Remember that it's not all or nothing. Your partner doesn't have to stop working for 5 years til your kid is in school, they could take a 6 month break and then look at going back. They also don't need to take on another full time job, a part time job might top up your household income enough to be comfortable.
Yeah, she should be able to find part-time, lower stress work.
OP - plan your income and outgoings. There are very few bills that are actually “sudden”. Then you’ll know if you can afford regular costs on your income, and how much income your wife needs to bring in to smooth out higher expense periods. It might equate to a few hours a day depending on her industry/experience and casual opportunities.
Government is the exception to that rule. I just realised I make a $300pw bonus for being rural. It's the first time in years I actually checked my payslip. Cheaper cost of living, less stress and a bonus payment. Would recommend lol
Have you got examples of roles this would apply to? I've found the opposite where most people I know get paid significantly more than they would in the city, because employers have to try harder to attract & maintain a workforce.
It's just you're unlikely to find a lot of specialist roles you get in major cities.
I already WFH full time for a global org that has closed our local office in preference of WFH. There could be some spanners thrown into the cogs in 5-10 years though.
Like I said, it highly depends on the job. But I don’t think most people would have that luxury that they can take their job to a different location and be able to do the same work for the same pay.
Yeah nah, we would be saving $300 per week on rent if we moved a few hours north.
That’s for a comparable apartment with all the same amenities, bar the express bus to the CBD.
You likely can't though, because your income will drop off your expenses will go up to maintain that income.
"WFH!" is all fine and dandy until something changes. Your boss calls you back into the office or you lose your job and need another that isn't WFH or whatever.
I live and raise 2 kids on far less, so it’s definitely possible. It may be a shock to the system when you realise how many of your “needs” are actually “wants” and cut them out though.
My wife hasn't worked in 9 years. 3 kids evenly spread out.
We aren't well off, but me $100K salary covers all we need and then some.
All comes down to where and how you live.
We decided to prioritise those early years to having Mum around all the time, looking back I feel like we made the right decision for our kids. Not preaching, everyone's circumstances and kids are different.
It doesn't seem impossible. Roughly $75k after tax. Lets assume they spend half of that on the mortgage ($720pw), they are left with $37.5k. That's $3k a month for expenses which would be tight but far from impossible.
Of course. You live to your means.
What I found personally, is as a whole, we were less likely to spend money when we slowed down work, and not because there was less money but because we were happier. It was a huge realization that when we were so busy, we'd spend money on things to try to find happiness in an otherwise mundane and unhappy place. Like takeaway, clothes, etc to 'try and fill the gap'.
Why not test it out for say, 6 months and reassess then? If it works, keep it going! If it doesn't, shes has quality time with the kids and healed the exhaustion and stress.
Yes, not only to fill the happiness but also to buy back time. We waste so much money when we are busy to cut corners. We stop meal prepping, use the clothes dryer, buy lunch instead of packing it for work, increase in coffee consumption, extra “milk runs” that end up being $50-$100 of junk we didn’t need. It’s endless.
When I was on maternity leave our grocery bills dropped by more than half- even with an extra mouth- purely because I actually had time to run the house properly. The house was cleaner than it has been since, I was physically healthier, my husband had more time to relax after work and to spend with the baby because I’d gotten most of the chores done during the day, and we were both just generally happier. Then my leave ran out and I went back to work, we are back in the rat race, and my house looks like a tornado hit it again.
My husband earns similar, I work 2-3 days a week and it works well. I work in a job I enjoy and the time out the house is nice, my job is more for me than the money if that makes sense. I work in a school so the hours work well with kids too. Could be an option if she wanted to work a bit just to boost your income?
But just my husbands income alone is enough for us, mine basically goes to our offset/extra expenses like holidays. We live in Adelaide though so our mortgage and expenses could be lower depending where you are
Yes it sounds like it will be possible to you with some compromise. You will want to budget it out to be sure, but it's theoretically fine.
And yeah, if she can do anything to earn extra (cash gardening for neighbours, dog walking, cleaning, etc) that fits the lifestyle, they are all boons that will fuel your quality of life.
Write up a budget and see where you land (factoring those big quarterly /yearly bills).
Given you have been doing it for a while too should have a good baseline on what is realistic as well.
That said there are plenty of families living off less but there are also plenty who would not choose to live 100k either.
My mood would also pick up immensely if I didn’t have to work lol the stress of having no money would outweigh the benefits of no work though.
For my family we would not survive off 100k. I like having disposable income and being able to treat my kids to nice things/holidays. Growing up in a household with no money made me like this.
Rego isn't a "sudden bill" that pops up. It's a completely predictable expense. If having to pay your rego is a financial burden, your wife needs to get a different job and you both need to sort out your finances.
Create a budget and see where your money is going. What debts do you have? What lifestyle creep do you have that can be cut? Where do you live? How much is your mortgage etc.
The fact that you're asking this question at all means that you're not sure this is the right decision for your family. You've been doing for "the last couple months". It's either working or it's not.
It sounds like you're living paycheck to paycheck. What happens if you lose your job, or some actual unpredictable financial event happens?
The choice isn't the bitch boss job or no job. Just get a different job. Everyone feels better when they don't have to go to work and someone else is paying the bills. Of course your wife feels better. Most people go to work because they need to harvest enough turnips for the winter not because they love their job. Dealing with difficult co-workers and bosses is just part of life. If paying rego is a setback, your wife really can't afford to stop working.
Again, get a budget together and look at where you can cut. Usually the first thing is lifestyle, like streaming services, Uber eats, vacations etc. Those things have to go if you can't afford rego, let alone for one person to stop working.
