I'll give you the rundown.
Used to save a tremendous amount of money and wife and I were smart and saved. Paid 3x payment on house and 20% in 401K
Then we both turned 26. Both of us got kicked off parents insurance. Add $600+ per month expenses.
Welcome baby #1. The pregnancy obliterated over $6,000 of our savings.
Daycare is almost $700 per month.
Doctors visits are $65 each.
Didn't have but one junky family car so we had to buy another. Add another car to insure.
Welcome baby #2 this December 2017! Come next year, daycare will be $1,300 per month... We actually save money if my wife quits her job and stays home.
We have gotten rid of all luxuries and cut corners everywhere and for the first time in our lives, we don't make enough to support our family.
But there is hope!
Since my wife and I were smart about finances, we don't have a single penny of debt in anything except our home. In fact, our home will be paid for in about 5 years at minimum payments.
Since we focused so much on retirement, we can stand to sacrifice a few years of minimal contributions ( just employer match).
Everything we have we own (besides home) so our bills number very few.
Before the baby comes, we can lock down and save up enough to fund another pregnancy as well as gather enough savings for maternity leave.
The storm is coming, and I'm only prepared because I have no payments and I can afford to not invest in retirement.
The next 5 years until kindergarten will be tough. I'll have to either work a lot of OT or get a second job, but we have a very positive outlook. In 5 years, both kids will be in school and our house will be paid off. Welcome back $2,000 extra per month!
Obviously we will have other expenses when that time arrives, but even still, it would be a bear to make it there had we not planned for the future. Please please please, young people, set a budget. Living is very expensive! You don't get fewer bills as you grow up!
Submitted August 03, 2017 at 10:04PM by CleanFlow http://ift.tt/2u9rlaO
