April 19, 2010, 5:00 am

Covering My Wife’s Income Within A Year

by: The Financial Blogger    Category: Alternative Income,Career,Project $1500
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We are hoping to sell our house pretty soon and we are already looking forward to buying our next one. We know where we want to go but we haven’t visited the properties we are comtemplating. Why? Because I made the “mistake” of making a conditional offer to purchase a house thinking I would sell mine quickly. In the end, I imagined myself in this new house for about 2 months and they finally sold it before I sold mine… result: I was left with a house to sell and nowhere to go!

So in the meantime, I play with my excel spreadsheet and figure what my new budget might look like. I love playing with numbers ;-). My wife and I were in a serious discussion about how much we can afford for our next mortgage. Since I am moving for bigger and better, we may have to pay more for our next property. The numbers seem too big which scared her a bit.

This is when I pulled out my previous budget from a year ago. She was working full time and we were comparing how much money we were making back then and how much money we are currently making now that she has quit her job and that I am working 4 days a week. Believe it or not, we are now fully covering her income! In fact, we are making much more money now, than when she was working!

Passive income is the key to money problems!

A year ago, I was struggling between my MBA, my new job as a financial planner and working on my online company. Today, I am done with my MBA, I have learned the financial planning game enough to succeed and my online company is generating a very interesting passive income.

Over the past 12 months, we have made several websites purchases, modifications and partnerships throughout the web. We are always thinking about how to make more with less effort and it is working perfectly.

Last week, I wrote about how cool it is to earn passive income. Well over the last weekend, I realized that my online company not only pays for gravy stuff like a Blackberry but also provides me with a better quality lifestyle (working 4 days a week) and is now compensating for my wife’s income. For the record, my wife was making about $25,000.

Fighting for your right to paaaarty!

Love this song from the Beastie Boys ;-). But seriously, this is how I was working to make a few more bucks at work; fighting for raises in my salary! I have written about how I got 3 raises in the span of 12 months and I am looking forward to getting another one in the upcoming months. These income increases were enough to allow me to keep the same net salary now that I was getting when I was working 5 days a week. It does put a lot of pressure as every Monday morning, I wake up thinking I have to bring more money in my book so I can get another raise. But you don’t get anything for free and I am willing to pay the price of pressure to make even more ;-).

Bonus is gravy

Last year, we took the decision of having my wife stay home based on my bonus forecast. I told her that I will be getting her salary as a bonus so she doesn’t have to work anymore. Today, the bonus is not necessary anymore. Therefore, I can plan other uses for it such as:

#1 paying my parents back this year!

#2 going on vacation next year

#3 improving our future house ;-)

I guess this is what makes my calculation so “interesting”. I have to figure out a way to buy the house I want while paying back my parents… I wouldn’t buy a bigger house and then tell my parents “sorry folks, I’ll have to postpone my debt for another 5 years!”

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[...] Financial Blogger presents Covering My Wife’s Income Within A Year posted at The Financial Blogger, saying, “A year ago, I was struggling between my MBA, my new [...]