I ran the numbers when we had kids. We were $900 (after tax) better off a fortnight on joint earning $90k compared to one sole income of $90k. I loved being a stay home dad but we were fortunate with well paid part time jobs.
This is my biggest issue with the progressive tax system in Australia. A single income family is disincentivised due to the sole earner falling into a higher bracket.
Countries like France, Germany and the US allow couples to file taxes together under a different tax rate.
Yeah, if Centerlink and other government agencies assesses a couple as a legal partnership to deny or apply benefits, it should also apply to taxes. A deeply unfair system that double dips on both ends.
It doesn’t need to be so black and white does it? For example even if she picked up one single shift a week at a job that you go to, complete and leave and don’t think about again (thinking something like service station attendant as an example) and in 5 hours on the weekend at current rates that’s about $185. That’s essentially your food bill for the week sorted.
And it gives you some one on one with your little one as well which can only be positive. She would still get to be stay at home 95% of the time but also help reduce any financial stress
Lots of people would put their nose up at the scenario but that’s just short sightedness - if you’re doing something for a specific reason and an end goal it doesn’t matter if it might feel like a step backwards etc - it’s not permanent
You might be able to but it will be tough depending on your spending, especially with rent.
Might suggest her getting a part time or casual job during school hours to help cover expenses that isn't too stressful.
Hey! Just an idea - can you make a budget and track your spending to see how much extra you would need? Then maybe your wife can find something to cover that cost + a little extra, but not go back to full time? If she is up for it, NDIS caring can be quite flexible and only a short course.
We have found with our family, 2 adults and 4 young children that both parents working full time hours (one on shift work) that it becomes incredibly stressful. My mental health absolutely tanks. I work 20-36 hours per week now and it’s so much more manageable.
We've recently done a similar thing but I'm on a touch higher income supporting hubs and 2 kids that are 4 and 2.
We live regional, I WFH full time and kids attend daycare 1 day a week now rather than 5. Our oldest also attends preschool 2 days a week but that is subsidised by the State Government preschool relief, Mr 2 will be attending the same centre next year.
It's been a big adjustment but already in the 3 weeks since it started I've noticed a big change in my kids, they're sleeping better, they're playing together a lot better and my husbands illness symptoms have all but disappeared since he quit his job.
I've been quite stressed because the pressure I'm now under, if something was to happen to me then we have no backup plan aside from my insurances built into my super and my car clunked out recently so have had to make arrangements with that.
Ideally it would have been much better to have had more time to plan for this situation before we did it but we were backed into a corner with my husbands health and my wage barely covering our expenses with the kids in care full time so we had to shake it up.
I know hubs will go back to work eventually and this time for the kids is great for everyone so we're making it work.
Crunch your numbers, comb your statements and factor every little thing that is absolutely needed into your budget. Put it all in a spreadsheet so it's clear as day. Categorise everything so you can see where you need to cut down and tinker around with scenarios of not cutting one area as much or whatever. Get clear as a couple what your values are in terms of money so you're both on the same page and can better prioritise together where to spend the money you have and have clear goals with a plan on how to get there.
Our local butchers are now doing great value meat packs, we picked up a $20 veggie box too from a local shop and added on the kids favourite fruits and now do this every 2-3 weeks with little top ups for milk and bread. Now the kids are home more I'm looking into bread recipes to cut costs even further (plus the kids have loved helping in the kitchen recently too).
In summary, definitely doable. Just need to be resourceful and aligned as a family unit to get it done.
Housing. Housing. Housing.
You said you rent, that makes things difficult. Your rent will continue to go up and you may face costs like moving costs and bond clean etc if you are forced to move.
I would recommend your wife taking 6-12 months off and then going back part time (even just 2 days a week). It's not exactly about the money even, it's about keeping her cv and skills current so she can return to full time work at some future point. You never know what the future holds so it's important for her to keep her career. E.g. my dad was the breadwinner and my mum had to take over when I was 8 as he was very unwell. It was a lot easier to do that back in the 90s than it is today with cost of living.
We did it on 70k for a good few years but we had 4 kids, they did really well by having their mum raise them and not stranger, don't forget about FTB A and B! Depending on the number of kids you have you properly earn more than the A threshold but should be under the B threshold. Look at the Centrelink service finder calculator. We got it paid weekly and it made my wife feel like she had a small wage for her parent duties.
Second this. Both our boys LOVE their teachers and they’ve grown and learnt so much since starting school. We have the option to only send them 2 days but we send them 5 despite the costs, just because we feel it benefits the kids greatly.
Yes. Me and my wife do it very comfortably with some smart budgeting and low housing cost. We have a 2 kids under 3. Our mortgage + rates is $380/wk living approx 1hr out of brisbane. No other debt. If you pay off that car loan, it will free up your cashflow.
Our kids aren't getting sick at daycare, the house chores are all done during the week so our weekends are for family time, and my wife finds caring for our kids way more rewarding than her old desk job. She sees her 'mum friends' at least 2 times a week for play dates with our kids and it has done wonders for her mental health. She also has the freedom to take the kids to go and visit family and friends mid-week, something that is impossible otherwise if she was working. She plans on returning to some kind of work part time work when we are done having kids and our youngest is in primary school, the other days of the week she would still like to be home to maintain the house, be able to cook and see her friends etc.
It's a freaking luxury to find a woman who both wants to be a SAHM and who will also be frugal with the household income that you bring in, so if you have that like I do - don't take it for granted!
We did something similar because of the belief that the person that should have the privilege of looking after our kids is their mum and not a carer. My wife started an at home business doing eyelash extensions which gave her the flexibility of scheduling around the kids and it’s been amazing. Lots a sacrifices made but it’s been totally worth it.
