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Catherine is a first time momma to a rambunctious toddler. When she isn’t soaking up all that motherhood has to offer, you can find her blogging over at Plunged in Debt where she chronicles her and her husbands journey out of debt. You can also follow her on Twitter.

How to Deal With Your Child’s Wants and Needs

April 2, 2014 | Leave a Comment

My daughter is still young enough that she doesn’t know what she wants yet (I’m find myself reigning my husband in from buying things for our daughter that she thinks she wants and needs ;), he always means well though!).

As she gets older I am fully prepared to have to explain that she can’t have everything she wants all the time. From both a financial and personal development stance, kids need to understand that things aren’t free. Hard work goes into affording all the things they desire and need.

Younger Years

While she’s still pre-school aged, as mentioned she doesn’t want much but she still desires some things.

We were walking through a store the other day and she was pointing towards the cookies in the bakery section. While the cookies only cost $3 they weren’t on the grocery list and a totally unnecessary item to buy. While buying them would have been much easier than listening to her whine the rest of the trip, I needed her to understand that she can’t get something just because she asks for it. I’m not suggesting sporadic treats once and a while aren’t nice but for us this was a moment I needed her to see she can’t always get something for asking.

On a separate occasion my husband went to the store for few items, solo, and came home with a few toys for kiddo. Toys we hadn’t budgeted for but, in his defense they were on an incredible sale. Instead of just giving them to her we opted to use them for future gifts taking from future ”budgets”. Both Easter and her birthday are approaching so we decided to wait and use them for one of these dates instead and reallocate the funds when time comes.

School Aged Kids

A patient of mine has a twelve year old son who decided that he wanted to go on two school trips this year. Both out of province and both quite expensive. Being a single mom with three kids she told him she was limited in what she could contribute and made it clear that if he wanted these trips he was 100% on the hook to pay for them through fundraising events and side jobs.

Mom explained that this was an amazing experience for them.

She had her doubts but her son has reached his goal for one trip and only has $350 left to raise for his second trip. He’s shoveled driveways each storm, walking blocks to get people to pay him, gathered recyclables for refunds ($0.05/can here) and participated in every available fundraising event. Other than the $100 retainer fee mom had to pay to hold his spot for the trips he will be 100% paying his way, all thanks to a ~~little~~ lot of hard work.

Finding ways to make money before the legal working age of 16 is difficult but not impossible. Mom mentioned she was fully prepared to pay him to help with odd jobs that are over and above his daily chores but she hasn’t had to yet. Mom is super proud of his hard work and he’s even more proud of himself knowing he’s going on these trips totally paid for himself, a grand total of almost $2,500.

Any Age

Kids want things other than objects. They want to play organized sports, take music lessons, art classes and travel. No age is too young to have them understand they can’t necessarily do it all, especially if mom and dad are paying. Next summer our daughter will be enrolled in preschool soccer in the summer and dance in the winter. If she decides she wants to do something else instead she will likely have to decide what she wants more because we won’t be in a position to pay for everything she wants.

There’s a fine line between giving your kids an experience and giving them something just because they want it. Make sure you’re able to recognize the difference before deciding what is important to them and your family.

How Do You Deal With Your Child’s Wants?

3 Factors That May Keep You From Getting a Mortgage

March 28, 2014 | 1 Comment

When it’s time for you and your family to buy your first home or upgrade to a new home, you’ll be presented with getting a mortgage. And before you begin your house search, and perhaps talk to someone like this mortgage broker malvern, it’s important that you know what kind of rates you qualify for and how much of a home loan you can comfortably carry.

There are certain circumstances that make it difficult to get a home loan, though.

Here are three factors that can limit your ability to take on a mortgage.

Bad Credit or No Credit

The better your credit, the lower the interest rate on your mortgage will be. That’s why it’s important to work on improving your credit score months before applying for a mortgage.

If you have no credit or bad credit you’ll likely be turned down for a mortgage.

Before applying for a mortgage try the following:

Check your credit score (you can do so for free at a place like Credit Karma)
Check your available credit to debt ratio
If you have a lot of consumer debt work on paying it down

You should also work on saving up a sizeable down payment for your next home.

Self-Employment

Self-employed people can have a hard time getting mortgages – or any type of credit. Generally speaking you’ll need at least two years of self-employment taxes. You’ll also need to provide bank statements showing the income you’re bringing in.

