If you asked me ten years ago if I could ever fathom having a nanny, my answer would have been, “Yeah Right! In my dreams!!” However, I quickly learned to change my mindset; I stopped saying “I wish I could afford a nanny” and started saying “how can I pay for a nanny”. Fast forward and now I have a nanny to help take care of my kids while I’m at work.
Have you ever wished for a nanny to help take care of your kids, tidy up your house, provide you with some much needed time off, or allow you to go on a date night with your husband? Imagine coming home from a long day of work to a spotless house, a toy-free floor, and a hot meal in the kitchen. Well, here are 4 proven ways to do this without breaking the bank.
1) Move to a House with a Rental Suite:
A house with an in-law suite or basement suite can help pay for a nanny! I did this for a couple of years. Before I had kids, I rented out a studio apartment in my house for $850 per month for more than two years. I saved more than $20,400! When it was time, the live-in nanny that I hired was able to live in this apartment. After hours, she was “out of sight, out of mind”. Moreover, under the live-in caregiver program I could deduct another $400 per month for room and board.
Since then, I’ve been living in happiness in the upper two floors with a live in nanny. This has been a big bonus, having a nanny to help take care of my twins, while I juggle a full time career, real estate, and for my own sanity.
2) Create Passive Income to Help Pay for a Nanny:
Another way is to invest your money to make your money work harder. It is possible to buy a brand new investment property with a tenant and property manager, and have it generate you more than $400 per month in your pocket! I have several properties doing just that. You need to know what to look for, but trust me, there are places out there that can generate solid income. I’ve been steadily investing my savings and RRSPs into real estate to generate enough income to help pay for my nanny amongst many other things.
3) Create a Basement Suite and Rent it Out:
You might already be sitting on an income property. Your basement, with the 3 piece bathroom that nobody uses and the outdated wet bar that seemed cool before you had kids, could be an ideal rental suite. Consider hiring a contractor and converting that dated wet bar into a kitchen and adding some walls to create a bedroom. Furnish the unit, and you can easily expect an extra $800++ per month while you live in your home.
This small sacrifice of space can equate to a major lifestyle change. Converting a rarely used space into a money generator can make having a nanny a reality and free up your time doing whatever it is that you really want to do.
4) Watch Your Money Grow in Turn Key Investment Properties
There are many investment firms that offer turnkey real estate investments with fixed returns ranging from 8% to 15% annually. You can invest your savings, typically a minimum of $20,000 and watch your money grow by receiving a fixed return tied that is secured by a real property asset. Now imagine getting an extra $2000-$3000 of extra income per year and nanny sharing with another couple, what a perfect way to pay for your nanny. This is ideal if you are keen to invest but want to be a hands-off investor because you don’t have time nor the energy to be a landlord or manage a property.
I truly believe in the saying “when there’s a will, there’s a way”. Your will to achieve combined with your ability to take action is a powerful combination. Become financially savvy and make your money work harder for you so you can afford the perks in life that you deserve (like having a nanny!) without having to spend even more of your precious time at work. Using the strategies described, you will be on your way to paying your future nanny, and enjoying more freedom.