Top 7 Action Steps to Pay Off Debt in Order to Stay Home with Your Kids
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Blueprint
There are many moms (including myself), along with a few dads, who would love the opportunity to exit the rat race and stay home with their kids full-time. However; for many parents, this is only a dream. They just can’t seem to figure out a way to really make this happen. Since this is something I am currently working on, I thought it would be a good idea to write a post about the topic while motivating myself at the same time. Below, I have provided the top 7 action steps to pay off debt in order to stay home with your kids.
- Brainstorm the process
- Create a budget
- Evaluate spending habits
- Use the debt snowball method
- Start a side-hustle
- Ask for a raise
- Find motivation
Top 7 Action steps to Pay Off Debt in Order to Stay Home with Your Kids
1. Brainstorm the process
Have a talk with your spouse and write down the plan for how your dream of becoming a stay at home mom or dad will happen. Make sure that you are both on the same page as it relates to expectations. You may want to discuss some of the following questions:
- How much longer will I need to work in order to pay off debt?
- What can I do to earn more income to knock down debt?
- Which debts are we focusing on? Consumer debts only? Mortgage included?
- What are the trade-offs of having one less income?
- What are the benefits of staying at home with the kids?
- How long will I stay at home with the kids? Is this permanent? Temporary?
- If returning to work in a few years, what is the plan for re-entry into the job market?
2. Create a budget
Sit down with your spouse and write down all of your household income and expenses. Add up all of your expenses and subtract it from your income. Ideally, the goal is to have more income than expenses. If your expenses total more than your income, don’t worry, you will be making some changes in step 3. Recently, I posted an in-depth article about budgeting with your spouse. Go ahead and check it out here: 7 Strategies to Help You Budget Better with Your Spouse.
3. Evaluate spending habits
Determine where you are overspending. Once you’ve created a budget, decide if there are any expenses that you can cut out such as unused subscriptions, frequent eating out, expensive habits, etc. This will allow you more money to throw at the debt. The goal is to trim any expenses that will help you get to the goal faster.
4. Use the debt snowball method
Use the debt snowball method to pay all you can towards the debt. List your debts beginning with the debt that has the lowest balance, ignoring the interest rates. Then make the minimum payments on all balances except for the debt with the lowest balance. Any extra money, in addition to the minimum payment, should be paid towards the debt with the lowest balance. Repeat the process. While you may pay just a tad bit more in interest, using this method allows you to gain quick wins and momentum. So as long as you stay on track, you actually see your debt disappear one by one. If you need more info on how to use the debt snowball method, click here: Everything You Need to Know About the Debt Snowball Method.
5. Start a side-hustle
If you decide that cutting certain expenses via step 3 above does not work for your family, then the next thing you should do is bring in more income. What better way to do that than by starting a side-hustle! There are tons of ways to bring in more income. If you are searching for a few quick ways to do this, don’t fret! I have provided a few examples below:
- Sell stuff in your home. Do this monthly or even weekly via sites such as Facebook Marketplace, Craigslist, eBay or even consignment shops like Plato’s Closet.
- Offer your skills on freelance sites. Are you a graphic designer? If so, you may want to take a look at sites like Fiverr or Upwork.
- Tutor students in person or online. Consider teaching private piano or basketball lessons.
- Teach English online to students overseas. Sites like VIP Kid have received great reviews.
- Rent out your car or parking space. You may want to check out apps like Turo.
- Pressure wash driveways or parking lots. Talk to your neighbors or property managers about hiring you to do this job once or twice each quarter.
- Become a consultant. Are you an expert in some area? Maybe you know how to help people implement systems in their business. If so, then let people know what you do and charge for your expertise.
6. Ask for a raise
While you are still working outside of the home, talk to your supervisor about taking on one or two additional responsibilities in exchange for a raise. If you are an outstanding worker and have already been putting in the work, then explain to them how valuable you are to the company and that a raise would not only help you meet some of your personal goals but that it would also make you feel more valued as an employee.
7. Find motivation
Learn from other stay at home moms and dads either by listening to podcasts, watching YouTube videos or reading books. They will be able to provide a plethora of information to help you on your journey. In addition, you may want to subscribe to one or two of their email lists so that you can receive weekly inspiration directly to your inbox.
Final Thoughts
I hope that these steps help you turn your dream of being a stay at home mom or dad into a reality! I have personally followed these steps and at the time that I’m writing this, my husband and I are roughly a few months away from being consumer debt-free! We are working really hard, as it has turned to a point where it pains me to have my husband drop our toddler off at 6 am M-F to daycare. Yes, she’s usually the first kid there and one of the last to get picked up! As long as I continue to see progress, I am going to continue to work on this plan. We are so close to our stay at home mom goal and I know that the sooner you start the process, you will be one step closer to your goal as well! I’m rooting for you!