Another choice you’ll have is to apply for a contractor mortgage. Some banks are now making mortgages easier to obtain for independent contractors and freelancers. If you’re in this situation ask your banker for advice for contractors.

You Have Too Much Debt

Having too much debt can not only limit the amount of money the bank will loan you but it can also prevent you from getting a mortgage altogether.

Before you decide it’s time to take on a home loan start working on paying down your existing debts. By doing this you’ll lower your financial burden, increase your credit score, and also increase the likelihood of you being given a home loan.

Conclusion

If it’s time for you and your family to purchase a new home take some time to make sure you’re financially prepared. Pay down your debt, research types of mortgages you may qualify for, and work on improving your credit score.

With hard work and preparation you’ll put your family in a better financial position and hopefully, a new house!

Have you run into any of these problems?

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

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At What Age Should Your Child Get a ”Big Ticket” Gift?

March 26, 2014 | Leave a Comment

When speaking to my friend the other day about Christmas plans, she was detailing what she bought her eight year old for gifts. Included was a laptop. When I inquired about why the eight year old was getting a laptop, she explained that the current family computer wasn’t ”up to speed” in terms of processing for what the girl needed to accomplish school related projects. Knowing that the computer she was talking about was only three years old (since I was with her when she bought it) I called her bluff. I mean surely an eight year old isn’t doing that much computer related homework?And if she is, I’m confident that it doesn’t require that much processing power, let’s be honest! She fessed up that the kid wanted it so they were buying it, and that knowing she would be using it for school made her feel better and that’s what she had to tell herself to justify the purchase.

Am I alone in thinking if you have to justify purchasing an item, and if you’re not totally comfortable with it for whatever reason (an eight year old getting a $500 computer in this instance) that maybe you shouldn’t be buying it?

The other item that comes to mind is cell phones. I didn’t grow up with a cell phone, I didn’t have my first cell phone until university. I relied on the landlines at locations or using my friend’s parent’s cell phones (because there was no way my friends had phones of their own, that was unheard of). Though I can’t imagine my life now without one, I also can’t imagine my young child having access to her own iPhone. It blows my mind how many young kids (less than 15) I see with these devices, although they may just be hand-me-downs from older siblings, which I can see the sense behind. Cell Phone Deal even suggests handing your own old phone down to your kid, which is a good idea if your old phone still works well enough to be used in emergencies. While I suspect when my little one is old enough to venture out away from mom and dad, we will get her an emergency only/call-mom-and-dad cell phone, I will not be buying her a $500 ‘phone’ that requires a $70+ monthly contract to be attached to it. If she wants one of those she can get herself a job and pay for it herself. Especially since I don’t think it is necessary that a younger that 16-year-old even have access to a device like this.

I understand that it is 2014 and things have changed a lot in the last few years, but there is no way an eight year old needs access to her own laptop or a ten-year-old needs the latest iPhone/Android/whatever. It is difficult to balance parenting, trends, and your child’s wants versus needs. I’m not suggesting you don’t buy wants for your children because a lot of what we buy for our kids as gifts are wants and not needs (toys etc) but we need to set realistic expectations for our kids. They need to understand when they want certain things they need to be willing to contribute towards the item since mom and dad are not open wallets.

At what age do you think it is appropriate to buy kids large items like cell phones, TVs and computers, if at all?

Saving on Family Fun

March 19, 2014 | Leave a Comment

One of the biggest changes in our budget is the need to account for an additional person when it comes to family outings.

Everything from plane tickets, to dinners out to attending our local hockey team now have three people instead of two. Though this is something we obviously expected with a child, it was nice to enjoy the early days!

Gone are the newborn days when she would quietly sleep through the odd dinner out or stay snuggled in my arms, usually asleep during a local hockey game. The little girl is a full grown toddler who now demands her own meals and requires her own seat and if we’re not careful, it can get crazy expensive.

While there are certain things we can’t do anything about, like extra seat for airplanes there are many other areas you can save on.

Meals Out

Eating out isn’t a huge part of our lives (I’d much rather entertain at home) it does happen occasionally. When possible, we opt to look for restaurants that not only have a kids menu but offer discounts for kids such as kids eat free.

