Comments on: Saving for Baby: Making the Move from Two Salaries to One http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Tue, 18 Jun 2013 21:16:55 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Daniel http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-148042 Daniel Sun, 14 Sep 2008 12:47:40 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-148042 This was a great article, and as mentioned already in some of the other comments, I think that it applies equally well to any transition from two salaries to one. My wife recently went back to school, and a lot of the steps listed in the article are things we also felt we needed to do, in one way or another, to make our budget work: increase our savings cushion, reevaluate our subscriptions/services, and inherit or buy used instead of buying new. This was a great article, and as mentioned already in some of the other comments, I think that it applies equally well to any transition from two salaries to one. My wife recently went back to school, and a lot of the steps listed in the article are things we also felt we needed to do, in one way or another, to make our budget work: increase our savings cushion, reevaluate our subscriptions/services, and inherit or buy used instead of buying new.

loading....

]]> By: Rob in Madrid http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147943 Rob in Madrid Sat, 13 Sep 2008 12:05:55 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147943 I'd also add reading the Tightwad gazette, extreme frugality, but it works. I’d also add reading the Tightwad gazette, extreme frugality, but it works.

loading....

]]> By: TM http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147633 TM Wed, 10 Sep 2008 15:48:11 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147633 We signed up for UPromise (a college savings program) before we've had a child. Earnings accumulate easily in this free program. More about it is posted at http://blog.tangentminds.com/2008/09/college-savings.html We signed up for UPromise (a college savings program) before we’ve had a child. Earnings accumulate easily in this free program. More about it is posted at http://blog.tangentminds.com/2008/09/college-savings.html

loading....

]]> By: Khürt Williams http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147493 Khürt Williams Tue, 09 Sep 2008 10:51:32 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147493 @ Marlene: JD was king enough to forward your comment to me. Thanks for the link. The challenge for us has not been finding health expertise. Princeton has enough doctors to fill a stadium. My wife is getting excellent care for her illness. However, most healthcare specialist in the are do NOT take insurance and the ones that do are under pressure from the insurance company to hand you a pill and see you on your way. We decided to pay for what works and there-in lies the financial challenge. Your may wish to visit fibromyalgia.ning.com. It's a social network for fibromyalgia that I started last year. @ Marlene: JD was king enough to forward your comment to me. Thanks for the link. The challenge for us has not been finding health expertise. Princeton has enough doctors to fill a stadium. My wife is getting excellent care for her illness. However, most healthcare specialist in the are do NOT take insurance and the ones that do are under pressure from the insurance company to hand you a pill and see you on your way. We decided to pay for what works and there-in lies the financial challenge.

Your may wish to visit fibromyalgia.ning.com. It’s a social network for fibromyalgia that I started last year.

loading....

]]> By: Andrea >> Become a consultant http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147479 Andrea >> Become a consultant Tue, 09 Sep 2008 04:08:09 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147479 I'm an at home mom. I'd say "stay at home", except I'm never home and I also run two businesses. I look like a SAHM, because I do my work during the kids' naps and after their bedtimes. I make a very good living and I have no childcare expenses. If I needed to go back to work outside the home, I could do so at a very good salary. This is the best of all worlds for my family. We have a stay at home parent, a solid income and no risks from one person being out of the workforce. Plus we have the cost savings of extended breastfeeding, cloth diapers, home-prepared meals and so on. I’m an at home mom. I’d say “stay at home”, except I’m never home and I also run two businesses. I look like a SAHM, because I do my work during the kids’ naps and after their bedtimes. I make a very good living and I have no childcare expenses. If I needed to go back to work outside the home, I could do so at a very good salary. This is the best of all worlds for my family. We have a stay at home parent, a solid income and no risks from one person being out of the workforce. Plus we have the cost savings of extended breastfeeding, cloth diapers, home-prepared meals and so on.

loading....

