Re: Two-Income Trap
I have not read the book but I am on par with the concept 1000%.
My husband and I Are 50/50 and the income trap would apply just as equally. There is no point whatsoever in him working - his entire check would go to daycare and taxes. Then there is gas and other work expenses, more eating out and paying more for convenience if we both worked, etc. At the end of the day there would be 0 left - maybe $100-$300/month. I'd rather try to find that money else where than working full-time. For now he stays home, watches the kids, cooking, laundry, etc. If I sell something on ebay I send him to the post office during the day, stuff like that, little things a SAH spouse can do to make life easier.
Frankly though most of the people I know, with kids, do not have 2 full-time jobs. My hubby and I were just discussing the other day. I think overall it is a pretty hard road. Most of the people I know have 1 FT & 1 PT time, and/or rely heavily on family for childcare. I don't really know that many people who are taking a 2-FT job approach in raising kids. I could not even imagine. & many have the 2nd PT job for sanity - which is different than relying on it for income.
We were able to spot from a very young age that living on 2-incomes is a trap we weren't interested in. We never relied on a second income. That is just trouble. If you have to, you have to. But too many upper-middle-class rely on it when they shouldn't really have to. It is a nice form of insurance to have 2 incomes and to only rely on one, in case 1 spouse loses a job. We used to make the same wage and as I move up the ladder and dh takes a break it worries me more because we have come to rely on more money than he could probably bring in. So we are working on that.
I know I have said before but I know many many many people making $30k more than us who bring home less because they are in a much higher tax bracket (& like their big tax refunds, etc.). The tax hit would be huge if my dh got a job. For now we keep 90% of my gross, and don't take refunds at the end of the year - helps us stretch more money out of my paycheck.
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