Key Strategies for Increasing Your Income
Looking for ways to increase your family child care income?
Here are five strategies that you may want to consider. You may already being doing some of them and others may not work for you. But, adopting one or two may earn you an additional $1,000 or so each year.
One: Put a cost-of-living clause in your contract. If you raise your rates by 2% a year (about the current inflation rate), care for six full-time children, at an average of $150 per week, you will earn $936 more the first year and $1,890 more over two years.
Two: If you are caring for subsidized parents, require the parent to pay you the difference between your regular rates and what the state pays. Not all low-income parents may be able to pay this, but some can.
Three: Don't give out discounts for the second or third child from one family. Your fixed expenses don't decrease simply because the second child is from the same family.
Four: Take on part-time children, at a daily or hourly rate that is higher than your full-time rate. Example, if you charge $150 a week for a full-time slot ($30 a day), charge $35 a day for a part-time slot. If you fill this slot with part-time children for five days a week, you will earn an extra $25 per week or $1,300 per year.
Five: Make sure you are claiming all of your allowable business deductions to help reduce your taxable earned income. For a list of over 1,000 such deductions, see my book Family Child Care Record Keeping Guide.
Whenever you find yourself making more money, watch out! Don't decide that now you can afford to buy more stuff. If your spending increase at the same time as your income rises, it will be harder for you to reach your short and long-term financial goals.
Once you see an increase in your income from one of the above strategies (or other strategies you may adopt), take this money and apply it to a financial goal: reducing debt, establishing a six month emergency fund, saving for retirement, and so on.
What have been the successful ways you have increased your income?
Tom Copeland - www.tomcopelandblog.com
Thanks to Jeff Wyatt who wrote an earlier article on this topic.
Image credit: https://www.123rf.com/photo_15710544_success-concept-3d-man-on-top-of-business-growth-graph-with-wood-ladder-over-white-background.html
For more information about increasing your income and managing your money, see my Family Child Care Money Management and Retirement Guide.
