Financially: How close is too close?

iVillage Member
Registered: 05-01-2003
Financially: How close is too close?
11
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?

Pages

iVillage Member
Registered: 12-31-2003
Tue, 03-30-2004 - 4:02pm
Hi, I can totally relate to you about worrying about finances and staying home. My husband and I are in a similar situation. My daughter is now 10 weeks old and all I can say is that finances work themselves out. It is a bit of an adjustment, but one that's WELL worth it. Now that my daughter is here I can't imagine going back to work. I think that because you will have a good savings (and $400 left over each month is a lot more than a lot of SAHMs have) you will definately be fine. Do plan on spending a good bit of money on baby needs each month, but that's to be expected. Also, make sure to budget in money for a babysitter and some fun money for you and your husband to spend one on one time. Trust me, you'll look forward to those dates all month and they are definately needed to maintain a close relationship and your own sanity. Best of luck! Being a SAHM is such a priviledge!

Laura and Brooke (1/17/04)

iVillage Member
Registered: 11-17-2003
Tue, 03-30-2004 - 4:46pm
If the two of you really feel you can make it with that amount left over each month go for it. Being a SAHM is wonderful. Now for us that wouldn't be enough, but we live in California. As long as you have some money left over in case of emergency and those unexpected extras I am sure you will be fine. Sounds like you have already planned by having a savings which is great. Good luck and sometimes you just have to take the plunge and try it out for yourself. Giving up those extras are well worth it.

Trish :)

iVillage Member
Registered: 03-08-2004
Tue, 03-30-2004 - 6:04pm
I think it's very do-able!

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

iVillage Member
Registered: 02-28-2004
Tue, 03-30-2004 - 6:11pm
Lurker here....

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

iVillage Member
Registered: 08-24-2003
Tue, 03-30-2004 - 6:13pm
let me tell you before I moved here to NM, I was the only one working, my husband stayed home with the kids. My income after taxes was about 1100.00. We made it. We struggled a lot but it was the only way because with 3 kids day care would have taken everything he would have made. So we didn't go out but 2-3 times a year. And that was to Panchos for dinner and a movie. I know it isn't very exciting. But we only had about 150.00 left after paying all the bills. If we can make it so can you. Now my husband has a great job that is allowing me to stay home(very hard for me)and make up for some of the lost time. And we will have about 600.00 left after all bills are paid. It feels so good to know that after 3 years of struggle I won't have to worry about anything anymore. So having said all that, I think you will be fine especially if you already have savings. Good Luck to you.
iVillage Member
Registered: 09-15-2003
Tue, 03-30-2004 - 6:20pm
Hi!

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

Meldi
iVillage Member
Registered: 05-05-2003
Wed, 03-31-2004 - 12:10am
I stay at home with our daughter for a number of reasons. Primarily, I had worked at most of our local daycares and I would not put my child there. The childcare workers are completely diffrent when parents leave. I never saw anything that was abuse, but things like not changing infants for 2 hours,( there is a requirement of changing at least 1 time in 2 hrs) one worker only changed an infant 1 time every 2 hrs. She was soon fired but, she had worked there for several years. A teacher in the 2 yr old room would grab children by there arms and jerk them, I swore she could have pulled little arms out of socket. Nothing ever happend to her. I do not want our child in that enviroment. There are more important things than money. Second reason is by the time I went back to work, with extra gas,car maintainence,childcare $60-$120 per child per week the extra money I made would be gone. When she starts school I will start work again.

$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.

iVillage Member
Registered: 01-06-2004
Wed, 03-31-2004 - 12:35pm

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

Photobucket - Video and Image Hosting

iVillage Member
Registered: 03-30-2003
Wed, 03-31-2004 - 7:35pm
The best thing to do is to start living off his salary now. Put your salary in the bank and don't use it. That way, you can see if it is doable (but you have to remember that babies do add to the cost of living) and get some more savings.

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.

Ejkdmom Come visit my store: www.leorra.com
iVillage Member
Registered: 08-27-2003
Wed, 03-31-2004 - 10:09pm
If SAH is something you really want to do, go ahead and try it. My husband and I weren't sure whether we could make it on just his salary, but we figured that we would try it for awhile and if it did end up being too tight I would just go back to work. I don't know what the job market is like for teachers where you are, but I would think that even if you decided during the year that you needed to work you could substitute.

Pages