Growing up we would go to a restaurant where they offered free Shirley Temples for kids and my parents had to pay $0.10/pound of body weight for kids under 12. Though restaurants probably can’t get away with literally weighing kids in the restaurant anymore, there are still many places the have kids eat free with the purchase of a regular entree.

Online Deals

Online sites such as Groupon can be a great place to find coupons and deals for a family that makes an otherwise unattainable event, possible. This can include things like buying discounted restaurant (I often buy gift certificates for our favorite restaurants when they come up at 50% off) or deals on ticked events.

Take Advantage of Specials

Our local movie theater caters to families during regular school breaks such as spring break and Christmas break by putting on discounted days and promos like buy one ticket get one 50% off. During the rest of the year they offer a cheap ticket price on Tuesday. Going to the movies on Tuesday if the only way I pay, especially with children. If you don’t know, call and ask!

Friends of ours always take advantage of our local stage theater by taking their kids to ”pay what you can” night. Basically you show up on the first Tuesday of the seasonal performance, stand in line and pay whatever you can. Tickets normally start at $40 per person but on this night you can pay as much or little as you want.When you have a family and a budget this sort of event is perfect. This is something the theater has always done but never makes a big public announcement.

Good deals usually require some digging!

Membership Discounts

Sometimes it pays to have a kid (in terms of savings acquired).

If I wanted a membership to our local rec center I would be looking at $600 per year as an individual or I could get a family price (no limit on children) for $750 for the year. My husband, daughter and I can all capitalize on the gym, pool, rink and hundreds of classes for only $150 more per year and as our family grows the price stays the same (as is it locked in as long as you renew annually). This membership also gives us some ”free” events to partake in during the year when we’re looking to have a little family fun without breaking the bank.

How do you save on family fun?

Paying For Your Kids Education

March 5, 2014 | Leave a Comment

I had zero financial help when it came to post secondary and I don’t blame my mom at all. Our children didn’t ask to be born so it is our responsibility as parents to provide for them and make sure their needs are taken care of, as far as I am concerned, it is not the responsibility of the parent to pay for post secondary education. However, if you’re in a financial situation that allows it, you may want to help.

We are currently setting aside a little bit of money each month for our daughter because we’re able to. My mom, though she had a good job, was a single parent and many other financial responsibilities. Though we are setting aside a bit of money for her (including any financial gifts she may get) I will not jeopardize my retirement or other financial goals so she can get a degree debt free.

I know of many people who have remortgaged their house, taken out of their own retirement funds just to ensure their kids have no debt when they graduate. This is crazy to me. Kids who go into post secondary ideally will get a job that allows them to repay any debt they borrowed. Though it will take another three and half years for us to be debt free we are 100% doing it on our own and I have zero resentment to my mom for not helping me. I chose to further my education and opted to do two degrees, not her. At 18 I was making my own decisions.

If you do want to contribute to your kids education, start early. We opened an account for her before she was three months old and continue to contribute monthly. We made it quite clear that, especially when she is young, we didn’t need many gifts for her. We would rather have the money for her savings than another teddy bear. This helps beef up her savings and limiting the clutter in our home! Double win.

It is my hope that like both me and her father, come 16 our daughter will be able to balance a part-time job, school and extracurricular activities (though if she can’t job is first thing to go). It is important that we teach her the importance of saving and plan to match any savings she comes up with on her own (to a max we will decide when the time comes). I think this will encourage good saving behaviour, which hopefully will last a lifetime and allow us to reward her for a good behaviour. Saving money isn’t easy and I’m hopeful this will encourage her.

Though I have no intentions of giving up anything I want in my life her post secondary savings (I would gladly give up anything for something she needed) you’d be surprised how easy it is to find even $25 per month. Over 18 years, while it won’t pay for a degree, it will certainly help offset some post secondary costs and your child will appreciate it!

Do you save for your kids post secondary? Will you pay for all of it no matter what?

Tips to Help You Stick to a Monthly Budget

February 23, 2014 | Leave a Comment

It is the beginning of the year and you have decided to finally stick to a monthly budget. The way unexpected bills seem to hit it’s more important than ever to stick to a monthly budget. The following tips should help you stay on your budget.

1. Quarterly Bills

When preparing your budget, ensure you are putting enough back to pay all of your bills since some of your bills may not come every month. Auto insurance may be paid every three months and you want to ensure you are putting enough up to pay all of these bills.