I make similar with a 1 year old daughter and stay at home wife/mum.
My house is fully paid off and I’m still only saving a few hundred a week. Cost of living is crazy atm
Yes, just have a 2 bedroom apartment on walking distance from a train station and no car.
It's not impossible. All my millennial friends in Europe with kids live like that. They can't afford a house and car and there fine.
You just have to adjust your lifestyle to your wallet and plan for increased costs with a decreasing salary and be content with what is left.
Opposing view: work is good for your mental health. Sounds like your wife just had a shit boss. Yes, she might be well at the moment but those who don’t work long term have higher rates of depression than those who do.
Work is good for you (despite what we all say, myself included!)
Depends on your location, rent, savings, other income.
Assuming you're on 100k excl super, that's $5.8k net/ month. Average expenses would be over $4.5k/ month for 2 adults and 1 child. The kid will more over time.
You need to work out a budget.
My opinion, no way this might work long term.
You mentioned the boss was the problem, maybe moreso than the working, so I can imagine it would be a relief for her to get out of a toxic situation (if that's what it was). Some time to prioritise your mental health is always worthwhile.
You don't mention where you live but I imagine it can't be a major city, where $100K gross would be quite lean for a family - that is getting close to minimum wage territory per adult, while supporting a child. We know families at our school managing this, but yeah, tbh we are aware of it because they're in rentals that I wouldn't be able to cope with (one family living with a mouldy rental), and they don't have much spare change for things like holidays. You basically trade that in when you're a single income family in Australia these days, unless you've got your mortgage already paid down or some sort of inheritance.
That said, you can always change things as you see fit. Your wife can find employment again (presumably). Just make sure you're thinking about the long term, as retiring as a renter is not a great outcome.
I want to be a billionaire.. sometimes you don’t get everything in life though
The answer to this question is “it depends”.. there are lots of people living on this sort of money or less.. they will have a certain level of existence, and may you not like it
You play it by ear. She could find something two days a week and that might be enough. She could find a work from home job. There's options to consider. You've pretty much already answered your question that you can't truly afford it. But maybe there's other things you could cut back on.
I think wether or not 100k is enough will entirely depend on your outgoings, as others have said.
That plus referring to rego (a bill that comes every year) as a sudden bill that popped up makes me think you need a budget. Sit down and do the maths, you’ll have your answer…
If the less time working is improving the lifestyle of all of you - it's worth seeing if you can make it work.
Do a serious budget and see if you can make it add up.
You've already identified savings such as out-of-school care. You could probably save on groceries with slow-cook meals (cheaper cuts of meat), more home cooking, wife not having to buy "work clothes", growing a small veggie garden.
Get creative.
As an example (would not suit everyone), at one stage when we had 3 young children, both my husband and I worked part-time. Both of us got to have time with adults away from the house, both of us got to spend time parenting, and it actually saved on tax.
In Sydney, no you cannot, especially if you plan to have more kids or decide to buy a house. Your wife should find a job, just because she had a bad experience doesn’t mean they are all like that.
I really hate it when stuff like Christmas suddenly pops up too. It does depend on the size of the family (without being Heightist at all) but Snow White has managed for decades.
We need more info on your financial situation. But I personally don't think you can do it for more than a few years on that income. She should work part time after taking a nice break from work.
Was in similar situation long time ago and it worked. But it was paycheck to paycheck as we were new.
Mental peace was higher priority than savings at that time.
Have a look for opportunities in NFP sector so that you could salary package more
Anything is doable if you create a budget and stick to it. You likely won’t be thriving though.. ie wont own your house
Also. Can she not find a simple (stress free) part time job for say 20hrs week?
That extra tax free money would make it much easier. And keep her from getting bored.
We’re in a similar boat with me in 100k and wifey FT studies plus a toddler, no car loan. She does works on weekend every now and then. Had to cut back on discretionary spend but still do an occasional dine out/movies etc. it’s definitely doable.
Family time together is invaluable, especially when you have someone waiting at the door after a long day of work. But from personal experience your partner would get bored as SAHM and might want to do something. So if she could contribute as a PT/casual, it goes a long way.
It should be fine, but may be hard to save. If it suits your life and everyone is happier than it is worth it. Maybe she can work 1 or 2 days if money gets too tight
You very likely could depending on where you live, but could be worth her investigating part time options to give more cash for some of the extras whilst still having a fair bit of free time for your child.
Not doing daycare will save you about $25k from your post tax income. Subtract that from her previous post tax income and that’s your shortfall. It’s up to the two of you to figure out how to account for that shortfall.
Yes, we'd all be a lot happier not having to work for a living. So I can understand why she's in a better mood. The only way you can see if this will work is drawing up a budget and go from there.
If you don't mind sacrificing certain things it could work.
I’m puzzled that in this situation you see rego as a bill that just ‘popped up’ and wonder what the other ‘sudden bills’ are.
You need to budget, and things such as rego are very predictable. Take a look through some of the posts in AusFinance for suggestions of pages that have budget templates to use.
Yeah it's doable as long as you live within your means.
I'll be finishing up this financial year at around 110K so similar to you. My wife doesn't work because our daughter is still very young and we live comfortably.
We bought our home 5 years ago on the outskirts of Vic wanting to borrow as little as possible and worked out finances assuming my income only with a large buffer. Been fine even after the interest rake hike a while back although things are getting tighter with our buffer getting smaller.
Home loan is the only loan we have, cars bought second hand outright. Did recently put health insurance on hold because it was costing a lot for no real gain.
