Owning, renting and nannying

by Rocket Finance

I have shared on a number of occasions that as long as we own a home in Wisconsin and rent in Colorado, we will incur a monthly deficit of over $500 per month. On top of that, we are sending our oldest daughter to private school kindergarten which brings our deficit to around $700 per month.

So . . . I have had a few of people ask me how we are making ends meet. There are two main ways that we are getting it done:

First, we were able to rent out our home while we continue to try to sell it. The monthly rent does not cover the entire sum of mortgage, home equity loan, taxes, and insurance, but it sure helps. Furthermore, our renters were having some financial difficulty and this arrangement will help them afford a place to live.

The second way that we have been able to make up our deficit is that Mrs. Rocket has begun running a small day care out of our home. She watches as many as four children (beside our own) during the week. Not all of the children require care every day, but she is working very hard to keep us from falling further behind financially.

Because of the added income, our emergency fund is no longer being depleted, which is a good thing. On the other hand, we are not able to rebuild it either. Probably the worst part of our financial condition is the fact that we are unable to make contributions to our retirement fund. If our house sells, I look forward to taking advantage of the generous retirement package offered by my employer. They will fully match up to 5% of my monthly paycheck once I start to contribute.

How do you deal with a budget deficit?

  1. 6 Responses to “Owning, renting and nannying”

  2. By My Dollar Plan on Sep 15, 2008 | Reply

    Rocket,
    If Mrs. Rocket is running a daycare, please be sure that you got an endorsement for your insurance policy. Daycare in your home needs special coverage.

  3. By rocketc on Sep 15, 2008 | Reply

    Thanks, Madison, I will check into it.

  4. By Four Pillars on Sep 15, 2008 | Reply

    Congrats on making up the deficit.

    I’m curious as to why you have your child in private school since it is putting a strain on your budget.

    Mike

  5. By rocketc on Sep 15, 2008 | Reply

    Ha! I wondered if someone would pick up on that.

  6. By rocketc on Sep 15, 2008 | Reply

    maybe the answer should be my next post

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