]]> By: Marcie http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147475 Marcie Tue, 09 Sep 2008 03:36:03 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147475 As a current stay at home mother (SAHM) I have to disagree with Erika Sparks in regards to life insurance. While it's an excellent idea to get life insurance set up in advance of getting pregnant and becoming a SAHM, I had no problem obtaining a policy. A term life policy can be purchased for whatever amount you want as long as you are willing to pay the premiums and are healthy. Your job, unless in a high risk occupation, has no bearing on your insurability. In fact, children can purchase insurance policies or can be insured on riders to their parents policies even without assets, job skills, or careers. As a current stay at home mother (SAHM) I have to disagree with Erika Sparks in regards to life insurance. While it’s an excellent idea to get life insurance set up in advance of getting pregnant and becoming a SAHM, I had no problem obtaining a policy. A term life policy can be purchased for whatever amount you want as long as you are willing to pay the premiums and are healthy. Your job, unless in a high risk occupation, has no bearing on your insurability. In fact, children can purchase insurance policies or can be insured on riders to their parents policies even without assets, job skills, or careers.

loading....

]]> By: Marlene http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147428 Marlene Mon, 08 Sep 2008 20:36:14 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147428 This comment is for Khurt Williams, I hope you see it. Khurt, please have your wife check out www.fibromyalgiatreatment.com or pick up a copy of "What Your Doctor May Not Tell You About Fibromyalgia" By Dr. Paul St. Amand and Claudia Merick. I also have fibromyalgia and was lucky enough to find this book. I also was unable to work for almost 2 years. Last year I was able to get a part-time job and I am now looking for full-time work. The treatment outlined in the book and on the web-site is not expensive and they don't sell anything. It is not a quick-fix and it is not always easy in terms of symptoms, but it is no worse than the disease, and it does work! Good luck! This comment is for Khurt Williams, I hope you see it.

Khurt, please have your wife check out http://www.fibromyalgiatreatment.com or pick up a copy of “What Your Doctor May Not Tell You About Fibromyalgia” By Dr. Paul St. Amand and Claudia Merick. I also have fibromyalgia and was lucky enough to find this book. I also was unable to work for almost 2 years. Last year I was able to get a part-time job and I am now looking for full-time work. The treatment outlined in the book and on the web-site is not expensive and they don’t sell anything. It is not a quick-fix and it is not always easy in terms of symptoms, but it is no worse than the disease, and it does work!

Good luck!

loading....

]]> By: Lindsay http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147426 Lindsay Mon, 08 Sep 2008 20:04:42 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147426 One major issue about being a stay at home parent is that in many states in the case of divorce you are left in significantly lower financial circumstances than the spouse who continued to work. While all assets are split, the spouse who worked will have a significantly higher salary. Among people I know, women are especially vulnerable when the children head off to college. In many states, alimony has been replaced by child support, so if there are no children to support, the previously stay at home spouse is left with an entry level salary, whereas the person who remained in the workforce has a salary which has increased over the previous ten to twenty years. I don't really have a solution except that it is even more important to someone who is at home that as much money as possible is saved in order to come out with something at the end in case of divorce. One major issue about being a stay at home parent is that in many states in the case of divorce you are left in significantly lower financial circumstances than the spouse who continued to work. While all assets are split, the spouse who worked will have a significantly higher salary.

Among people I know, women are especially vulnerable when the children head off to college. In many states, alimony has been replaced by child support, so if there are no children to support, the previously stay at home spouse is left with an entry level salary, whereas the person who remained in the workforce has a salary which has increased over the previous ten to twenty years.

I don’t really have a solution except that it is even more important to someone who is at home that as much money as possible is saved in order to come out with something at the end in case of divorce.

loading....

]]> By: Megan http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147420 Megan Mon, 08 Sep 2008 19:16:14 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147420 Good article. I am an attorney and have always been driven to work, but decided to try being a SATM, something I never would have thought I wanted, and I love it. Yes it's hard some days, but worth it for us. Financially, we have had to cut back on 'fun' stuff, and may be forced to cut back on retirement savings later this year since we have some changes coming. I thought I would be able to do some work from home, but have found I don't have the time and dedication to do it. We used Craigslist for maternity clothes and the few things we needed and weren't given. Cloth diapers are easy to use, wash, are much cheaper than disposable and can be used for the second one. Plus BREASTFEED! If you have difficulty, buy books, find friends who made it work, or hire a lacation consultant. Good article. I am an attorney and have always been driven to work, but decided to try being a SATM, something I never would have thought I wanted, and I love it. Yes it’s hard some days, but worth it for us. Financially, we have had to cut back on ‘fun’ stuff, and may be forced to cut back on retirement savings later this year since we have some changes coming. I thought I would be able to do some work from home, but have found I don’t have the time and dedication to do it.