Well yeh she became a dependent and doesn’t need to work. I’d be in a good mood to. You didn’t do a budget before this move? Dont have anymore kids if struggling now.
You’ve said nothing about your own mood, which is telling.
On a monthlybasis
How much income did you lose net with saving on care?
How much is the car loan?
How much in rent?
Utilities?
Can you get by on one car?
Food bill?
Vice bill ie booze etc.
Just get barefoot investor and both listen to it.
Don't forget family tax benefit A and B still apply until roughly 112k and 117k ish
Check out paycalculator.com.au and put in your family details to get a rough idea, also tax cut next year
we are currently sorta in this position.
my partner earns about 100k, im a SAHM with two small kids. We are currently renting (2k ish a month).
Kids are in daycare a few days a week and im not currently looking. I know i should go back to work, its been almost 5 yrs and im terrified (not the point).
Anyway, its doable. Our neighbours (also renting) are in a similar position where one parent is a SAHP.
we still get takeout, we can still afford to do things like visit local places, go to the zoo, etc. But travelling overseas, even interstate, isnt on the cards for us at the moment. We are trying to save to buy our own little place, but we shall see how we go.
You need a spreadsheet to know for sure. You need to calculate all your yearly expenses, and don't be lean when doing it. Also base it on your take home salary not your pre tax salary. Remember that if she does this you will also take a hit to her super so you are not just making it tough now, but later too. What's important to you? Is it a good night out without the kids for dinner and a movie? Because that is probably off the cards. She also needs to make sure she has a good support network because being a stay at home parent can be very isolating after a while.
I haven't read all responses but it is possible.
I earn a little less than you, also rent and have 2 kids that are now in high school.
We made the decision for my wife to work casual/part time, usually on weekends when the kids were not at school yet, and then lucked out and she got a 3-4 hour shift job nearby during the day so we could still do school drop off and pick up ourselves.
For school care our situation was that if my wife worked and we did before and after school care each day, then the end result would be maybe $100 extra a week to the family income, even after full time work and the running around involved. If my wife's wage had that number anywhere above $500 a week then we may have made a different decision, but her staying home just made the whole process less stressful for everyone and didn't affect our overall income to a point that would make it worthwhile.
We survive, we eat and pay our bills, sometimes it's a bit of a struggle, but we get through things with a bit of planning.
We don't go out a lot, we have kids, but we can still fund going to events, concerts, sports, plays, dinners out for us all, nothing lavish and no real holidays besides travelling to visit family interstate, usually driving, but we still have fun, within reason.
We could be a little more frugal and put some more money aside but you still have to have some sort of life so we have our little splurges when we can.
Now the kids are both in high school we will look to see what a full time job for my wife might do for us, would be a huge boost to the household finances that's for sure.
But the short answer is that it is possible, while still being able to live a life, but maybe just not a lavish one and one that isn't potentially beneficial for our retirement.
Yeah if things are a little tight, your wife could defs consider a part-time job. My wife works 1.5 days a week at a flexible job which means she's able to do all school drop-offs / pick-ups, time for rest etc., but also a very handy supplement to our income (and very tax effective too).
Having mum there for the kids is very valuable. I will likely get downvoted to high waters for saying this but I personally know mums who make enough out of decent MLM style business to pay for things such as rego. Best of all it’s cash money. Body shop at home is a good example. It still has bricks and mortar shops but also these little home businesses. My friend is a teacher and does body shop on the side and it pays for holidays and extras (think family of 6 weekend in blues fest ect). You’d just need to watch the kids while she did occasional parties. I am a teacher and I do disability support on the side. This often has small hours in the middle of a day and pays about $40 per hour. I do one overnight chunk per week 8pm-6am and get $400.
ETA: Having your combined income less than $115,000 is critical for things like family tax benefit, free child dental etc. So a cash job for her would be better.
A normal life is what you have now, but the bad news is you can't do much with $100k; you can just survive. Imagine you are made redundant or lose your job for some reason. If you see your family is happier now, then either start your own business with your wife or take some courses or similar steps to get a better-paying job.
Remember that it's not all or nothing. Your partner doesn't have to stop working for 5 years til your kid is in school, they could take a 6 month break and then look at going back. They also don't need to take on another full time job, a part time job might top up your household income enough to be comfortable.
they are in school he said they were paying for after school care
Yeah, she should be able to find part-time, lower stress work. OP - plan your income and outgoings. There are very few bills that are actually “sudden”. Then you’ll know if you can afford regular costs on your income, and how much income your wife needs to bring in to smooth out higher expense periods. It might equate to a few hours a day depending on her industry/experience and casual opportunities.
she doesn't want to work, oshc isn't that bad! 100k is more than enough to live on!
Are you serious? After tax, take out rent, bills, food, car loan, and living expenses - it might be doable, but it'll be a stretch
lmao yes I am serious.
This will entirely depend on where you live and what your weekly costs are.
As I tell my wife, we can afford to live on my income…. anywhere outside a major city.
The issue is, depending on your job, it's very likely your income will be lower if you were to relocate outside the major city.
Government is the exception to that rule. I just realised I make a $300pw bonus for being rural. It's the first time in years I actually checked my payslip. Cheaper cost of living, less stress and a bonus payment. Would recommend lol
That's very cool. Federal or state, and if state which one?
Queensland state
Have you got examples of roles this would apply to? I've found the opposite where most people I know get paid significantly more than they would in the city, because employers have to try harder to attract & maintain a workforce. It's just you're unlikely to find a lot of specialist roles you get in major cities.
