How Much Are You Really Earning?

By Christy Dunlop
www.budgetmama.com home

 

If you are contemplating becoming a stay at home Mom, and are worried about how you will make it without your income, you may be surprised to find out how much money your really taking home.

Let’s look at an example of a salary of $30,000.

Salary $30,000

Federal Taxes (15%) 4,500

State Taxes (7%) 2,100

FICA and Medicare (8%) 2,400

Daycare 6,250

Commuting 2.500

Work clothes ($100/month) 1,200

Meals out 1,000

Other (office gifts, convenience items etc.) 500

Actual Take Home Pay $9,550

 

To calculate the hourly wage that you actually take home: take actual take home pay of $9,550 divide by 52 weeks in a year divided by 40 hours per week. In our example, this is only $4.59 an hour. When deciding whether or not you can afford to stay home, make sure to consider the cost of working.