We used Craigslist for maternity clothes and the few things we needed and weren’t given. Cloth diapers are easy to use, wash, are much cheaper than disposable and can be used for the second one. Plus BREASTFEED! If you have difficulty, buy books, find friends who made it work, or hire a lacation consultant.

loading....

]]> By: LK http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147414 LK Mon, 08 Sep 2008 18:32:09 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147414 @Jeff - How did you go about re-structuring your finances? We want to do something similar, but the way bills come out at varying times of the month, vs. paydays, it's been hard to do that. Over the course of a month we can sock the equivalent of 1.5 of my checks towards debt, but not all at once (ie, a whole check at a time). How did you start doing this? Did you have to use savings as a cushion while you started it? @Jeff – How did you go about re-structuring your finances? We want to do something similar, but the way bills come out at varying times of the month, vs. paydays, it’s been hard to do that. Over the course of a month we can sock the equivalent of 1.5 of my checks towards debt, but not all at once (ie, a whole check at a time). How did you start doing this? Did you have to use savings as a cushion while you started it?

loading....

]]> By: Jeff http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147389 Jeff Mon, 08 Sep 2008 17:00:57 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147389 Thanks for a great article and to all the commenters above. My wife and I are currently expecting (early Feb). We got some excellent advice to live now on what you will be making when the baby comes. So we have re-structured our finances so that my income is the sole source of revenue, her income now goes to pay down debt so we get a double wammy. We make use of automated payments where possible, this simplifies things so that when we get everything sorted out it should require very minimal intervention when the baby comes, when we are sleep deprived and grouchy! So far this is working well, I earn more than she does, which makes things easier that's for sure. Thanks for a great article and to all the commenters above. My wife and I are currently expecting (early Feb).

We got some excellent advice to live now on what you will be making when the baby comes. So we have re-structured our finances so that my income is the sole source of revenue, her income now goes to pay down debt so we get a double wammy.

We make use of automated payments where possible, this simplifies things so that when we get everything sorted out it should require very minimal intervention when the baby comes, when we are sleep deprived and grouchy!

So far this is working well, I earn more than she does, which makes things easier that’s for sure.

loading....

]]> By: joejoeice http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147378 joejoeice Mon, 08 Sep 2008 15:45:43 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147378 Great article. I like how the author makes the case that this, like many of life's milestones, is a transition that goes smoothest when there have been months of preparation leading up to it. Even if a couple has done work to predict future costs and incomes, I would emphasize having a financial cushion built up. It is hard to really predict cash flow until you are in the middle of it. If the couple has a cushion, and their costs are exceeding their income, they can use their cushion to make up the difference until a solution can be worked out. It is much easier to have a conversation about how if the current path continues, they will run out of money in 5 years than to find out that at a current rate of spending, there isn't enough money for this months mortgage. Great article. I like how the author makes the case that this, like many of life’s milestones, is a transition that goes smoothest when there have been months of preparation leading up to it. Even if a couple has done work to predict future costs and incomes, I would emphasize having a financial cushion built up. It is hard to really predict cash flow until you are in the middle of it. If the couple has a cushion, and their costs are exceeding their income, they can use their cushion to make up the difference until a solution can be worked out. It is much easier to have a conversation about how if the current path continues, they will run out of money in 5 years than to find out that at a current rate of spending, there isn’t enough money for this months mortgage.

loading....

]]> By: Mydailydollars http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147374 Mydailydollars Mon, 08 Sep 2008 15:34:36 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147374 I like how you planned so well to shift to one income! We're a two-income household, but I'd like us to save the equivalent of my take-home pay eventually. I'm able to save about half right now, but I've been frustrated that we can't do more. Your advice to taper things will help us out. I like how you planned so well to shift to one income! We’re a two-income household, but I’d like us to save the equivalent of my take-home pay eventually. I’m able to save about half right now, but I’ve been frustrated that we can’t do more. Your advice to taper things will help us out.

loading....