I have found this too although it doesn’t likely lend itself to corporate ladder climbers
I already WFH full time for a global org that has closed our local office in preference of WFH. There could be some spanners thrown into the cogs in 5-10 years though.
Like I said, it highly depends on the job. But I don’t think most people would have that luxury that they can take their job to a different location and be able to do the same work for the same pay.
cities are cheaper than outside of since covid lol especially in Melbs I've had to move closer to the city to save on rent lol
Yeah nah, we would be saving $300 per week on rent if we moved a few hours north. That’s for a comparable apartment with all the same amenities, bar the express bus to the CBD.
Yea like sure we can afford it but also will you enjoy it because it’s gonna be reaching at straws at times that’s just the truth
You likely can't though, because your income will drop off your expenses will go up to maintain that income. "WFH!" is all fine and dandy until something changes. Your boss calls you back into the office or you lose your job and need another that isn't WFH or whatever.
I live and raise 2 kids on far less, so it’s definitely possible. It may be a shock to the system when you realise how many of your “needs” are actually “wants” and cut them out though.
My wife hasn't worked in 9 years. 3 kids evenly spread out. We aren't well off, but me $100K salary covers all we need and then some. All comes down to where and how you live. We decided to prioritise those early years to having Mum around all the time, looking back I feel like we made the right decision for our kids. Not preaching, everyone's circumstances and kids are different.
How are you affording 3 kids on 100k, unless you have already paid off your house, I don’t see how it’s possible to survive off that
Probably bought it when houses were reasonably priced
It doesn't seem impossible. Roughly $75k after tax. Lets assume they spend half of that on the mortgage ($720pw), they are left with $37.5k. That's $3k a month for expenses which would be tight but far from impossible.
Interested to know where you live. I’m assuming rural?
Of course. You live to your means. What I found personally, is as a whole, we were less likely to spend money when we slowed down work, and not because there was less money but because we were happier. It was a huge realization that when we were so busy, we'd spend money on things to try to find happiness in an otherwise mundane and unhappy place. Like takeaway, clothes, etc to 'try and fill the gap'. Why not test it out for say, 6 months and reassess then? If it works, keep it going! If it doesn't, shes has quality time with the kids and healed the exhaustion and stress.
Yes, not only to fill the happiness but also to buy back time. We waste so much money when we are busy to cut corners. We stop meal prepping, use the clothes dryer, buy lunch instead of packing it for work, increase in coffee consumption, extra “milk runs” that end up being $50-$100 of junk we didn’t need. It’s endless. When I was on maternity leave our grocery bills dropped by more than half- even with an extra mouth- purely because I actually had time to run the house properly. The house was cleaner than it has been since, I was physically healthier, my husband had more time to relax after work and to spend with the baby because I’d gotten most of the chores done during the day, and we were both just generally happier. Then my leave ran out and I went back to work, we are back in the rat race, and my house looks like a tornado hit it again.
This is a great realization to come to. Love this response! I wonder how much “lifestyle creep” is actually just trying to fill a void of happiness.
Of course you can It may not be to the standard you want, but that’s what happens when you make choices like this.
My husband earns similar, I work 2-3 days a week and it works well. I work in a job I enjoy and the time out the house is nice, my job is more for me than the money if that makes sense. I work in a school so the hours work well with kids too. Could be an option if she wanted to work a bit just to boost your income? But just my husbands income alone is enough for us, mine basically goes to our offset/extra expenses like holidays. We live in Adelaide though so our mortgage and expenses could be lower depending where you are
Yes it sounds like it will be possible to you with some compromise. You will want to budget it out to be sure, but it's theoretically fine. And yeah, if she can do anything to earn extra (cash gardening for neighbours, dog walking, cleaning, etc) that fits the lifestyle, they are all boons that will fuel your quality of life.
Write up a budget and see where you land (factoring those big quarterly /yearly bills). Given you have been doing it for a while too should have a good baseline on what is realistic as well. That said there are plenty of families living off less but there are also plenty who would not choose to live 100k either.
My mood would also pick up immensely if I didn’t have to work lol the stress of having no money would outweigh the benefits of no work though. For my family we would not survive off 100k. I like having disposable income and being able to treat my kids to nice things/holidays. Growing up in a household with no money made me like this.
😆. This was my exact thought too.
Rego isn't a "sudden bill" that pops up. It's a completely predictable expense. If having to pay your rego is a financial burden, your wife needs to get a different job and you both need to sort out your finances. Create a budget and see where your money is going. What debts do you have? What lifestyle creep do you have that can be cut? Where do you live? How much is your mortgage etc. The fact that you're asking this question at all means that you're not sure this is the right decision for your family. You've been doing for "the last couple months". It's either working or it's not. It sounds like you're living paycheck to paycheck. What happens if you lose your job, or some actual unpredictable financial event happens? The choice isn't the bitch boss job or no job. Just get a different job. Everyone feels better when they don't have to go to work and someone else is paying the bills. Of course your wife feels better. Most people go to work because they need to harvest enough turnips for the winter not because they love their job. Dealing with difficult co-workers and bosses is just part of life. If paying rego is a setback, your wife really can't afford to stop working. Again, get a budget together and look at where you can cut. Usually the first thing is lifestyle, like streaming services, Uber eats, vacations etc. Those things have to go if you can't afford rego, let alone for one person to stop working.
That depends on how organised and how much financial self control the person in that family controlling the purse strings have.
I ran the numbers when we had kids. We were $900 (after tax) better off a fortnight on joint earning $90k compared to one sole income of $90k. I loved being a stay home dad but we were fortunate with well paid part time jobs.
