Last week I wrote about housewives working for pennies. This week I'm going to look at that topic from a slightly different angle. I recently read an interesting article by Jonathon at My Money Blog about taxes and how much you really earn while working as an employee, or even self-employed.
Now what do taxes have to do with being frugal? When you, as a housewife, save $1, you're really saving one dollar. But when you as a working wife make $1, you're only making $0.70- .90. And what about the costs of commuting, dressing finely for the office, lunches out, daycare, etc.? That further reduces your "earnings".
If you, like me, quit your job to be a housewife or stay-at-home mom (more tax savings with kids!), you have the wonderful privilege of getting out of this spending-earning cycle.
The question becomes, as 'just' a housewife, how much can you save? Could you actually save more than you were making at work? This has been my little experiment since I got married in March, and I really believe it is feasible. There are many ways to save, especially when you aren't working a job and have some extra time on your hands. What about the following areas:
I think there is a lot of room for savings there! Armed with a few (or many) skills, you could be spending pennies on the dollar for the above items AND no need to pay the 6% (Michigan) sales tax when you make things yourself. :)
*In certain situations (earning too little for the size of a family, for example) taxation can actually reverse itself and result in a tax credit instead of payment.