Financial Independence: Is it a Reality for Work-at-Home Moms?

What does “financial independence” look like for a work-at-home mom (WAHM)? Can a woman who works from home achieve the same kind of financial independence and security as a woman who is employed in a regular, 9-to-5 job out of the home?

The answer: Absolutely yes!

Heather Armstrong’s dooce.com generates millions of views, gets tons of traffic, hence, thousands of dollars in advertising. Her blog  is so popular that she is called the “queen of mommy bloggers”, and earns so much revenue that her husband resigned from his former job and now manages the back end and technical requirements of her blog.

How’s that for WAHM financial independence?

As a WAHM myself, I’ve been fortunate to enjoy a steady and ample income that is separate from my spouse’s. My freelance consulting business has grown so much that my income has more than doubled (considering my previous employment and take-home pay!). My blog has also helped me create a little sideline income stream. So, in many ways, being a work-at-home freelancer has allowed me to contribute to the family’s savings and small investments.

It’s the same for many of my fellow WAHMs, both here in Manila and those in other countries. Whether they are telecommuting employees, freelancers or entrepreneurs, home-based, income-earning moms are finding ways to earn their keep and contribute a significant amount to the family income.

How? Let’s take a look.

1. WAHMs “own” their financial obligations, businesses, and bank accounts, too.
Marge Aberasturi, a professional virtual assistant who owns the VA company, shares how financial freedom is real for her. “I am actually part owner of a science high school in our town, and I'm proud to say that the money we invested on that venture all came from my virtual assistance income,” says Marge. A self-professed former corporate slave, Marge and her husband were used to the cushy incomes and perks of a dual-corporate life. However, since Marge decided to set up shop through her home-based venture, husband and wife have discussed and have “owned” certain financial obligations in the family.

“(For instance) I take care of the tuition and materials of my two homeschoolers and all other miscellaneous expenses (treats for the kids, gadgets, etc.),” says Marge. Her husband, on the other hand, takes care of the household expenses, the family's health insurance and building their retirement fund.

Similarly, Gayle Ortiz, a health and beauty product retailer and owner of a printing business, says that she and her husband have also “laid claim” to certain family expenses so that both can maintain their own personal incomes. “We talked about our financial contributions. Hubby takes care of the household expenses,” says Gayle, whose income goes to her personal expenses, the children’s “wants” and treats. She also makes it a point to set aside her life insurance contributions from her own savings.

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2. They create diverse streams of income (and rock at it, too).
It’s not uncommon to find WAHMs juggling various jobs (I, for instance, am a freelance copywriter, but I also dabble in social media consulting, and editorial management projects). It doesn’t come as a surprise in the WAHM community, who are all used to managing multiple income streams. In fact, diversifying income streams is one of the keys to achieving financial independence as a WAHM.

“I like that I can buy stuff for myself from my own wallet without having to worry about spending our savings,” says Erlaine Gool, who juggles multiple jobs as a real estate agent, blogger, freelance virtual assistant and online entrepreneur. Erlaine is able to integrate her income streams into a substantial income.

Working at home just seemed to be the natural thing for Erlaine, at the time. “After giving birth in 2008, I resigned from my IT work in a bank (with my husband's approval) to be a full-time mom,” she says. Her first venture was online selling through Multiply, while she simultaneously managed the family business. She later took up a course on virtual assistance, which earned her enough to match her income in the family business. “At that point, I resigned (from the family business) and started working from home!” In fact, because her husband takes care of the usual household and education expenses, Erlaine was able to set aside a travel fund from her earnings, enough to take her family to Hong Kong for a vacation.

For Daisy Virtudazo, an online English tutor and outbound specialist, juggling two work-at-home jobs has also helped her establish a sense of ownership over her income. A homeschooling mom of three, Daisy resigned from her office job when she was pregnant with her third child. “It was a huge financial risk but I really felt that God was giving me all the opportunities to work at home so that I could spend more time with my kids and homeschool them,” says Daisy. Aside from helping her contribute to the family income, both of Daisy’s jobs are flexible, allowing her to integrate her work into her family’s schedule.

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3. They prepare for “low times” by building up a financial “war chest.”
Telecommuting moms still have the security of being under the umbrella of their place of employment; they can just work from home. For the entrepreneur or an independent contractor WAHM, however, the financial landscape can change as quickly as clients come and go. This has compelled many WAHMs to consciously set aside funds into a “war chest” for when income streams run low (or dry, in some cases).

“It always comes as a surprise that I am able to manage all of my bills independently,” says Eva Gozon, an online ESL teacher and fitness gym owner. Together with her husband’s earnings, Eva’s regular expenses go towards essentials, such as the baby’s vaccines, amortization, health insurance, electricity, etc. “Although I get financial support from my partner, I (work to) make up for our other expenses through my earnings,” she adds.

The upside? “I only work 4 hours a day, so I have lots of time to spend with my 4-month old baby.”

For Cheryl Goodman, a Filipina based in Seattle, Washington, a professional blogger and couponer, the idea of being “ready for anything” is essential to being a WAHM in this age. A former stay-at-home mom, she and her husband had to adjust to a one-income lifestyle while raising twins! “The transition was rather difficult but we were clear on our goal of being hands-on with raising our children,“ says Cheryl. “The situation forced us to really be intentional with our day-to-day living. Now we are able to maintain our intentional living (meal planning, creative sources of entertainment - no cable, growing our own food) and focus on our family goals.”

As a savvy frugalista, the Goodmans don’t spend on a whim, Even though they are now a two-income household, they still live on a one-income budget. “I am somehow contributing back to the family,” says Cheryl, who earns from the income generated through her blog, FrugalFilAm.com, and other home-based jobs. “Anything extra is immediately put towards savings.”

If a WAHM can start with her own bank account, she has the potential to work her way up to financial independence. The sense of ownership, the ability to earn from various work sources, and the drive to stock up on fallback funds is just the beginning.

If you’d like to know more about how to be a work at home mom, join the WAHMderful Life Workshop, entitled “Real Ways to be a WAHM” this coming January 26, 2013. For details, visit daintymom.com.

 

Image from freelancemom.com