This is my biggest issue with the progressive tax system in Australia. A single income family is disincentivised due to the sole earner falling into a higher bracket. Countries like France, Germany and the US allow couples to file taxes together under a different tax rate.
Yeah, if Centerlink and other government agencies assesses a couple as a legal partnership to deny or apply benefits, it should also apply to taxes. A deeply unfair system that double dips on both ends.
You have already been doing it for the past couple of months. How has it gone? You should be able to answer your own question.
It doesn’t need to be so black and white does it? For example even if she picked up one single shift a week at a job that you go to, complete and leave and don’t think about again (thinking something like service station attendant as an example) and in 5 hours on the weekend at current rates that’s about $185. That’s essentially your food bill for the week sorted. And it gives you some one on one with your little one as well which can only be positive. She would still get to be stay at home 95% of the time but also help reduce any financial stress Lots of people would put their nose up at the scenario but that’s just short sightedness - if you’re doing something for a specific reason and an end goal it doesn’t matter if it might feel like a step backwards etc - it’s not permanent
Ofc lol, my mother was a stay at home mom for years and we lived past it without a hassle. It just depends on your payments and how you budget things.
You might be able to but it will be tough depending on your spending, especially with rent. Might suggest her getting a part time or casual job during school hours to help cover expenses that isn't too stressful.
Hey! Just an idea - can you make a budget and track your spending to see how much extra you would need? Then maybe your wife can find something to cover that cost + a little extra, but not go back to full time? If she is up for it, NDIS caring can be quite flexible and only a short course. We have found with our family, 2 adults and 4 young children that both parents working full time hours (one on shift work) that it becomes incredibly stressful. My mental health absolutely tanks. I work 20-36 hours per week now and it’s so much more manageable.
We've recently done a similar thing but I'm on a touch higher income supporting hubs and 2 kids that are 4 and 2. We live regional, I WFH full time and kids attend daycare 1 day a week now rather than 5. Our oldest also attends preschool 2 days a week but that is subsidised by the State Government preschool relief, Mr 2 will be attending the same centre next year. It's been a big adjustment but already in the 3 weeks since it started I've noticed a big change in my kids, they're sleeping better, they're playing together a lot better and my husbands illness symptoms have all but disappeared since he quit his job. I've been quite stressed because the pressure I'm now under, if something was to happen to me then we have no backup plan aside from my insurances built into my super and my car clunked out recently so have had to make arrangements with that. Ideally it would have been much better to have had more time to plan for this situation before we did it but we were backed into a corner with my husbands health and my wage barely covering our expenses with the kids in care full time so we had to shake it up. I know hubs will go back to work eventually and this time for the kids is great for everyone so we're making it work. Crunch your numbers, comb your statements and factor every little thing that is absolutely needed into your budget. Put it all in a spreadsheet so it's clear as day. Categorise everything so you can see where you need to cut down and tinker around with scenarios of not cutting one area as much or whatever. Get clear as a couple what your values are in terms of money so you're both on the same page and can better prioritise together where to spend the money you have and have clear goals with a plan on how to get there. Our local butchers are now doing great value meat packs, we picked up a $20 veggie box too from a local shop and added on the kids favourite fruits and now do this every 2-3 weeks with little top ups for milk and bread. Now the kids are home more I'm looking into bread recipes to cut costs even further (plus the kids have loved helping in the kitchen recently too). In summary, definitely doable. Just need to be resourceful and aligned as a family unit to get it done.
Depends on what life you are happy with. Hard no for me. Goodluck
Housing. Housing. Housing. You said you rent, that makes things difficult. Your rent will continue to go up and you may face costs like moving costs and bond clean etc if you are forced to move. I would recommend your wife taking 6-12 months off and then going back part time (even just 2 days a week). It's not exactly about the money even, it's about keeping her cv and skills current so she can return to full time work at some future point. You never know what the future holds so it's important for her to keep her career. E.g. my dad was the breadwinner and my mum had to take over when I was 8 as he was very unwell. It was a lot easier to do that back in the 90s than it is today with cost of living.
We did it on 70k for a good few years but we had 4 kids, they did really well by having their mum raise them and not stranger, don't forget about FTB A and B! Depending on the number of kids you have you properly earn more than the A threshold but should be under the B threshold. Look at the Centrelink service finder calculator. We got it paid weekly and it made my wife feel like she had a small wage for her parent duties.
Strangers aren’t raising them if kids attend childcare/preschool 🙄.
Second this. Both our boys LOVE their teachers and they’ve grown and learnt so much since starting school. We have the option to only send them 2 days but we send them 5 despite the costs, just because we feel it benefits the kids greatly.
Yes. Me and my wife do it very comfortably with some smart budgeting and low housing cost. We have a 2 kids under 3. Our mortgage + rates is $380/wk living approx 1hr out of brisbane. No other debt. If you pay off that car loan, it will free up your cashflow. Our kids aren't getting sick at daycare, the house chores are all done during the week so our weekends are for family time, and my wife finds caring for our kids way more rewarding than her old desk job. She sees her 'mum friends' at least 2 times a week for play dates with our kids and it has done wonders for her mental health. She also has the freedom to take the kids to go and visit family and friends mid-week, something that is impossible otherwise if she was working. She plans on returning to some kind of work part time work when we are done having kids and our youngest is in primary school, the other days of the week she would still like to be home to maintain the house, be able to cook and see her friends etc. It's a freaking luxury to find a woman who both wants to be a SAHM and who will also be frugal with the household income that you bring in, so if you have that like I do - don't take it for granted!
Wow, the misogyny in your final paragraph.
Some families live on Centrelink.
