Freelance vs Physio
Hi all
Just got these wise words from Martin Hawes about the extra work question:
Steph
Thank goodness Matt got rid of those bought lunches. Think of it this way: $8 per day is $40 per week, $168 per month, or around $2,000 each year. If you saved that money at 5% interest, in 30 years you would have almost $133,000 - see for yourself using Sorted’s regular savings calculator. Expensive lunches! (You would be even better off if you applied that $168 per month to additional mortgage payments.)
When I think about whether Matt should freelance or whether you should take on part-time work, it’s a more difficult question. Financially, you would be better off having Matt doing some freelance work. By the time that you have paid childcare and transport costs, there will be more money from Matt’s work than yours. Especially since his hourly rate is higher.
However, there is another really important factor: being out of the workforce means that you risk losing your employability. This affects a lot of people – especially women. A few years out of the work force leads to a loss of your network, and a loss of your currency within your profession. It can be very hard to get these things back when you need to. Lots of women, in particular, find that when something bad happens (death or illness of their partner or marriage breakup) that it is hard to get back into their professions and they no longer have the ability to earn a good income.I know that you will be better off in the short-term if Matt starts freelancing. However, in the longer term I think that you would be better advised to get yourself back in the game by doing some part-time work. Doing this means that you will have a bit more income to help your budget. You will also maintain your professional currency, important if you are struck by one of the Three Ds (Death, Divorce or other Disaster).
And when Caleb gets bigger and you can go full-time, you will be able to earn more than Matt would ever earn freelancing.
Martin
Thanks again Martin, some strong arguments there. But I'll keep an open mind until the voting finishes on Monday.
Have a great weekend everyone!
Steph
posted by sortme @ 3:06 PM
6 comments
6 Comments:
Rubbish - re the out of the workforce. Why not find something that you are good at and do it from home! No reason why you can't work from home and have the best of both worlds, be there for your child and earn extra income!
are you getting your working for families handout?
To above poster who says its rubbish re being out of the work force. Are you an employer??? I am - and I can confirm for you that it is a strong disadvantage to have been out of the workforce. A s.a.h.m who has been out of the workforce for some time is not an attractive employment prospect. A lot changes in the workplace in 5 years and I'm afraid you would struggle to keep up. PS. I am a mother also.
They don't qualify for working for families. Their income is $68k. May I take this opportunity to say that all my life I have been a Labour supporter, however I am disgusted with the working for families scheme and will place my vote firmly with National in future. I venture to suggest most Aucklanders who are on higher than national average incomes but also have higher than national average expenditure, will be doing the same. Why am I paying for anyone south of the bombays to breed?
I find it entirely rubbish re the if you are out of the workforce you struggle to keep up. Give me a break! As long as you have a skilled trade such as Physio or something similar to go back to there is no reason to return to an "employer". You can work for yourself from home. I do, I'm a stay at home mum with my own business doing very well and it works for a lot of stay at home mums who don't want Day care to raise their kids!
Thats fine as long as you only intend to be self employed in future. If you ever do wish to get back into the workforce, hmmm, well. Its already been said.
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