Financial readiness??

baeluevano · July 2011

Hell Ladies,

I've introduced myself before & have been lurking a bit but want to really get into it now so.....I have a few financial questions for you. How financially prepared everyone was before deciding to try to conceive?

I am working close to full-time & my SO just got a new Part-time job. We?ve wanted to try for awhile now but we?ve kept telling ourselves that it isn?t smart until we both have jobs. Now that we have met the criteria is there anything else we should consider before trying?

We have monthly bills that we can handle, no serious debt to pay off (just a $500 vet credit card). I have a budget planned to save money for everything we need to prepare for a baby & I will be completely finished with my schooling plan before the new year.

Is there anything that I am missing? Our first pregnancy was very unexpected & unplanned so we didn?t have time to plan or prepare, DD is now 3 & we really don't want to wait any longer.

Thank you for any advise &/or experiences.

brobbins2 · July 2011

Welcome. Since I don't know your personal finances, I can't say without a doubt you will be able to financially handle a second child. It sounds like you've been thinking about it and feel like it will be doable. That's great! The only question I would think about is if you can handle the bills you have now, plus another child in daycare( if you will be needing to put the baby in daycare). That is a major expense to take into account.

My dh and I spent a lot of time talking about if we felt financially secure enough to start ttc. We are in a pretty comfortable position, but the cost of a child sure is daunting. Eventually we came to the conclusion that having a child will be expensive, no matter when we do it and people with much less means than us make it work. If we wait for the perfect time to have a child, we may never do it!

Good luck!

princesscto · July 2011

DH and I are not in the best place financially, but we decided to start TTc anyway, we figure we will never fully be ready financially, and once we do have a baby we will just make it work.

Good Luck to you

hey_little_bird · July 2011

i have always been told, "if you wait until you can afford to have children you will never have them."

i feel like that is reasonably accurate. Big Smile

LM915 · July 2011

We had all these plans and ideas of exactly where we wanted to be financially (along with things we wanted done to the house, etc, etc) before we started ttc. But as time went on, we started wanting to ttc more than getting those things checked off a list. So we decided to start. We still have most of the same goals, and while it might take longer to accomplish them with a baby, we're ok with that.

I don't think anyone can tell you when you're 100% ready, and really, will anyone ever be 100% ready? Maybe, but probably not most people. If you feel confident that you can properly afford and take care of another child, and you both feel ready, then I say go for it. Good luck!

Jellybean707 · July 2011

I think financial readiness isn't just about the income that's coming in.

We are both salaried employees with a strong household income but what if one of us wasn't able to work? What if I was put on bedrest during the pregnancy? What if something happened to one of us?

I think short term/long term disability are both a must, life-insurance coverage(we do 10 times our annual salary), and a cushion in the savings is appropriate. Since my health insurance covers only 80% after my deductible I've also started stashing more away in my HSA to cover unexpected medical costs.

I'm a planner but I still side eye people who say "Don't worry about it. You'll figure it out!" I never want to go back to a time when I have to live paycheck to paycheck and worry about covering even just base costs. Especially with a child to support. Just my 2 cents.

gigismomma · July 2011

All of the PP have very valid points, especially about insurance. I cannot stress how expensive daycare/child care is. It was great when DD started school last year and daycare costs dropped dramatically. Our plan when we decided to start TTC was to save half of what we would pay in daycare costs for a new baby and then save full daycare costs once I got KU. This way we could adjust our financial lives to accomodate another child. I know daycare is not the only cost associated with a child but it is the most expensive monthly cost.

IMO if you are adjusting your budget now it will not be a huge shock to you once the baby is born and the expenses settle in. Having a budget and a plan is a great start.

Good Luck!

notquiteblushing · July 2011

We both work full time and H just got a new job with a 20% pay increase a few months ago. We currently save $1200 a month and in November we'll be able to save almost twice that once our debt is paid off. Also H will receive periodic bonuses that we hope to use to buy one time stuff like baby gear and pay towards our car loan, etc. The day care at my job will cost just under $1000 a month and we estimate baby costs will be around $200 a month (if I can keep myself from buying too many cute clothes). So we're really lucky to be in such a good position and we feel totally ready for a LO. However we're both 31 so it took many years of climbing the ladder so to speak to get here.

megs2011 · July 2011

hey_little_bird:

i have always been told, "if you wait until you can afford to have children you will never have them."

i feel like that is reasonably accurate.