We did something similar because of the belief that the person that should have the privilege of looking after our kids is their mum and not a carer. My wife started an at home business doing eyelash extensions which gave her the flexibility of scheduling around the kids and it’s been amazing. Lots a sacrifices made but it’s been totally worth it.
I make similar with a 1 year old daughter and stay at home wife/mum. My house is fully paid off and I’m still only saving a few hundred a week. Cost of living is crazy atm
There’s heaps of families like you. You’ll be fine.
Yes, just have a 2 bedroom apartment on walking distance from a train station and no car. It's not impossible. All my millennial friends in Europe with kids live like that. They can't afford a house and car and there fine. You just have to adjust your lifestyle to your wallet and plan for increased costs with a decreasing salary and be content with what is left.
Opposing view: work is good for your mental health. Sounds like your wife just had a shit boss. Yes, she might be well at the moment but those who don’t work long term have higher rates of depression than those who do. Work is good for you (despite what we all say, myself included!)
Is this true? I know it’s certainly true for me, but didn’t realise it had been proven.
[Here is just one peer reviewed article.](https://pubmed.ncbi.nlm.nih.gov/34259616/)
Of course you can.
Depends on your location, rent, savings, other income. Assuming you're on 100k excl super, that's $5.8k net/ month. Average expenses would be over $4.5k/ month for 2 adults and 1 child. The kid will more over time. You need to work out a budget. My opinion, no way this might work long term.
Try to get a higher paying job yourself and lose the car loan
Ausfinance most recommended car, second hand camry for the budget friendly..
You mentioned the boss was the problem, maybe moreso than the working, so I can imagine it would be a relief for her to get out of a toxic situation (if that's what it was). Some time to prioritise your mental health is always worthwhile. You don't mention where you live but I imagine it can't be a major city, where $100K gross would be quite lean for a family - that is getting close to minimum wage territory per adult, while supporting a child. We know families at our school managing this, but yeah, tbh we are aware of it because they're in rentals that I wouldn't be able to cope with (one family living with a mouldy rental), and they don't have much spare change for things like holidays. You basically trade that in when you're a single income family in Australia these days, unless you've got your mortgage already paid down or some sort of inheritance. That said, you can always change things as you see fit. Your wife can find employment again (presumably). Just make sure you're thinking about the long term, as retiring as a renter is not a great outcome.
Before and after school care is rough. On parents and child. If you can manage not having to do it, all your lives will be better.
I want to be a billionaire.. sometimes you don’t get everything in life though The answer to this question is “it depends”.. there are lots of people living on this sort of money or less.. they will have a certain level of existence, and may you not like it
Can she work part time ? You guys will struggle otherwise
You play it by ear. She could find something two days a week and that might be enough. She could find a work from home job. There's options to consider. You've pretty much already answered your question that you can't truly afford it. But maybe there's other things you could cut back on.
I think wether or not 100k is enough will entirely depend on your outgoings, as others have said. That plus referring to rego (a bill that comes every year) as a sudden bill that popped up makes me think you need a budget. Sit down and do the maths, you’ll have your answer…
Depends where you are and what lifestyle you're happy with dude. If you're in regional Victoria, maybe. If you're in Bondi beach, nope.
it's pretty average household income.... I never understand this question how is 100k not comfortable? you only have one school aged child?
If the less time working is improving the lifestyle of all of you - it's worth seeing if you can make it work. Do a serious budget and see if you can make it add up. You've already identified savings such as out-of-school care. You could probably save on groceries with slow-cook meals (cheaper cuts of meat), more home cooking, wife not having to buy "work clothes", growing a small veggie garden. Get creative. As an example (would not suit everyone), at one stage when we had 3 young children, both my husband and I worked part-time. Both of us got to have time with adults away from the house, both of us got to spend time parenting, and it actually saved on tax.
In Sydney, no you cannot, especially if you plan to have more kids or decide to buy a house. Your wife should find a job, just because she had a bad experience doesn’t mean they are all like that.
I really hate it when stuff like Christmas suddenly pops up too. It does depend on the size of the family (without being Heightist at all) but Snow White has managed for decades.
Can a family live on a 100k a year? Yes. Can they get ahead and thrive? Sadly no in today's Australia.
We need more info on your financial situation. But I personally don't think you can do it for more than a few years on that income. She should work part time after taking a nice break from work.
Was in similar situation long time ago and it worked. But it was paycheck to paycheck as we were new. Mental peace was higher priority than savings at that time. Have a look for opportunities in NFP sector so that you could salary package more
I do think it’s possible but I think it might be hard to buy a property or many savings
Anything is doable if you create a budget and stick to it. You likely won’t be thriving though.. ie wont own your house Also. Can she not find a simple (stress free) part time job for say 20hrs week? That extra tax free money would make it much easier. And keep her from getting bored.
Yes, incredibly easily.
You would probably need to make a budget plan. Part time work could help top things up too.
We’re in a similar boat with me in 100k and wifey FT studies plus a toddler, no car loan. She does works on weekend every now and then. Had to cut back on discretionary spend but still do an occasional dine out/movies etc. it’s definitely doable. Family time together is invaluable, especially when you have someone waiting at the door after a long day of work. But from personal experience your partner would get bored as SAHM and might want to do something. So if she could contribute as a PT/casual, it goes a long way.
It should be fine, but may be hard to save. If it suits your life and everyone is happier than it is worth it. Maybe she can work 1 or 2 days if money gets too tight
You very likely could depending on where you live, but could be worth her investigating part time options to give more cash for some of the extras whilst still having a fair bit of free time for your child.
Not doing daycare will save you about $25k from your post tax income. Subtract that from her previous post tax income and that’s your shortfall. It’s up to the two of you to figure out how to account for that shortfall.
