Many women dream of being able to stay home with their children rather than work outside the home and outsource their care. The growing popularity of homeschooling has only made this idea more enticing to some mothers.
Financially, being a stay-at-home mom usually calls for some smart strategizing.
I asked financial expert and Ramsey personality Jade Warshaw for her advice for moms who want to stay at home and still allow their families to thrive financially. Here’s what she said.
Jade Warshaw, financial expert and Ramsey personality. Courtesy of Ramsey Solutions
The Epoch Times: You’ve shared publicly that you paid off $460,000 in debt. How did you do it?
Jade Warshaw: In 2008, we realized we had to draw a line in the sand and deal with our six-figure debt. We started listening to “The Ramsey Show” and followed the “baby steps” to become debt-free. This meant not caring about what other people thought, and doing whatever it took to dig our way out.
The Epoch Times: What have you found to be the greatest benefits of living debt-free?
Ms. Warshaw: Knowing that I don’t owe anything to anyone. I’m also able to help people every day, and walk alongside them on their debt-free journey, because I’ve been there. Being able to provide hope in such a toxic money culture is the reason I live the way I do.
The Epoch Times: Many mothers dream of being able to stay at home with their children. Some perceive the world to be set up to require two incomes to manage family life. Do you believe it’s possible in this day and age for families to thrive financially if one parent stays home?
Ms. Warshaw: Absolutely, but life is going to look different. You’re going to have to change a lot of things about your life that revolve around money. Look at every area of the budget and find ways to cut costs. Things like insurance, cutting back on luxuries, downsizing or refinancing your home, or selling a car. You’re going to be preparing more meals at home and cutting back on things like entertainment and vacations. I tell people to really think about being content and not be pressured by what society thinks you should do. Mom-guilt is real no matter what you decide to do.
The Epoch Times: What is the first thing a couple should do if they aim to shift from a dual-income lifestyle to a single-income one?
Ms. Warshaw: This is not a sexy date night. But after the kids are in bed, the dishes are done, the laundry is folded, and you’ve got some one-on-one time, you’ve got to sit down face-to-face and talk about the budget. To win, you’ve got to have a game plan. I don’t care if it’s an old-fashioned legal pad, an Excel spreadsheet, or our free EveryDollar budget app—you’ve got to visualize how you’re going to swing this thing. You can’t just hope it all works out. Trust me, it won’t. List your income. List your expenses. Subtract your expenses from your income to find out how much margin you have. That’s how you determine your lifestyle and how it has to change.
The Epoch Times: What are some strategies you’d encourage families to consider to be able to succeed financially while one parent stays at home with their children?
Ms. Warshaw: First, remember this is a season. You’re doing what’s right for your family right now. It’s not forever. The budget is going to be tight. I don’t need to tell you that the price of everything is through the roof. You have to commit to a budget and stay on it. Every dollar has got to have a job. And I always encourage people to look for side hustles: things you can do at home to bring in extra money, even if it’s just grocery money.
The Epoch Times: What are the most common mistakes you see families make when it comes to managing their money?
Ms. Warshaw: We live in a toxic money culture. Debt has been normalized. We’ve got to have it now. So I don’t think it’s so much about “mistakes” people make as it is falling into the mindset that broke is normal. Some of the decisions people make, like buying new cars with outrageous car payments, actually rob families of their future. You’ve got to stop being normal because normal sucks. Stop believing things like “you can’t go to college without borrowing money” and “you’re always going to have a car payment.” Reject those things. Have a plan to increase your income, and make a plan for your money.
The Epoch Times: What do you believe are the most important things to do in the long run to become financially free?
Ms. Warshaw: It’s simple to say and hard to do. You’ve got to stop borrowing money. Forever. Get out of debt and stay out of debt. Get on a budget and live on a budget. These things will change your money mindset, and you’ll realize doing these things doesn’t confine your money; it defines it.
