Dreading going back to your old job? Here’s how to figure out how much you need to make
The scenario is all too common. You’re loving spending time with your little babe. The thought of going back to your old job after your maternity leave is done? Not so much.
In fact, many moms describe that feeling as dread.
It makes sense. The arrival of a new life in your family changes everything: everyday habits, how much sleep you get, even what is really important to you. If you didn’t like your old job before, you’re only going to find you like it less. Way less.
The good news is there are other options for moms to align their lives with what is most important to them and still make ends meet.
First, though, you need to calculate how much you really need to make. It may not be as much as you think. There may also be other ways to make this income, like starting a business or side hustle.
To figure out this number, there are several questions to ask yourself and ways to crunch the number. In the end, there is no magic number. What is important to you and how much you need to make will be different for everyone.
1. What is your current budget and can you make ends meet?
Let’s start with how much your family is currently bringing in and how much are you spending. If you don’t know, now is a great time to figure that out and make a budget. The overall goal is to not spend more than you earn – switch to a barebones budget if you have to, focusing on meeting your core expenses.
Many families will have maternity and parental leave benefits, where they will receive a fixed amount if income over a certain period of time. Some will use some savings to help with the difference.
The question to really understand is: if you could replace this income and/or savings, could you continue with your current budget for another few years?
As an example, your spouse works fulltime and you are on maternity leave with a net income of $350/week. If you can currently ends meet – and willing to continue with this budget – you may need to earn a little over $1500/month after your maternity/paternity leave income ends.
The key of course is sticking to your budget.
2. What is your ideal, if modified, budget?
When you left your previous job to have a baby, chances are you cut back on expenses. Gone are the annual getaway vacations and dining out a couple times are week. Not only are you saving money, these luxuries are often harder to do with a little one in tow.
But what if you cut out your gym membership and you really want it back for your own mental and physical health. Perhaps you’d really like to seed an education fund for your child, as you know that you have time on your side to watch the savings grow. Or maybe you have cut out your savings altogether and you really want to put something aside over the next few years.
This is totally normal.
Make a list of these ideal expenses and their costs that you’d like to add back in. As an example:
Gym membership $50/month
Education savings $210/month (to receive the government matching grant)
Longterm savings $200/month
Other $100/month
Then total them up. In this example, the ideal expenses come to $560/month.
Add this figure to your current income from step one. $1500 current income + $560 ideal = $1860/month.
You may find that in order to avoid going back to your old job, you can launch a business or side hustle which brings in $2060/month.
3. What would your salary be minus the expenses?
If you do go back to your old job, or another one like it, it is important to look at what you’ll bring in but also the associated expenses that will crop up.
Some of the expenses were there when you worked before, like the costs of commuting and work clothing (do you fit into your old clothes?). Some may be new.
If you work a 9-5 job, you will need some form of childcare for your little one. While there are many childcare options out there, it is typical to expect $500-$2000/month for care.
You may also find that between getting your family out the door in the morning, working a full day, prepping dinner, cleaning up and getting your kids to bed – it’s exhausting just thinking about it – you will have no time to clean your house. Or meal plan. So you may need to include expenses like these in your calculation.
Let’s do that math. Look at what your income after tax would be on a monthly basis. If you make $50,000 before tax, you may end up with $3333/month after tax.
Now list the monthly expenses you will incur:
$1200 childcare
$300 commuting costs
$100 work clothing
$80 lunch out with colleagues once a week
$250 housecleaning
Total Expenses: $1930/month
Take your income and minus the expenses: $3333 – $1930 = $1403.
You would be adding $1403/month in net income to your family budget.
Really? Yes, a lot less than you may think. Looking at other options, like starting a business or side hustle, is worth exploring.
It’s more than just the numbers
It is important to note there are more considerations than simply crunching the numbers.
Here are other aspects to factor in:
The social and emotional impact of each option – perhaps you really need to go back to work for your own mental health. Or will doing the 9-5 plus having a family and household drive you crazy? For some, starting a business and the emotional rollercoaster may be too much to handle. Be real with yourself.
Your career – if you have been on a career path up until now, how important is your career to you? Can you get back in later on?
Stability of other income (ex. spouse) – if your other family income is volatile or at risk, this may change your choice on returning to work.
How fast you need to make income – there are no guarantees when you start a business or side hustle how much you’ll make and even when. The more time you have on your side, the better.
Tax implications – if you start your own business or side hustle, you should factor in a minimum of 15% for taxes. This varies a lot depending on your tax bracket and where you live. Look into it and plan for it.
Anything else that is important to you.
Where to go from here
My advice is threefold.
Look at all the options. Could starting a business or side hustle give you the income and flexibility needed? Are there part time, telework or other options for working? If you switch employers, how much of a difference would this make?
Treat this as a family decision. If you’re married or in a relationship, it’s not all about you having to make it work. There could be solutions involving your partner. Look at everything together.
Find joy in whatever you do. We only have one life to live. We want our children to be happy, and it starts with us setting the example.