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Something to cheer about
| Sun, 01-31-2010 - 10:29am |
Last month I was lucky enough to find another daycare child that will start on Monday full time. This will bring in an extra $700.00 per month and help us keep float. If we keep on this path (which I think we will) we will be out of credit card debt within 24 month on the line of credit and 36 months on the visa. I want to pay off the line of credit first as it is the highest intrest. After that we plan to tackle our boat (which is 20,000) and then our trailer (which is 40,000). If I focus on all of the debt then i would be up to my chest with which one to put extra money on. So anyways just wanted to tell us about my news. Also my DH fell and got a concusion this week so was out of work all week and will only be working 1/2 days till his energy is fully returned so hopefully he can bring in the same amount of outside sales and then it shouldnt be a problem.



Congratulations! My mom did day care when I was growing up. Can I ask you a question which you don't have to answer online. The only reason I ask is because I think my parents first started their financial difficulties while their day care business was booming. They ended up filing bankruptcy and I think part of the problem is that they were not putting money aside to pay quarterly taxes so when April came around, they would owe the IRS BIG TIME and eventually they couldn't pay it and had to borrow money they couldn't afford to borrow to pay their taxes. When you are self employed you have to pay your own taxes, but I am not a CPA nor do I work for the IRS so I'm not even sure that this applies to you. I don't know your business of course. Maybe you have to make a certain amount of money before you even have to pay. I'm not sure. I just know she was booming with a very large day care business (2 houses) and making lots of money, but not counting on Uncle Sam to come knockin at their door.
Still, congratulations. That is great. Day care is a nice business to be in if you have the patients and love children.
Kathryn
Awesome news...I hope your DH feels better soon!
In Canada you have to make a certain amount before you even pay taxes - with my dayhome I could gross over $2,000 a month, but with expenses still not have to pay any taxes.
~ Mom to 5 ~
I agree. That makes sense. I think my mom was making a lot of money. She was turning away people because she was so in demand.
She bought a second house. I lived there and had the license in my name. I was there over 50% of the time because I was in college and taking classes mostly in the evenings so I could work in the day care during the day. It was her business, but I was the licensee. She paid me a salary. But multiply 12 kids at each house times $700-$800 per kid minus what she had to spend on food and employees and insurance and any other business expenses. Still, she made a decent profit and probably had to pay a lot in taxes, but did not plan well.
I'm not the OP but I also do home child care.