]]> By: Charless http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147371 Charless Mon, 08 Sep 2008 14:49:42 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147371 Somewhere in the fogs of time I read about investing for your children. As I recall, fifty dollars a month, from birth, til eighteen, is enough that by the time they are forty the compound interest of an index fund will have served them well..(Geesh, that is a convoluted sentence!) I am sure you get the point.. congratulations by the way.. Charles Somewhere in the fogs of time I read about investing for your children. As I recall, fifty dollars a month, from birth, til eighteen, is enough that by the time they are forty the compound interest of an index fund will have served them well..(Geesh, that is a convoluted sentence!) I am sure you get the point.. congratulations by the way..
Charles

loading....

]]> By: Jane http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147370 Jane Mon, 08 Sep 2008 14:44:06 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147370 I am currently a stay at home mom (holding her 3 month old as she types!) who is also a graduate student in the last stages of her dissertation. Before our son was born, I thought it wouldn't be that hard to either work a bit from home or to find affordable part-time child care. I was wrong on both counts. I find it nearly impossible to carve out time to write, and when I looked into part-time day care, I found out in our area it costs between $500-600 a month for only 2 days a week. Now I'm left trying to figure out if I should just take a leave of absence. Nothing can prepare you for how all consuming taking care of an infant is. So if you take on part-time at home work, be prepared for how little you might get done. On another note, I urge potential stay at home moms or dads to consider cloth diapers. We have saved a ton of money that way. Most of our initial start up costs for cloth (ca. $200) were gifts at showers. Everytime I go to buy disposable (we use them on occassion), I am amazed at the cost. I can't say I'd recommend cloth for a child in day care (most won't even allow them), but if you are home and can wash during the day, it really is cost effective and also more environmental. I am currently a stay at home mom (holding her 3 month old as she types!) who is also a graduate student in the last stages of her dissertation. Before our son was born, I thought it wouldn’t be that hard to either work a bit from home or to find affordable part-time child care. I was wrong on both counts. I find it nearly impossible to carve out time to write, and when I looked into part-time day care, I found out in our area it costs between $500-600 a month for only 2 days a week. Now I’m left trying to figure out if I should just take a leave of absence. Nothing can prepare you for how all consuming taking care of an infant is. So if you take on part-time at home work, be prepared for how little you might get done.

On another note, I urge potential stay at home moms or dads to consider cloth diapers. We have saved a ton of money that way. Most of our initial start up costs for cloth (ca. $200) were gifts at showers. Everytime I go to buy disposable (we use them on occassion), I am amazed at the cost. I can’t say I’d recommend cloth for a child in day care (most won’t even allow them), but if you are home and can wash during the day, it really is cost effective and also more environmental.

loading....

]]> By: Peggy http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147368 Peggy Mon, 08 Sep 2008 14:38:56 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147368 It's a challenge, but we are raising (and homeschooling) six children on one mid-five-figure income. More than saving, more than budgeting, more than any other single factor, the best thing we've done has been improve our communication skills. When I really, really wanted a Wii, my husband reminded me of our long-term goals. Do I want a Wii badly enough to leave the kids at day care and public school and go back to work to pay for it? No? Let's wait, then. Craigslist and Freecycle have saved the day for us numerous times and are great resources! (Not that you'd ever find a Wii there, but for clothes, furniture and the occasional nice thing you just can't bring yourself to buy they are a blessing.) It saves my sanity that my husband appreciates my work here at home. We used to joke when we were both employed about how it would be nice to sit around and eat bon-bons all day. Now that I'm a SAHM, I've learned there is not time for bon-bons! We've done without things that a lot of our peers consider "essential" like cell phones, satellite TV and vacations, but it has been so worth it to be here to watch our kids grow up and be such a close-knit family. It’s a challenge, but we are raising (and homeschooling) six children on one mid-five-figure income. More than saving, more than budgeting, more than any other single factor, the best thing we’ve done has been improve our communication skills. When I really, really wanted a Wii, my husband reminded me of our long-term goals. Do I want a Wii badly enough to leave the kids at day care and public school and go back to work to pay for it? No? Let’s wait, then. Craigslist and Freecycle have saved the day for us numerous times and are great resources! (Not that you’d ever find a Wii there, but for clothes, furniture and the occasional nice thing you just can’t bring yourself to buy they are a blessing.)

