May 29, 2013, 10:11 am

Another Project on the Table!

by: The Financial Blogger    Category: Project $1500
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Life is not interesting without risks and projects

 

Last Saturday, we packed our entire family for a 40 minutes drive for a race. My wife did a 5km, my son did a 1km and both my son and daughter did a 1km Xman race (with obstacles). It was an amazing day. We were freezing (it was 3 degrees!) and we were more soaked than when we hit the pool during a warm day (it has poured rain for the past 5 days!). But, it was one of the best weekends we had enjoyed for a long time! Why? Because we did something unusual. Because while most people were sitting on their coach thinking how this Saturday sucked, we were laughing and screaming to keep ourselves warm. Even my toddler had fun (what kid doesn’t have fun when they are allowed to jump in a puddle of mud?). From 8am till 1pm, we were outside having the time of our lives. I felt alive, truly alive.

 

I Feel Alive When I Have Projects… So Does My Wife!

 

It has been about 6 months that we started an ongoing discussion between my wife and I. Since this winter, she feels bored at home from time to time. She is darn occupied, that’s not the point; but she is constantly cleaning the house, going to get groceries and she doesn’t feel she has enough time to spend with our little toddler. She has been at home for the past four years now but I think she started to feel the routine burden on her back. Even worse: since we want to finally pay off our debts, she is limited with the amount of activities she can do throughout the week. This whole scheme sucks. We needed to find a solution.

 

She thought of going back to school, but doing a bachelor degree (even part time) is very time demanding considering we have three kids. I do have flexible hours but I couldn’t be home at 4pm to take care of my kids and help them do their homework either. I can take off from time to time, but I usually end-up just working longer hours the following day to catch-up. Therefore, if she goes back to school, it would draw money away from our account, it would complicate our schedule to a ridiculous point, she won’t spend more time with our youngest boy and she would complete a bachelor degree for a job she wouldn’t want to work 40 hours/week. So going back to school wasn’t a real solution.

 

Pursuing our discussion, we started to talk about opening a daycare at home. How cliché is that? How many mothers / stay-at-home wives do that? The answer is “a lot!!”. The difference for us is that my wife is qualified to operate a day care as she studied and worked in this field for several years. Kids would benefit from an awesome environment since our playroom was previously a daycare. The playroom is situated on our main floor and is way bigger than any daycare classroom you have ever seen. The job is known, the investment is minimal and the need is there. Oh! Did I mention that my wife has gotten over a dozen requests since we live in that house for a daycare?

 

Work Hard, Pay Debts, Enjoy Later

 

Half of me didn’t to get there. That half thought I could make it by simply making more money. However, if I want to retire early, I realize that I need to pay off my debts faster. Instead of becoming frugal (from the professional spender I am), we can make over $1,500 per month from the daycare that would directly go to our debt payment. The plan is to make roughly $2,500 per month from the daycare, use $1,000 to run the daycare and pay for a cleaning lady. The rest will be applied on our debts.

 

With this decision, it’s obvious that we are leaving our “comfort zone” where we spend 100% of our weekend to do activities where we will have to do some household chores to compensate the fact my wife is working. The point is not to run a daycare forever. But if we can concentrate on working very hard for the next 4 years (until my last kid goes to school), pay off our debts massively and then, finally retire (by the age of 35, remember?).

 

So what do you think? Would you leave your comfort zone for more money? Are you willing to work harder for a few years in exchange of financial freedom?

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Comments

I think it’s a great move! If you get more interest than you can manage, why not charge more-earn more :-) How much does cost daycare in the US? It’s over $100 per day for one kid in Sydney CBD, or about $80 outside of CBD… pretty costly

As for my situation I already mention that here before… I work 60+ hours a week (two part-time jobs), study Bachelor of Accounting faster than full-time, and try to earn some extra money from online business. My plan is to quit one job in November, second in ~ March 2014, and just focus on online stuff which I enjoy and don’t consider as work.

by: The Financial Blogger | May 29th, 2013 (11:09 am)

Hey Jakub,

I’m in Canada. We can easily charge $25/day/kid. The plan is to get 5 kids full time to make $125/day – $2,500/month. We allow roughly $1,000 in costs (including a cleaning lady so we don’t have to work overtime at night!). With an additional $1,500 to put on our debts each month, payments are going to go fast!

Making money online is not easy but it is darn scalable!

Quick question; if your plan is to leave both jobs and work online, why are you doing a bachelor degree in accounting?

I’m doing degree because I want Australian citizenship (I’m from the Czech Republic). Only other “easy” option is to get married, which is nothing for me :)

I think Australia is the best place to live if someone hates cold, and bad weather like I do :) Plus the economic situation, quality of living, awesome people etc…

by: The Financial Blogger | May 29th, 2013 (11:52 am)

I guess that once you start to like cold, you can move in Canada ;-) That’s probably the second best place to live after Australia, hahaha!

Yea Canada is awesome as well. Just the cold, and bears are deal breaker :-D

My initial reaction was of course I’d work harder for a few years to be able to retire early, but nobody can live in the future like that. I believe you can plan for the future and save for the future, but you must live in the here and now to truly enjoy life. Just because you can be happy in eight years from now by working harder doesn’t mean you have to make yourself miserable right now. You should be happy with what ever you do and live each day one by one.

Sounds like a good idea. As someone interested in childhood development, I’d love for it to be themed around enriching and educating the kids rather than just babysitting. In most cities (Montreal included) you could charge just to have them sit in front of a TV. If your wife is already taking care of the kids, then it isn’t all that much more to take care of others.

Congratulations on this decision!

Sounds great. Get an Umbrella Policy and all the business insurance you can to protect yourselves.

by: The Financial Blogger | May 29th, 2013 (5:57 pm)

Jakub,

don’t forget that we also have taxes ;-) hahaha! how’s tax in Australia?

Mary,

this is an interesting concept; it’s tough to live for today and be prepared for tomorrow at the same time…

Alex,
We could charge more, but my wife wanted more vacation instead. Therefore, the parent will pay a cheaper price but would have to take care of their kids for 3 weeks during summer time and during the Holidays as well ;-)

Sam,

GREAT ADVICE! we thought about it already but one should never start a business without proper insurance coverage!

Mike: taxes are not very friendly here :)

Personal Income
- 0% for the first 18k
- 19% for the amount between 18k and 37k
- 32.5% for the amount between 37k and 80k
- 37% for the amount between 80k and 180k
- 45% over 180k
Business Income
- 30%

Personal Capital Gain
- same as personal income with 50% discount if held over 1 year
Business Capital Gain
- 75% discount if held over 1 year + actively used in business

by: The Financial Blogger | May 30th, 2013 (7:22 am)

it looks a lot like Canada!

I’m glad to see that I only pay 19% on my business tax (there is another level at 26% for bigger businesses).

On the other side, we pay 42% in Qc from 80k to 135k (roughly) and it goes up to 49.75% :-(

Don’t trade Kangaroos for bears!

Great move Mike! There isn’t enough daycare services in Winnipeg and it costs more than the rent on your home!

Sounds like a really cool idea! Any chance that the lifestyle just creeps up though lol

by: The Financial Blogger | May 31st, 2013 (4:53 am)

Hey Justin,

maybe I just move to Winnipeg ;-) hahaha! We know we can charge more, but my wife rather keep it low and take more vacations.

Hello Evan,

we will definitely have to quit a part of our lifestyle, but on the other hand, living like we do right now is not realistic over the long haul. I can’t simply expect to make big bonuses for the rest of my life! That’s too much pressure.

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