Quitting your job to run the household is a significant decision that you and your spouse must mutually agree on. The two of you need to make considerable changes in your lifestyle. On the financial aspect, here are some things that you may dwell upon:
#1: SHY AWAY FROM THE TERM “ALLOWANCE”
Take a trip down memory lane to visualize your primary school years. Was it carefree or stressful? One thing is for sure! Most students depend on their parents to sustain their financial needs. An allowance is given to regularly meet a student’s daily expenses. Calling it allowance highlights that the parents are in control of the child’s financial situation. The mere definition of the word signifies an amount that is permitted for a specific purpose.
If a parent is working and the other is a homemaker then, try shying away from the term “allowance”. As I said, it exudes a sense of authority over the dependent party. You do not want that! As much as possible, you need to cultivate maturity and respect in your relationship. Opt for friendlier terms such as personal budget or entertainment fund.
#2: CREATE A COOPERATIVE BUDGET
It is unfair to strictly control the budget of your spouse and the entire family just because you are the breadwinner. It is important to recognize that running the household is as important as bearing the salary. Staying at home to take care of your children saves cash that might otherwise be spent on child care. This contribution is often overlooked by the society. Turn the tables around by allocating money for the you and your spouse’s personal needs.
Decide on an equal percentage of the breadwinner’s income. This equal percentage will go to the anticipated expenses such as clothes, grooming, and gifts.
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As Manisha Thakor, the author of Get Financially Naked: How to Talk Money With Your Honey, once said: “When both feel they have the daily freedom to treat themselves…household well-being prospers.”
#3: CONSIDER DIVING INTO INVESTMENTS
You put your cubicle job aside to fully commit on raising your children. This comes with lots of changes including the division of your time. With your newfound hours to spare, educate yourself on efficient ways to grow your savings.
Consider diving into the world of passive income. Investing your money on passive income allows you to reap profit while you sleep. Passive income includes dividend stocks, bonds, and index funds. It is crucial to read about the different types of investments to suit your preferences. For instance, people who can only tolerate low risks may invest their Ang Bao money on the Singapore Government Securities (i.e.,local bonds).
Related Article: How To Start Investing In Singapore
#4: BECOME AN ENTREPRENEUR
With our access to modern technology and other tools, you can accomplish the tasks of a stay-at-home parent and an entrepreneur. Earn extra money by creating an online business. You do not have to break the bank to set up your own online shop. Free websites such as Carousell and Tictail enables you to showcase your products. Furthermore, these platforms have a growing following of audience or customers already.
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Do you love to make cupcakes, jewelry, or essence oils? Turn your hobby into your own business. The possibilities are endless.