It saves my sanity that my husband appreciates my work here at home. We used to joke when we were both employed about how it would be nice to sit around and eat bon-bons all day. Now that I’m a SAHM, I’ve learned there is not time for bon-bons!

We’ve done without things that a lot of our peers consider “essential” like cell phones, satellite TV and vacations, but it has been so worth it to be here to watch our kids grow up and be such a close-knit family.

loading....

]]> By: Frugal Dad http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147357 Frugal Dad Mon, 08 Sep 2008 13:33:11 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147357 I am applying much of your advice to my plan to exit the rat race and be a stay-home dad. My wife does not currently work, but would like to teach within the next couple years. If I go home, and she becomes a teacher, I'll definitely need to boost my own "Baby IRA" to draw from when freelance income is down. Great post! I am applying much of your advice to my plan to exit the rat race and be a stay-home dad. My wife does not currently work, but would like to teach within the next couple years. If I go home, and she becomes a teacher, I’ll definitely need to boost my own “Baby IRA” to draw from when freelance income is down. Great post!

loading....

]]> By: Todd http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147356 Todd Mon, 08 Sep 2008 13:32:45 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147356 This is a really great post, especially for my wife and I. We struggled for quite a while to get pregnant, and now that we are expecting it's time for us to start making some of the financial decisions you discussed. I also like the idea of using gift cards and hand me downs to get started. I'll also probably try to dig up a few extra dollars so my wife can have fun buying a few new things for the baby(s). Overall though I think people spend WAY to much on the little one initially. No $1500 cribs for my kiddo. :-) I'm not ever sure our king bed cost that much! I posted this morning about our struggles getting pregnant and going through in vitro fertilization, in case any of your readers are in the same boat: http://harvestingdollars.com/2008/09/08/the-cost-of-ivf-in-vitro-fertilization/ This is a really great post, especially for my wife and I. We struggled for quite a while to get pregnant, and now that we are expecting it’s time for us to start making some of the financial decisions you discussed.

I also like the idea of using gift cards and hand me downs to get started. I’ll also probably try to dig up a few extra dollars so my wife can have fun buying a few new things for the baby(s). Overall though I think people spend WAY to much on the little one initially. No $1500 cribs for my kiddo. :-) I’m not ever sure our king bed cost that much!

I posted this morning about our struggles getting pregnant and going through in vitro fertilization, in case any of your readers are in the same boat:

http://harvestingdollars.com/2008/09/08/the-cost-of-ivf-in-vitro-fertilization/

loading....

]]> By: Melissa http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147353 Melissa Mon, 08 Sep 2008 13:20:23 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147353 Thanks for the great post! We are actually expecting our first child this week -- !!!!! -- and are still working out the details of post-maternity leave child care. I appreciate blog postings on this subject, and particularly, the supportive, positive comments. Thanks for the great post! We are actually expecting our first child this week — !!!!! — and are still working out the details of post-maternity leave child care. I appreciate blog postings on this subject, and particularly, the supportive, positive comments.

loading....

]]> By: Don http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147352 Don Mon, 08 Sep 2008 13:06:09 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147352 Also know, if it is your first kid, you might not be cut out for staying at home. My wife was in the position to do it (making a smaller income than me) and she hated it. Your brain slowly turns to vegetable without adult interaction. Lots of people love being at home with a baby, and my wife said there were lots of plusses. But it wasn't roses and sunshine, and she went back to work relatively quickly (when my daughter was 2 years). My girl flourished in day care, learning to be outgoing and social. Her day care providers hadn't finished college, but frankly they were better with kids than we were, and we learned a lot from them. My little girl is now in 1st grade and doing very well, and I have no regrets for having her do day care and pre-school. Also know, if it is your first kid, you might not be cut out for staying at home. My wife was in the position to do it (making a smaller income than me) and she hated it. Your brain slowly turns to vegetable without adult interaction.