Yes Completely agree with this

Oem617 · July 2011

megs2011:
hey_little_bird:

i have always been told, "if you wait until you can afford to have children you will never have them."

i feel like that is reasonably accurate.

Completely agree with this

Me too!

hols0326 · July 2011

I agree that if you wait until you can absolutely afford a kid, you'll probably never have one.

Honestly, I think if you're both on the same page about your finances, can pay the bills you have & still factor in another kid, great!

BlueEyedDreamer · July 2011

ashcurious:
megs2011:
hey_little_bird:

i have always been told, "if you wait until you can afford to have children you will never have them."
i feel like that is reasonably accurate.
Completely agree with this
Me too!

Indifferent

Please make sure that you have a secure job with good health insurance for your family and enough savings to care for your baby before you TTC.

ETA: I just don't think that the above is sound internet advice, especially for someone who says she doesn't have FT work, whose SO has a brand new PT job, and who has to put a $500 vet bill on credit (i.e. they don't even have $500 saved up for emergencies).

NJtoMD2011 · July 2011

ashcurious:
megs2011:
hey_little_bird:

i have always been told, "if you wait until you can afford to have children you will never have them."

i feel like that is reasonably accurate.

Completely agree with this

Me too!

Me three Big Smile

I think "financial readiness" is a very relative term. A lot of people come up with a list of credentials (pay of debt, buy a house, upgrade car, hit a specific salary, etc.) that must met before they dive in but there is so much more that goes into it. I live in a high COL area - daycare costs alone are enough to make me never feel like I could afford a baby, let alone 2. But you find a way to make it work.

Shayliz · July 2011

I wouldn't have started TTC if both DH and I didn't have stable employment, decent insurance & housing, and manageable debt.

baeluevano · July 2011

BlueEyedDreamer:
ashcurious:
megs2011:
hey_little_bird:

i have always been told, "if you wait until you can afford to have children you will never have them."
i feel like that is reasonably accurate.
Completely agree with this
Me too!
Please make sure that you have a secure job with good health insurance for your family and enough savings to care for your baby before you TTC.
ETA: I just don't think that the above is sound internet advice, especially for someone who says she doesn't have FT work, whose SO has a brand new PT job, and who has to put a $500 vet bill on credit (i.e. they don't even have $500 saved up for emergencies).

we chose to help out a friend when their dog got run over. we are using it as a way to build up our credit with on time monthly payments. we plan to have it paid off very soon. that is our only "debt".I also work for my dad's business as a secretary which brings me to at least 40 hrs/wk. SO will most likely be getting full time hrs before the end of the year.

baeluevano · July 2011

Thank you ladies,

according to most of your advice we are financially stable enough to afford another child. which make me very happy. I just wanted to make sure that there wasn't anything else that I hadn't thought of yet. As much as I would love to own our own house or afford all the luxuries that we we dream of, a family is way more important to us that all of that.

ThePrincessFiona · July 2011

If you can't afford to pay off a $500 credit card then you probably shouldn't have a baby.

The Princess Belle · July 2011

baeluevano:

Thank you ladies,

according to most of your advice we are financially stable enough to afford another child. which make me very happy. I just wanted to make sure that there wasn't anything else that I hadn't thought of yet. As much as I would love to own our own house or afford all the luxuries that we we dream of, a family is way more important to us that all of that.

Well it's a good thing you turned to your financial advisors, a.k.a. internet strangers who based their advice on a few short paragraphs' summary of your finances, to help you make a life-changing decision like bringing a child into this world ... Indifferent

MrsT0522 · July 2011

While I don't agree that you should be asking strangers if you are financially ready for another child, I do think that there are ways to make having a baby less expensive.

Of course, you can't do much about insurance and medical bills or daycare costs, but honestly, a baby doesn't need much "stuff".

That being said, if you feel you can afford it, fgo for it. MH and I will never be rich, but we can make it work my cutting things out once a baby comes. Just because we don't have 10k in the bank doesn't mean we won't be able to support a family.

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