2. Start a Savings Account

If possible, set a specific amount to be sent to your savings account if you use direct deposit. This way the money will be put aside automatically. This will certainly help you save money for those large expenses that often gobble up your paycheck and leaving broke. With a savings account you won’t need a loan when you find yourself in that I need money panic that unexpected bills bring.

3. Budget for Couple Time

Set up an allowance for yourself and your spouse. Learn to make it through the week with this set amount. If you run out of funds for lunch, start taking your lunch. By having an allowance, you will soon learn where you have been spending all of your money each week. After you start missing a few lunches out due to spending your allowance on Starbucks, you will learn to manage your allowance a bit better. To make saving and budgeting easier, you should choose a goal, for example, think of an activity you both can do together. If you both love the rap music Bad Bunny releases, then maybe look into seeing him in concert (you can look at tickets here) or maybe you want to go to a fancy restaurant as a treat. Whatever goal you choose to make budgeting easier, you both will need to stick to, so choose wisely!

4. Keep Receipts

At the end of the week, you can see where you and your spouse are spending every dime. Now, you can sit down together and learn what items can be cut out of your spending habits without changing your lifestyle completely. You may only be able to go to Starbucks twice per week or start buying pounds of your favorite coffee and making it at home. It will certainly be cheaper to enjoy a cup of your coffee at home than stopping to purchase one on the way to work. It may even give you some quality time at home before heading off to work.

5. Meal Planning

Plan your meals by the week. Sit down and plan what meals you will be preparing at home. Create your grocery list and then go shopping. Use coupons or even use the weekly sales bill from your grocery store to plan the meals for the week. Once you begin buying items in bulk instead of one meal at a time, you will see quite a bit of savings on food. Smaller packages of meat are often more expensive than larger ones. All you have to do is divide the meat and freeze for future meals. You may learn that you are saving more money on food as you can buy large packages of meat that might be spread out over two weeks since you will not want to eat the same meat every night.

6. Set Goals

Start with something small such as a night out at your favorite restaurant with your spouse. Next, go to the harder goals such as paying off a credit card or saving to purchase a new car. Setting goals will help you feel good about staying on your budget; however, if you set your goals too high and it takes several months to reach the goal, you may become discouraged. Start small so you can enjoy the benefits of saving money.

7. Spoil Yourself

Remember it is okay to spoil yourself once in a while. If you have cut your favorite stop for a shake or going to the movies to save money, it is still all right to enjoy this treat. Just do not go overboard. Decide how many times you can spend your “mad money” on a movie each month. Allow your spouse to do the same.

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

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The First Timer’s Guide to Purchasing an Investment Property

February 15, 2014 | Leave a Comment

Buyers purchase an investment property for many reasons; to get a foothold in the property market, to build a financially secure nest egg for retirement or to build a property portfolio. Every property investor has to start somewhere, so your first investment property purchase should be researched thoroughly, as not all purchases will deliver positive returns.

Select the Right Property, in the Right Area, at the Right Price

Always choose a property that will increase in capital growth. Purchase in an area you are familiar with and as a first timer, do not consider offshore or interstate properties. Always get an independent valuation and research the current market value of properties in your chosen area. Select an area where there is a demand for rentals to ensure you have a steady flow of rental income. Also check out the demographic of the area as to whether there is greater demand for family homes or apartments to rent.

Select the Right Mortgage

When sourcing finance for an investment property, you will be faced with many options. Your loan will need to be structured correctly, so get expert advice from your financial advisor or mortgage lender. For taxation purposes, it is probably better to keep your current home loan and your investment loan separate. It is also highly recommended that you use an ltv, also known as a Loan-To-Value calculator to help you work out the ratio between a loan amount and the value of the property being purchased with the loan.

Hire a Good Property Manager

A good real estate agent will look after your needs and screen suitable tenants on your behalf. They will do inspections several times a year which you can also attend if you are able to. Your property manager can provide you with a wealth of information on the landlords and tenant’s rights and responsibilities. It will be their responsibility to take care of the general maintenance, hire companies like these commercial carpet cleaning services in Des Moines, IA and any emergency situations that might arise. They can also attend court proceedings in the event of non-payment of rent. It is a good idea to build a good rapport with your property manager and keep in regular contact.