Lots of people love being at home with a baby, and my wife said there were lots of plusses. But it wasn’t roses and sunshine, and she went back to work relatively quickly (when my daughter was 2 years).

My girl flourished in day care, learning to be outgoing and social. Her day care providers hadn’t finished college, but frankly they were better with kids than we were, and we learned a lot from them.

My little girl is now in 1st grade and doing very well, and I have no regrets for having her do day care and pre-school.

loading....

]]> By: CrackingGold.com http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147349 CrackingGold.com Mon, 08 Sep 2008 12:18:00 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147349 At this point, I would also recommend that the couple give each one a "luxury budget." You know, this could be any amount -- but it is important that they have the same amount and that one doesn't ask the other how he or she spent the money. There are really a lot of adjustments done when you're married. I have an upcoming article in www.CrackingGold.com entitled "Financially Wise And Married." Do visit us some time. At this point, I would also recommend that the couple give each one a “luxury budget.” You know, this could be any amount — but it is important that they have the same amount and that one doesn’t ask the other how he or she spent the money. There are really a lot of adjustments done when you’re married. I have an upcoming article in http://www.CrackingGold.com entitled “Financially Wise And Married.” Do visit us some time.

loading....

]]> By: Erika Sparks http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147347 Erika Sparks Mon, 08 Sep 2008 11:40:58 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147347 Some further advice about insurance, which I wish I'd had before I quit work: If your plan is to be a stay-at-home parent when the baby comes, get your life and *especially* disability insurance in order before you leave work. The amount of life insurance you can get (I'm talking term life, of course) depends on your salary - and if you're a full-time parent, guess how much that is? Likewise and doubly so for disability insurance. Since parenthood is an unpaid job, you can't have your salary 'replaced' if you become disabled due to illness or injury. Yet it’s estimated that replacing the work of an at-home parent can be up to six figures (US$). Before you quit work - maybe before you announce your intention to quit, get a non-cancelable disability policy. If your employer offers disability insurance, you can save a lot, but note that the policy will usually only pay 60% of your salary, and may be cancelable. I can think of few situations worse than an accident or illness leaving the at-home spouse permanently disabled, unable to care for themselves or the children, and the other spouse trying to cover care for everyone, medical bills, plus basic expenses with only one salary. Some further advice about insurance, which I wish I’d had before I quit work:
If your plan is to be a stay-at-home parent when the baby comes, get your life and *especially* disability insurance in order before you leave work. The amount of life insurance you can get (I’m talking term life, of course) depends on your salary – and if you’re a full-time parent, guess how much that is? Likewise and doubly so for disability insurance. Since parenthood is an unpaid job, you can’t have your salary ‘replaced’ if you become disabled due to illness or injury. Yet it’s estimated that replacing the work of an at-home parent can be up to six figures (US$). Before you quit work – maybe before you announce your intention to quit, get a non-cancelable disability policy. If your employer offers disability insurance, you can save a lot, but note that the policy will usually only pay 60% of your salary, and may be cancelable.

I can think of few situations worse than an accident or illness leaving the at-home spouse permanently disabled, unable to care for themselves or the children, and the other spouse trying to cover care for everyone, medical bills, plus basic expenses with only one salary.

loading....

]]> By: Ryan @ Smarter Wealth http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147339 Ryan @ Smarter Wealth Mon, 08 Sep 2008 09:53:06 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147339 Great tips. I am justing getting married and I am only 20 so i don't think I will be having kids for the next couple of years, but this is a great post which has alot of great information. Thankyou very much Great tips. I am justing getting married and I am only 20 so i don’t think I will be having kids for the next couple of years, but this is a great post which has alot of great information. Thankyou very much

loading....

]]> By: plonkee http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147335 plonkee Mon, 08 Sep 2008 08:40:48 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147335 @TosaJen: I don't know if you'd consider it better but in the UK women are entitled to up to 12 months maternity leave with the first 6 weeks at 90% of pay, and the next 33 weeks at a standard rate (£110 a week?). The only catch is that you're only guaranteed your own job back if you return within 6 months, but if you return later you're guaranteed either your own job, or one at the same level (if that makes sense). I suspect that the situation is better in other European countries. @TosaJen:
I don’t know if you’d consider it better but in the UK women are entitled to up to 12 months maternity leave with the first 6 weeks at 90% of pay, and the next 33 weeks at a standard rate (£110 a week?).

