MM’s Money

September 10, 2008

Daycare & Working

Filed under: DH,Lil One,Planning — mmsmoney @ 12:00 am
Tags: , , ,

We made a hard choice last month – facing my DH’s difficult work situation, we decided we would cut back our daycare to two days per week. This saves us $100 per week and major bucks in cost avoidance. It’s a double-edged sword. Yes, we have to increase our income and figure out our path out of debt, but he’s been bidding jobs all summer and not having a lot of success. Paying for daycare while he’s at home trying to drum up business put a lot of strain on our finances and on our emotions…

Factor 1: He won’t bid jobs that require him to finance significant materials/parts/equipment. We’ve gotten into trouble with this in the past and we can’t do it. Not above a certain threshhold – which we determined together to be $500. That’s the max. So that limits the jobs he can go after. Some jobs/customers will buy the materials (to avoid the contractor’s mark-up which can be 50% plus), so he focuses on these kinds of jobs which are few and far between.

Factor 2: He won’t hire illegals as helpers. It’s not fair to some, but from a legal perspective, and from his personal liability, he can’t do it. Helpers are covered under his umbrella policy and his bonding, but only if they are registered apprentices with the state. So there you go – he can’t get help for $8/hour. He has to pay a living wage to his helpers – and that’s $13/hr and up depending on the skills of the people he needs. So that too limits the size of the jobs he can bid. If he can’t get good help for the amount the customer is willing to pay for the job, the job goes to another bidder. Again – finding the niche that will pay the labor costs for this work is difficult – so jobs are few and far between.

Factor 3: Our babysitter is awesome and flexible with us. Lil One has been with her since she was 3 mos. old and is a favorite at the sitters. So keeping her at all, even if only 2 days a week, was something the sitter was willing to do. She would have been within her rights/and I would have understood, if she needed to kick us out to get a full-time child in that spot. But she didn’t and that’s such a blessing.

So DH has 2 days in the week and the weekend to schedule jobs. Most of the time, he can do that, unless the General Contractor’s schedule requires Monday through Friday. If we run into that, our sitter will accept Lil One for the additional days – as a drop in at a slightly higher rate – but otherwise, we’re only accountable for paying her for the two scheduled days. 

DH is reconsidering his business model – and the ‘industry’ he’s in. It has been so difficult these last few years to make it at all (even without all the bad choices and financial missteps), that it’s time for a significant change for him. And hopefully, getting this figured out will be good for him and good for us, too.

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