Make Sure Your Property is Ready

If your investment property needs sprucing up, just give it a coat of neutral paint. Make sure your property looks tidy and fresh, as a well-presented property will have no trouble attracting quality tenants. If you’re struggling for funds to get the property renovated, you can look into getting preferred equity financing for property developers for an extra injection of cash to see you through the final stretch. In addition, you will need to ensure that your property is in a livable condition. No tenant wants to move into a new home only to find that there is a mold or pest problem. Preventative maintenance is crucial, and connecting with an experienced pest control company like https://www.pestcontrolexperts.com/aptive/florida/ for example, is advised to keep your property in top condition.

Negative Gearing

There are many things to take into account with property investing. Your accountant will be able to give you advice on capital gains tax, stamp duty and interest deductions. If you make a loss on your investment property, this can be used to offset or reduce tax paid on other income you earn.

Purchasing an investment property is an exciting time and can help you reach your ideal financial goal. Investment properties are a longer term type of investment. Do not place yourself into financial hardship just for the sake of buying a rental property. This could put you in the position of having to offload and sell the property at the wrong time. Choosing the right home loan at the outset will put you on a stable financial path. A Clear Path Variable Rate Home Loan from BOQ can be used to purchase an investment property and gives you flexible repayment options.

Do you have any tips from experience when it comes to purchasing an investment property?

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

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3 Easy Ways Busy Parents Can Be More Frugal

February 13, 2014 | Leave a Comment

As a parent your to-do list can seem endless.

Go to work. Drop the kids off at school. Take the baby to daycare. Pick up the kids. Cook dinner. Take the kids to soccer practice. And, the list goes on and on.

As a busy parent it can be hard to focus on frugality when you can barely keep your head on straight. In these instances it’s the small things that can have the most impact on your financial situation.

Here are three ways busy parents can be more frugal.

Prepare Simple Meals

Keeping your meal planning simple is not only a cost effective strategy but it can free up a ton of time for you. Stock your pantry and freezer with some go-to, simple, and healthy meals that the whole family will enjoy.

What I often do is prepare several meals in advance that I can throw in the crockpot for those busy days. To do this simply gather all of your ingredients, put them in a freezer bag, and toss in the freezer. In the morning simply empty the bag into the crockpot. You’ll have a delicious meal waiting for you when dinner time comes around. Clean up is also extra easy, which is an added bonus!

Use Frugaa When Shopping Online

I tend to do much of my shopping online since it’s a huge time saver. And, every time I do I make sure to check and see if there is a coupon code to go with my purchase.

Frugaa makes this process even simpler. You simply visit Frugaa select your budget and the category or store you want to shop at and Frugaa will show all the available coupon codes that fit your chosen criteria. You won’t have to spend time weeding through different sites or searching for codes that coincide with your budget.

This is another easy way to save time and money.

Maximize Free Activities

As parents it can sometimes be hard to resist buying the latest toys or signing up children for every after school activity – but really, most of this is unnecessary.

You shouldn’t feel obligated to buy everything you see for your child. Free activities, like spending time outdoors, can be the most fun and memorable things you can do together.

Here are some ideas:

Have a “fancy” dinner in which you and your children dress up, use your good dishes, and eat at the table.
Take a walk through the woods.
Visit parks and watch your children play.
Have your kids put on a play for you.

There are endless free activities you and your children can enjoy, you just have to be willing to use your imagination.

One Small Step at a Time

It can be hard to stretch your frugal muscles when you’re always strapped for time. However, if you take a couple minutes at the start of the day to plan things out you can save time and money.

Start by making a few small changes. Once you get the hang of it you’ll be able to easily identify opportunities that will benefit your bottom line.

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

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Why Eating Out is Hurting Your Savings

February 6, 2014 | Leave a Comment

It’s so easy to complain that you don’t have time to cook. You’re too busy. It’s so much easier eating out. The kids have demanding schedules, or you work too much. These excuses can be physically and financially destructive. The truth is that no matter how busy you are, you have time to cook. You just have to prioritize it, and feeding your family home cooked meals should be a priority for your physical and financial health.