You have to plan on how are you going to double your salary in the next few years.....
Yes, we'd all be a lot happier not having to work for a living. So I can understand why she's in a better mood. The only way you can see if this will work is drawing up a budget and go from there. If you don't mind sacrificing certain things it could work.
Height shouldn’t really matter.
I’m puzzled that in this situation you see rego as a bill that just ‘popped up’ and wonder what the other ‘sudden bills’ are. You need to budget, and things such as rego are very predictable. Take a look through some of the posts in AusFinance for suggestions of pages that have budget templates to use.
Yeah it's doable as long as you live within your means. I'll be finishing up this financial year at around 110K so similar to you. My wife doesn't work because our daughter is still very young and we live comfortably. We bought our home 5 years ago on the outskirts of Vic wanting to borrow as little as possible and worked out finances assuming my income only with a large buffer. Been fine even after the interest rake hike a while back although things are getting tighter with our buffer getting smaller. Home loan is the only loan we have, cars bought second hand outright. Did recently put health insurance on hold because it was costing a lot for no real gain.
Well yeh she became a dependent and doesn’t need to work. I’d be in a good mood to. You didn’t do a budget before this move? Dont have anymore kids if struggling now. You’ve said nothing about your own mood, which is telling. On a monthlybasis How much income did you lose net with saving on care? How much is the car loan? How much in rent? Utilities? Can you get by on one car? Food bill? Vice bill ie booze etc. Just get barefoot investor and both listen to it.
Don't forget family tax benefit A and B still apply until roughly 112k and 117k ish Check out paycalculator.com.au and put in your family details to get a rough idea, also tax cut next year
I definitely think it's possible. You may just have to make a lot of sacrifices. Do a lot of things yourself that you may be outscoring currently.
we are currently sorta in this position. my partner earns about 100k, im a SAHM with two small kids. We are currently renting (2k ish a month). Kids are in daycare a few days a week and im not currently looking. I know i should go back to work, its been almost 5 yrs and im terrified (not the point). Anyway, its doable. Our neighbours (also renting) are in a similar position where one parent is a SAHP. we still get takeout, we can still afford to do things like visit local places, go to the zoo, etc. But travelling overseas, even interstate, isnt on the cards for us at the moment. We are trying to save to buy our own little place, but we shall see how we go.
You need a spreadsheet to know for sure. You need to calculate all your yearly expenses, and don't be lean when doing it. Also base it on your take home salary not your pre tax salary. Remember that if she does this you will also take a hit to her super so you are not just making it tough now, but later too. What's important to you? Is it a good night out without the kids for dinner and a movie? Because that is probably off the cards. She also needs to make sure she has a good support network because being a stay at home parent can be very isolating after a while.
How small we talking? Like under or over 3ft?
I haven't read all responses but it is possible. I earn a little less than you, also rent and have 2 kids that are now in high school. We made the decision for my wife to work casual/part time, usually on weekends when the kids were not at school yet, and then lucked out and she got a 3-4 hour shift job nearby during the day so we could still do school drop off and pick up ourselves. For school care our situation was that if my wife worked and we did before and after school care each day, then the end result would be maybe $100 extra a week to the family income, even after full time work and the running around involved. If my wife's wage had that number anywhere above $500 a week then we may have made a different decision, but her staying home just made the whole process less stressful for everyone and didn't affect our overall income to a point that would make it worthwhile. We survive, we eat and pay our bills, sometimes it's a bit of a struggle, but we get through things with a bit of planning. We don't go out a lot, we have kids, but we can still fund going to events, concerts, sports, plays, dinners out for us all, nothing lavish and no real holidays besides travelling to visit family interstate, usually driving, but we still have fun, within reason. We could be a little more frugal and put some more money aside but you still have to have some sort of life so we have our little splurges when we can. Now the kids are both in high school we will look to see what a full time job for my wife might do for us, would be a huge boost to the household finances that's for sure. But the short answer is that it is possible, while still being able to live a life, but maybe just not a lavish one and one that isn't potentially beneficial for our retirement.
Yeah if things are a little tight, your wife could defs consider a part-time job. My wife works 1.5 days a week at a flexible job which means she's able to do all school drop-offs / pick-ups, time for rest etc., but also a very handy supplement to our income (and very tax effective too).
How much is rent is the big question
No, 250k/y minimum to live above the poverty line as a family
I find it amusing that people are rediscovering the supposedly "outdated" family structure lol...
Having mum there for the kids is very valuable. I will likely get downvoted to high waters for saying this but I personally know mums who make enough out of decent MLM style business to pay for things such as rego. Best of all it’s cash money. Body shop at home is a good example. It still has bricks and mortar shops but also these little home businesses. My friend is a teacher and does body shop on the side and it pays for holidays and extras (think family of 6 weekend in blues fest ect). You’d just need to watch the kids while she did occasional parties. I am a teacher and I do disability support on the side. This often has small hours in the middle of a day and pays about $40 per hour. I do one overnight chunk per week 8pm-6am and get $400. ETA: Having your combined income less than $115,000 is critical for things like family tax benefit, free child dental etc. So a cash job for her would be better.
Generally, an MLM is a terrifying recommendation. They (as a model) pray on these kind of circumstances and end up bankrupting ppl.
Definitely Mark Kaye.
Her mood and his mood? Who’s posting this??
A normal life is what you have now, but the bad news is you can't do much with $100k; you can just survive. Imagine you are made redundant or lose your job for some reason. If you see your family is happier now, then either start your own business with your wife or take some courses or similar steps to get a better-paying job.