How Smart Stay-at-Home Moms Make a Budget That Really Works
Budgeting can seem like a challenge if you’re only working with one income. But having a budget is so important! Here’s how to make a budget as a stay-at-home mom to help you manage your family’s finances and reach your money goals!
I opened my online banking account, and nearly passed out when I saw the red numbers. I had overdrawn my checking account.
An automatic payment I had forgotten about came out of my account before my paycheck went it, and it caused an overdraft. To top it all off, I worked at a small, hometown bank where everyone was friends with everyone else.
I was so embarrassed to walk into the bookkeeper’s office that day. As a Christian, bank employee, and (supposedly) responsible adult, I felt that I owed her an apology.
At the time, I dreamed of someday being a stay-at-home mom but knew that I’d need to make some changes to get there. Staying at home meant living with less money, and I had to figure out a plan to make it happen.
That’s when I knew I needed a budget.
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Can You Afford to Be a Stay-at-Home Mom?
Many women ask themselves, “Can I afford to be a stay-at-home mom?” Two incomes seem necessary for a family to survive in the modern world.
When you take the time to sit down and make a budget, you will have a very clear picture of what money is coming in, and what is going out.
Knowing these real numbers can give you the courage and confidence to make the leap into being a stay-at-home mom.
5 Reasons Stay-at-Home Moms Need a Budget
If you’re a stay-at-home mom, or even if you work outside the home part-time, having a budget is a key to financial success.
Here are five important reasons why:
You Have Less Money Coming In
This one seems pretty obvious, but it’s worth mentioning. When you’re a stay-at-home mom, you have less money coming in than you did when you were working full-time.
For some families, this means living on one income for the first time ever. It can be a big adjustment to make, but it’s doable with careful planning and budgeting.
It also means some level of sacrifice. Your family may not always have the latest gadgets, take the nicest vacations or drive the fanciest cars. But most stay-at-home moms realize that the trade-off is totally worth it!
You Have More Expenses Than You Think
Even though you’re not working outside the home, you still have expenses. In fact, you might have more expenses than you did when you were working.
You have to budget for things like groceries (you’ll be preparing more meals at home), activities for your kids, and even your own self-care. All of these things add up, so it’s important to be aware of them when you’re making your budget.
You Need to Save for the Future
Just because you’re not working doesn’t mean you shouldn’t be saving for the future. Whether you want to stay at home with your kids for a few years or forever, it’s important to have a savings account that you can tap into when you need it.
You never know when an unexpected expense or emergency will come up, so it’s always good to have some money set aside.
When you have a budget, you will be able to see at a glance how much money you have saved for the future. You may also realize there is more you could be doing every month to boost your savings.
You Need To Pay Off Debt
If you have debt, it’s important to make a plan to pay it off. This can be especially difficult if you’re living on one income, but it’s not impossible.
There are a lot of different ways to approach debt, so find a method that works for you and stick to it.
Having a budget will help you narrow down areas where you can save. Extra money saved can be applied to your debt.
For more info about paying off debt, check out DaveRamsey.com.
You Want to Give Your Kids a Good Future
If you’re like most parents, you want to give your kids a bright future. Part of that is teaching them about money and how to be responsible for it.
One way to do that is to set a good example by being mindful of your own finances and living within your means.
Making a budget is a great way to do that.
Creating a Budget for Stay-at-Home Moms
Now that we’ve gone over some of the reasons why stay-at-home moms need a budget, let’s talk about how to make one. Don’t let this overwhelm you! At the end of this post, I’m sharing my favorite budget method that makes budget simple and almost fun!
Here is a basic breakdown of making a budget:
Figure Out How Much Money You Have Coming In
The first step in creating a budget is to figure out how much money you have coming in. This is your “income.”
For stay-at-home moms, this might be your husband’s income, any money you make from side hustles, or even child support or alimony.
Figure Out How Much Money You Have Going Out
Once you know how much money you have coming in, you need to figure out how much money you have going out. These are your “expenses.”
Your expenses include things like:
- mortgage or rent
- car payments
- insurance
- groceries
- utilities
- subscriptions
- debt payments
Don’t forget expenses that aren’t regular, like birthdays, Christmas presents, taxes, etc.
Once you have a good idea of your income and expenses, you can start to figure out where you can cut back.
For example, maybe you can cook more meals at home to save on groceries, or cancel a few subscriptions that you don’t really use.
Making small changes like this can free up a lot of money in your budget that you can use to save for the future or pay off debt.
The goal is to have more money coming in than going out each month. This is called “being in the black.”
If you’re in the red, meaning you have more money going out than coming in, don’t worry! The important thing is that you’re aware of it and are working on a plan to get yourself into the black.
My Favorite Budgeting Method
I personally love and use a zero-dollar budgeting method with YNAB (You Need a Budget.) This budgeting method is so simple and easy to use, and it really works!
YNAB is a website and app that makes budgeting so simple. You just input the numbers, and it does all the work for you! And, it connects to your bank account, so new transactions are automatically imported for you to put in the correct categories.
YNAB has amazing customer service, as well as plenty of advice and tips to help you reach your money goals. Right now our family is working to pay off our debt. Our ultimate goal is to be debt-free and build our dream house.
We’re able to carefully track our progress, see where our money is going and put it to work for us. I love challenging myself to pay more towards my debt each month, getting a little close with each dollar I add!
YNAB also allows you to set a goal for things like Christmas or vacation, then reminds you each month how much you need to budget to reach your goal.
I have the app on my phone, so my budget is never far from reach. (I’m a total nerd that way.)
Did I mention you can try You Need a Budget totally free for 34 days? Yep, you have plenty of time to get into the groove of budgeting before you decide if it’s right for you. I’ve been using it since 2018, and I’ve never found anything better.
Sign up for your free trial here.
Get Peace of Mind from Your Budget
As a stay-at-home mom, it can be easy to feel like you don’t need a budget. After all, you’re not bringing in any income, so what do you need to budget for? However, it’s even more important to know every penny that comes in and goes out.
A budget gives you a clear picture of your finances and helps you make intentional decisions about your money.
When you have a handle on your finances, it can help reduce stress and give you peace of mind. And that’s something we all need as moms!
Are you ready to start budgeting? Download the stay-at-home mom budget worksheet and get started!
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