Financially: How close is too close?
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Financially: How close is too close?
| Tue, 03-30-2004 - 3:43pm |
DH and I are coming close to TTC time and we are trying to work the budget so that I can be a SAHM. I have read many times where people have said that if you plan well, get rid of the luxuries, you can be a SAHM on little money. If we lived on just DH's salary, after all bills, gasoline and groceries, we will only have about $400 each month that is unaccounted for. We could probably squezze out a $100 bucks more by downsizing cable/internet, but that's about it. DH and I already live very simply. I don't spend money on new clothes/hair/nails hardly ever and we have just basic cable and we rent movies.
We will have a good sized savings once the time comes. We put a lot of my income into savings just incase something happens (like DH getting laid off, etc.) while I am at home. And I do plan to go back to work when my kids are school aged (I am a teacher).
That said, $400-500 is making me nervous. That doesn't seem like a lot of "extra." It seems like it's really cutting it close. What do you think?

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Laura and Brooke (1/17/04)
Trish :)
Are you planning to breastfeed? There's about $100 a month savings right there... Do you plan to use cloth diapers? There is a small investment ($200-ish for essentials where you'd wash every other day) and then you don't have to buy diapers each week (a savings of probably another $60-ish a month thereabouts...) You'd have to buy each size, but it still works out to be quite a savings. Especially if this won't be your last child... Cooking at home also can save quite a bit of money- it takes some time, but you can learn to cook and feed your family on very little... You can also pack DH a lunch rather than him buying one... Rather than renting movies, consider a library card- most libraries have decent VHS/DVD collections as well as the ever popular book (and even music) selections ;) For cheap/free entertainment- there are many Mom's clubs available that you can involve yourself in- you get adult interaction, your child has playmates- it's great for both of you, and you're not stuck wandering the mall tempted to spend $$'s ;) Coupon clubs are great- there are some here at Parents Place if you look around (different forums have their own as well as forums specifically for coupon exchanges) There are any *number* of tips and tricks for living on a budget, and frankly, as long as you *have* extra, you're doing good. $400 is still $400 you'd *have* rather than $400 you don't! ;)
Wytchy
Cutting corners and living cheaply is right up my alley!! LOL
What about taking some of your money in savings and pay off a credit card or other bill that you pay monthly? We got rid of my lease car (and the monthly payment) and paid cash for a modest, used car. Remember that you can cut money in other areas when you are a SAHM - my car insurance dropped because I now drive minimally (less that 4,000 miles/yr) and no more $4 lattes daily or lunches out, or dry cleaning or buying expensive office attire. I can also get away with a $12 haircut and do the color myself rather than spending $150 every 6-8 weeks on my hair. Breastfeeding will save you a ton of money, too. Shopping on EBay for baby stuff is a saver as well.
You can also do babysitting and earn a little money that way or if you are a teacher, maybe do some tutoring in the evening while your DH watches the baby.
We went from 2 high incomes to 1, and even though it was an adjustment, that was 3 years ago and I can't remember NOT living this way!
Dana
2-04- Jacob
3-00- Jarrod
I think that $400 left after all the bills, gas and groceries included sounds great! Just don't forget to keep investing in a 401k and to have life insurance. Very important!
Also, when the child comes along you can up your deductions...added bonus.
It's hard. My husband is in sales and some months we are in the hole and have to dip into the savings just for groceries and some we have thousands of dollars more than we need. Takes a lot of planning and watching the sales.
I agree with the Ebay thing too....also, selling the baby's used clothes is a great way to get money for new ones!
Good luck!
Melissa
$400 is an average of my husbands weekly check. We have little to none left over and little to none in savings. We are able to do the things we want, vacations etc.. You have to find a way. All of our bills are paid on time or ahead. We just bought a house too. Waiting to move in right now. We have a student loan,car loan, insurance, utilities and now a house payment. We pay the bills first, then work with what is left. Our child has endless amounts of Disney stuff and is not left wanting for anything. We are 24 and will be completely debt free by the time we are 33. That's if we have another child and I go back to work later than planned. Otherwise, when I go back to work my paycheck and our tax refund checks go towards paying off our debt and it will be sooner.
Whatever is decided it has to be a joint decsion. We found it does put a lot of pressure on dad,not only him carrying the finacial burden but, he will be a new dad and there are issues that go with that too.
Best wishes, and lots of luck.
Well, I must say that is pretty good.
We have about $100 after bills, not comfortable to live with, but I have got rid of everything I can think of.
I think you should do good, since you have already done some smart things to prepare for it.
Good luck.
Mel
Andrew 3-4-99
Dalton 12-4-03
You have to remember that you are ALMOST TTC. Lets say that you start in May. And by the luck of luck you get pregnant right away. If you choose to continue working until you deliver you still have 8 months of getting a paycheck. But in all reality, you probably won't become pregnant for a few months. Chances are that you will be able to work the whole next school year.
You can do it. There are always expenses that you are not counting on, but there are always savings you don't count on: using coupons, less gas, car insurance etc.
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