Devoted to WAHMs -Work at Home Moms

You may have heard about the new law that went to effect this week. The law increases the federally required minimum wage over the next two years, from $5.15 per hour to $7.25 per hour.

Mary Emma Allen at Home Biz Notes has an excellent post on how the increased minimum wage may affect home businesses.

I have a few additional observations about how the change in minimum wage may affect WAHMs.

1. Some WAHMs may be forced back into the corporate world.

Many WAHMs that I know are just barely making ends meet. Some have become WAHMs specifically to balance the family budget. I know a lot of WAHMs who say that they just need an extra $500 every month to help their family make ends meet.

If the increased minimum wage causes the cost of living to go up, then that $500 every month may become $700. Those WAHMs that are barely keeping up may have to earn additional income or return to the corporate environment just to get by.

2. Unscrupulous employers may try to hire independent contractors.

Unscrupulous employers may try to hire independent contractors at lump sums that work out to be far less than minimum wage. Rather than pay the higher wage, some employers may outsource non-key functions that can be done remotely.

WAHMs should be cautious about jobs that seem to require too much work for the money being offered. Everyone has their low-pay horror stories, but now is a time to be extra careful about the jobs that you accept.

3.The cost of supplies may increase.

As Mary Emma pointed out in her post, the cost of office supplies, craft supplies, and many other business expenses may increase. This additional cost may mean that you have to raise your rate or increase the price that you charge for your product.

There are some things that you can do to protect your home business from inflation.

1. Make sure that you know how much you are earning per hour. Many WAHMs don't keep adequate track of their time and earn much less than they realize. Make sure that you earn more than minimum wage.
   
   
2. Shop around for supplies. Even in times of inflation deals can be found. When you find a deal, stock up.
   
   
3. Evaluate your rate, or the price you charge for your product, on a regular basis. If needed, make a reasonable adjustment in the rate or price. You can give yourself a cost of living increase!

The increased minimum wage can be a wonderful way for those on the bottom end of the economic scale to improve their lives. For the unprepared WAHM, the increase could be painful.

Be prepared! Don't let the impact of the increase catch you by surprise!