Northern light wrote:
We pay $225 per month for two kids, one with "special needs" (two trained teachers on four kids). And that is maximum. A single parent or households with less income would pay even less.
Municipal pay alot of it, financed by taxes. A system with $1.300 a month per child seems geared up for house wifes. Kind of 1950:ish?
$1,300 divided by 20 days (assuming 4 weeks and 5 days in daycare) is only $65 a day. That's actually not bad from what I hear. That is wonderful that you recieve aid and are able to have help with your little ones. I don't intend on being incencitive but not everyone qualifies for government financial aid. Especially since in this case the OP and his spouse make $160k per year combined.
Do both you and your wife work in the same industry? Do you work for the same company? What would happen if one (or both) of you were to lose your jobs? (Not wishing this upon you but it is food for thought.)
Currently we're saving approx 8% plus company match (5%), but will most likely have to significantly reduce this amount when a second child comes along -- especially with 2 kids in daycare.
8% of 160k is roughly $1,066 a month or $12,800 a year you contribute in savings.
Took out a 400k loan for our family home, making our monthly payment with taxes just under $3k/mo.
$36,000 ($3000 a month) of your income goes towards house payments.
Considering house insurance, life insurance?, & car insurance for two vehicles that is probably another $10,000 of fixed expenses on the budget.
+$12,800 Savings (8% of 160k)
+$32,000 Taxes (Assuming a high of 20%)
+$15,600 Child Car (1300 * 12)
+$36,000 Home Mortgage (3000 * 12)
$106,400 Total Yearly Fixed Expenses
This leaves $53,600 for Variable Expenses. That is roughly $4,467.00 monthly. What can you tackle on the Variable Expenses and reduce or cut out?
Take a look at ways to save money on this thread.
A few questions/observations:
When was the last time you got a quote on insurance? Have you considered getting a quote for your home, life (term I assume?), and car insurances? This could reduce costs.
What about closing off a few of the rooms to reduce costs re: electricity & heat/cool? How well insulated is the house?
Or perhaps renting out a room to a friend/relative? I know not the ideal situation but this would bring in extra $$ from rent each month. Just trying to think outside the box here.
Who does your landscaping? If you do this yourself you can save a significant amount of money.
From experience with family there seemse to be certain large purchases you might want to start saving towards: A New Roof (Every 20 years or so) and A New Central AC Unit (10-20 years). My grandparents recently had to replace their Central AC Unit. Cost about 18k. My in-laws are in the process of replacing their roof soon. Might be a good idea to start saving towards this.
Hope this helps. If not please diregard.