Not yet TTC but getting worried about $$$
PhillyGal34
member
I know that there is the BOTB board but I feel like you guys are all really positive and supportive so I thought I'd post here. Hope you don't mind!
DH and I are going to start TTC late this summer/ early fall. I am not scared about being a mom... maybe that sounds weird. The idea of our whole lives changing and being about the baby doesn't worry me. I am so excited to be a mom and see my DH as a father and have a part of us to see grow. BUT I am constantly freaking out about the money and finances of it. DH and I make a good salary. We used a lot of our savings for our wedding but we are building it up and will have about 5 months of our expenses saved by next spring. I am also working on building up a fund to cover us while I am on maternity leave and for what our insurance doesn't pay (I get 6/8 weeks of STD and then can use vacation but I will still have some weeks without pay). While we've been saving up money in our nestegg/e-fund we have been putting aside $250 a week to get used to living on less since day care/baby costs would be approximately that much (although I know some weeks are more and some are less).
I see other couples who make far less than we do and survive or have "surprise" babies and make it. I don't know why I am freaking out so much about this aspect. Maybe because I was a surprise and my parents had it really hard when I was a child so I want to avoid that?? Any advice? am I missing anything? Am I even close to being on the right track financially for the baby???
Re: Not yet TTC but getting worried about $$$
The only thing I can rec. is to sit down together and do a budget. Put in diaper costs, daycare, formula (even if you plan to BF it doesn't always work out), dr's appts (there are a ton in the beginning), clothing. Not to mention the supplies that you need before the baby even gets here... I would price out daycares as well. Our daycare costs $285 a week for an infant and while that isn't too far off of your $285, $35.00 a week adds up.
Also, see what you are able to cut out. Any movie channels you can cut? Dining out, nights out, etc.
GL.
WOW - You sound just like me.
DH and I are going to start TTC this summer too. I worry a lot when it comes to finances which is why DH and I waited (almost 5 years ) to start TTC. We wanted to be debt free (minus the house and student loan) Because of my obsessive planning, when the time comes for the BFP we will be able to live just off of DH's salary and put my salary in savings for those 9 months. Then when the baby comes I'll be able to stay home for at least the first year (I have a side photography business that brings in some additional income).
I know what you mean when you say "people who make less still manage to make it work". It's just about budgeting and adjusting your lifestyle. My bestfriend could easily stay home with her daughter while her husband works, but they are use to a certain lifestyle (out to eat, shopping, etc.) and she still wants to be able to do that.
Like the PP said, sit down and do a budget. Budget the cost of formula, diapers, appointments, insurance etc. and always allow room for incidentals. I know a lot of people are getting rid of their land line to cut costs. We did that and saved $55.00 a month ($660.00 a year). Every little bit helps.
**HELLO 6 month bump"
whew so glad I am not alone!!!
I called my insurance company and asked them what the worst case cost scenerio for the birth is and they said that the most I would pay out of pocket for the year is $3600 and that is if something was wrong and the baby was in the hospital for a while. So my plan is to create one account with $4000.00 in it (I like round numbers). Another account with my salary for 6 weeks (the time I will not be getting paid ... again worst case). We can only afford for me to take 12 weeks off and my career doesn't really lend itself to taking any more time off... I really wish I could though! Assuming I get a bonus this year (I am busting my butt to get one again) and our tax return is decent next year, those things will be covered... but we are starting those savings accounts now anyway.
I know we are not supposed to count on showers for stuff but I know my mom and DH's mom will buy us our "big" thing... crib/furniture or whatever and they will throw us a shower (I've already been told this) so that definitely helps with the upfront prep costs (and I am SOOOO thankful for that). I had been planning on my neighbor watching PB (phantom baby) for a while since she is a stay at home mom but she just told me that they are probably moving next year :-( so now I have to come up with a new plan for that. that would have saved us a great chunk of change.
Right now we are putting aside $250 a week toward savings and $100 toward vacation but obviously after we have a baby that is all going to go to baby costs. That would give us about $1500 a month that is set aside to the baby. We also have a few other places that will be cut out (eating out... since likely we won't be able to with the baby anyway). It's funny you said to get rid of the landline. We never had one but we just got one through Comcast because it saved us $20 a month to get it compared to what we were paying without it!!!!
Isn't it nice to know that you aren't the only one who is an (what my husband calls) "over-planner"... What part of the city are you from?
DH and I plan to start trying the beginning of August. I'm really excited!
**HELLO 6 month bump"
we live in the far NE... you?
I am a TOTAL over-planner. DH jokes that I plan time to plan.... which I do. Our plan was to start TTC in November but I'm getting antsy so I have a feeling we will start TTC in late August/ September!!!
I grew up in Notheast Philadelphia (went to St. Huberts High School) but I now live in Bucks County (Langhorne). My parents are still in the Northeast. Did you grow up in the Northeast?
Btw, my name is Nicole
**HELLO 6 month bump"
I think one of the most important thing about babies and finances is self control!
It is so easy to go overboard on baby stuff. To be honest, they don't really need that much. But parents go out and get every little gadget and doo-dad and it adds up (even if you have a shower!) Not to mention the little outfit here and there, that they grow out of in 3 months, if not sooner.
We were team green, so all of our things were neutral and I could use them with both babies. Plus, we weren't tempted to buy 100 little boy/girl outfits.
Cloth diapering is a lot cheaper, and making your own baby food will save you $, too.
There are all kinds of thrifty mom's out there and they are all eager to share their tips! Good luck!
I am definitely planning on going "green" (both color and environmentally) although I only plan on cloth diapering while we are at home. I cannot get past carrying around something that smells that bad when we are out in public. I do plan on making my own baby food and if possible breastfeeding.
My goal is to only use the savings if we have to to cover bills and stuff during maternity leave. I don't want to use it after we have the baby because I want to be able to live on our salaries without dipping into savings obviously. I think I am looking at the overall picture and kind of freaking out because between our nestegg, maternity salary coverage, and health insurance co-pays alone we are looking at having savings of over $30k. that is an awful lot since our wedding somewhat wiped us out! I guess the amount is just overwhelming me right now.
Believe it or not, but we are actually spending less money now than before we had the baby. We cook at home all the time, use cloth diapers, I breastfeed, make baby food, and if we do need any baby things we shop at consignment sales.
We still go and do fun things, but instead of dates and dinners etc... we joined Longwood Gardens, Phil Zoo, and Natural History Museum/Franklin Instit. So we always have a place to go and have fun on the weekends without spending new money all the time.