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So after much contemplation I've decided to continue forward with my plan and open a day home. Worst case it's not for me, I close and go back to teaching.
What I am wondering is what I can expect to take home monthly or yearly after expenses and tax. In my area People are charging 900-1200 for a FT child. I realize that I may not be full right away or at all or that if an realistically charge or get the max amount. But.... Any idea would be great.
Thanks!
In the past few years my total income after all was said and done is between $15,000 to $20,000. I charge between $28-$30 a day (some are on my old contract still).
Your expenses are that that huge (food, insurance, craft supplies, toys) so just factor that in and you can get a picture. No one could really give you a number that would reflect what you will take in as we all earn different amounts per child per day, some are with agencies etc, some spend more on food and less on crafting...all depends.
I charge 36-40$ per day (some are older clients). I took home 18000$ this year but had about 1700$ in daycare expenses ( I'm still in my first year so a lot of it was start up costs) and that's still not including groceries. I paid 11000$ in groceries this year but not sure how my accountant divides the number up for daycare vs for my family. I generally like to have 3 spots filled but I was down a few times to just 1 or 2 because of clients leaving unexpectedly. I have learned my lesson the hard way, now I keep advertising even when I don't have an empty spot so that when a spot does become available at the last minute I have a waiting list.
Fun&care I think that's a great idea...to have a rolling waiting list. For sure something I will be doing!
Everyone's take home pay will be different. Figure out how many spots you can fill, your daily/weekly/monthly rate (however you are going to charge) and go from there. It should hopefully take no longer than a month or two to be full but of course this all depends on the need in your area.
Every year I try to increase my expenses so it decreases the amount I have to pay taxes on. It hasn't worked yet lol. I am going to try soooo hard not to coupon for daycare. It saves me money monthly but I need higher grocery receipts!! I have young children and they don't eat a lot in one sitting though.
We don't have a mortgage so we can't claim the interest paid on that but we do have a car loan and will be able to claim that this year so hopefully that helps!
I usually use 50% of what I could earn as the amount to plan on as my earnings. Remember some of what you can claim you would have been doing anyways such as paying utilities, etc. Some years it is more or less but a good ball park figure to think about. The idea being if a child pays $25-30 a day then $15 is for meals, craft supplies, etc. and put away for replacing equipment and the other $10-15 is income and then multiply that by the number of kids in care. Also you will lose the benefits of work so may have to find an alternate source and pay, etc. so other things to look at. Biggest mistake in this business is a person taking what they were paying in childcare fees and thinking ok well if I just stay home and instead of paying $200 a week in daycare I care for 5 kids that is $1000 of income ok better than my job. They forget not all of that is income. But $500 a week isn't shabby either.