The only catch is that you’re only guaranteed your own job back if you return within 6 months, but if you return later you’re guaranteed either your own job, or one at the same level (if that makes sense).

I suspect that the situation is better in other European countries.

loading....

]]> By: Sam http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147334 Sam Mon, 08 Sep 2008 08:31:43 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147334 Seven months ago my wife resigned from her treasury managerial job to focus on our baby. It was tough financially as we have to adjust our budget and lessen our fun trips. What I did to "soften" the impact of the reduced cash flow was we did limit our spending by buying only stuffs we really need. I also found more web development projects to add more cash into your daily expense. It was tough by the idea of your partner taking care of your baby is all worth it. Seven months ago my wife resigned from her treasury managerial job to focus on our baby. It was tough financially as we have to adjust our budget and lessen our fun trips. What I did to “soften” the impact of the reduced cash flow was we did limit our spending by buying only stuffs we really need. I also found more web development projects to add more cash into your daily expense. It was tough by the idea of your partner taking care of your baby is all worth it.

loading....

]]> By: Todd A. http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147313 Todd A. Mon, 08 Sep 2008 03:55:16 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147313 You were much more prepared than my wife and I were. Unfortunately, I still read opinions of people who believe that it really doesn't cost much to raise a child (especially during the "baby" phase). That advice plays down the much-warranted caution this great post advocates. You were much more prepared than my wife and I were. Unfortunately, I still read opinions of people who believe that it really doesn’t cost much to raise a child (especially during the “baby” phase). That advice plays down the much-warranted caution this great post advocates.

loading....

]]> By: Kat http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147311 Kat Mon, 08 Sep 2008 03:53:07 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147311 Thanks! My husband and I are waiting for that positive pregnancy test, and I'd really like to be able to stay home with the baby. I'm doubtful that I'll be able to, but it's important enough to me that I can't stop trying..... Thanks! My husband and I are waiting for that positive pregnancy test, and I’d really like to be able to stay home with the baby. I’m doubtful that I’ll be able to, but it’s important enough to me that I can’t stop trying…..

loading....

]]> By: HollyP http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147307 HollyP Mon, 08 Sep 2008 03:14:21 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147307 I second the suggesion to borrow what you can. Every child's preferences are different, and there is no sense in buying something until you know what your child will like. (This goes for kids in the same family too.) Also, it is worthwhile to consider retirement savings when evaluating the cost of going to one salary. I second the suggesion to borrow what you can. Every child’s preferences are different, and there is no sense in buying something until you know what your child will like. (This goes for kids in the same family too.)

Also, it is worthwhile to consider retirement savings when evaluating the cost of going to one salary.

loading....

]]> By: WiseMoneyMatters http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147302 WiseMoneyMatters Mon, 08 Sep 2008 02:40:50 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147302 Thanks for the great post. My wife and I are working hard to pay off debt right now with the intentions of having a child. We are very adamant about raising our own kids (as opposed to having them raised by babysitters, grandparents and teachers). It's a tough thing to do in today's society but luckily with modern technology, there is a lot of opportunity for my wife to earn some income while staying at home. Thanks for the great post. My wife and I are working hard to pay off debt right now with the intentions of having a child. We are very adamant about raising our own kids (as opposed to having them raised by babysitters, grandparents and teachers). It’s a tough thing to do in today’s society but luckily with modern technology, there is a lot of opportunity for my wife to earn some income while staying at home.

loading....

]]> By: Double http://www.getrichslowly.org/blog/2008/09/07/saving-for-baby-making-the-move-from-two-salaries-to-one/comment-page-1/#comment-147301 Double Mon, 08 Sep 2008 02:38:17 +0000 http://www.getrichslowly.org/blog/?p=2039#comment-147301 You covered well a lot of financial preparedness for having a baby and rightly so as raising a baby to adult is costly. You covered well a lot of financial preparedness for having a baby and rightly so as raising a baby to adult is costly.

loading....

]]>