You've got the crib. The baby monitor. The stroller. The highest-rated-for-safety car seat. You've thought of everything for that newest member of your family. Or have you?
What about your baby's financial future?
We all know we should make and stick to a household budget if we want to be able to sock away savings each month—and end up financially comfortable. But building a household budget as a beginner can be daunting.
Only one in three Americans takes the time to create a monthly budget, a recent Gallup poll showed. (I don't need to tell you the rest of us are spending an inordinate amount of time looking at cat memes instead…)
As savers go, I'm somewhere between decent and so-so…or at least that's what I thought until I saw a 22-year-old neighborhood kid who used to work with me saving $800 a month with his earnings, plus furnishing his own rental apartment (in New York!) and buying a piece of land in Mexico.
Our other neighbor has three kids and she earns a pretty humble salary taking care of babies and cleaning houses—yet she too saves $800 a month. And her cousin-in-law (also a house cleaner) is always the neighborhood go-to lady for loans, because she has stashed away thousands in extra cash. Meanwhile, if I can save $250 in a month, I consider myself golden.
“What is going on with all of these people being able to save so much, when they earn half of what you and I do?” I asked a friend from Puebla, Mexico (his cousin is the loan lady). He thought for a minute and then answered: “I think it's the tandas.”