With a monthly income of $ 2,800 and a mortgage of $ 1,100, does it make sense to enroll our children in daycare so my wife can go to work?
I’m making about $ 2,800 a month and our mortgage payment is $ 1,100. We have been forced to withdraw money from our savings account occasionally over the past year to help pay the bills. My wife loves being a stay at home mom with our two preschoolers, but even she talks about finding daycare for the kids so she can get back to work and help out financially. What do you think of this idea and our situation?
I can’t fault your wife for loving the idea of staying home with your kids when they’re so young. Being a stay at home mom is good if you can make the numbers work. Still, I’m sure it’s no picnic trying to live on $ 1,700 a month with two little ones in the mix.
Let’s look at it as a math problem with three components: house payment, income, and lifestyle. Forty percent of your salary goes towards your home. It’s way too much. Your mortgage payment or rent should never exceed 25% of your take-home pay. I guess you might want to consider refinancing your home, but that won’t solve all of your problems.
One option would be to find a way to generate additional income, be it working part-time at night or on weekends, or to pursue additional education or certifications to increase your level of income at work. Another is to sell the house and find a cheaper alternative, but I’m never a big fan of this idea – especially in a family situation – unless there is absolutely no other way to avoid the bankruptcy or foreclosure.
I think you and your wife need to sit down and spend some time chatting, working out the numbers, and making a plan. There are going to be sacrifices for everyone, and only you can decide what’s worth and what isn’t – for both of you and your children.
God bless you and your family, Cade.