On Money provides a look at paying estimated taxes. I do this every quarter, without fail. The government wants its cut of any income that you bring in. This is a helpful article that helps you understand paying estimated taxes, and how you go about doing it.

SBA Business Loans for Funding Your New Start up Business

If you are looking for ways to fund your small business venture, this helpful post from Jeff at Good Financial Cents can provide you with plenty of options related to funding. You probably need some start up capital. Read about the different programs that can help you get the money you need to…make money.

Dividend Investing 101: Why You Should Buy Dividend Paying Stocks

One way to cultivate additional income and build long-term wealth is through dividend paying stocks. Shaun offers helpful suggestions on Moolanomy about how you can get started with dividend paying stocks, and how they can help you reach your wealth goals.

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