Save It for Special Occasions

Decades ago, eating out was a special occasion. Having the occasional dinner out with your family won’t put you in the poor house. It’s the habitual routine of picking up dinner on your way home from work, running through the drive-thru with the kids at lunchtime or stopping by the bakery for breakfast each morning that makes your piggy bank run low. In most cases, you’ll spend at least $20 – $25 to feed a family of four, but that price can go much higher. That money can be stretched for several meals by making a trip to the grocery store instead. Try cutting back on dinners out to once a month. You’ll be surprised at the savings.

You Don’t Have to Be a Chef

Don’t worry if cooking isn’t your forte. Your family doesn’t expect a gourmet meal at home. To throw together a quick breakfast in the mornings, keep English muffins, deli meat and fresh fruit on hand. There are many healthy cereal options, too. Lunches prepared at home can consist of a healthy salad, a tasty sandwich or some hearty soup when the weather is cold. Dinner needn’t be a three-course meal. Sloppy Joes made with ground turkey and served with sweet potato fries will please kids and adults.

Start With a Plan

Your biggest hurdle to overcome is a lack of planning. Every weekend, plan all of your meals for the week. Shop for the ingredients, and use things you have in the cupboards or freezer to cut down on your grocery bill. Use your slow cooker whenever possible for a no-muss, no-fuss cooking experience.

Once you get into the routine of creating meal plans with foods that your family will actually eat, you’ll wonder why you ever bothered with all those trips to your local restaurants. You’ll be healthier. You’ll have more money in your wallet. Finally, you’ll have more time together with your family in your own kitchen. What’s more valuable than that?

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

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Why You Need an Emergency Fund Before Buying a House

February 5, 2014 | Leave a Comment

Becoming a homeowner is a dream for many. However, the dream of homeownership quickly turns into a nightmare for those who aren’t prepared for the unexpected costs that come with owning a home.

Switching from renting to owning a home comes with many changes. As a renter you were able to call your landlord any time something went wrong. As a homeowner you are responsible for the maintenance and repairs of your home like Water Heater Replacement – this can be very expensive.

As a homeowner there are many times when an emergency fund will come into play. Here are some of the surprises that come along with being a homeowner.

Unexpected Maintenance

As a homeowner you should save for routine maintenance issues like getting a regular Furnace Tune-up, sealing blacktop driveways, or getting your septic tank pumped. Then there are unexpected maintenance issues that pop up.

A prime example is waterproofing your basement. If your house has a basement then waterproofing it is extremely important.

Many new homeowners find out that they have flooding issues in their basements only after purchasing their house. To prevent flooding. the drain systems outside have to be fixed and waterproofing inside the basement needs to be performed by a professional to prevent mold and mildew. You can check out basement waterproofing in St Louis services, or services closer to your home, and discuss with them the best way to waterproof your basement for optimum protection.

Costly Repairs

Making repairs to your home has crossed your mind but you don’t understand just how much of a financial impact these repairs can have until one has occurred.

In some circumstances your homeowners insurance will cover repairs, such as wind blowing the roof off your house but you’ll still have to pay the deductible portion of the bill. However, if your roof is deteriorating you’ll have to cover the cost yourself. A new roof for a small house can easily cost in excess of five thousand dollars. So it’s worth picking a long-lasting option from someone like an otsego metal roof contractor who can help you with what you’re looking for.

Other common repairs include plumbing and electrical. In the winter your pipes could freeze and bust causing major plumbing issues that could call for an emergency plumber. Your hot water heater could go out, also requiring plumbers like Express Rooter to repair it for you.

Other costly repairs that might come up are:

Replacing appliances
New windows
Exterior siding
New garage door
Rewiring electric

You never know what can go wrong when you own your own home.

You Need to Be Prepared

Your refrigerator could stop working. Your lawnmower could break down. Your furnace could die. Your hot water heater could go bad. You just never know what will happen when you own a home.

It’s important to have savings for routine maintenance that will help prevent costly repairs and also enough money to cover those unexpected expenses. At the very least you need enough money to cover your homeowner’s insurance deductible. Although it’s wise to have a much larger buffer for all of the repairs that may arise.

Even though owning a home is a dream for many it can quickly turn into a nightmare if you aren’t prepared financially. When it comes to owning a home it’s better to be safe than sorry.

What are your thoughts on making sure you have enough savings before buying a house?

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

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How We Plan To Financially Afford More Children

February 5, 2014 | Leave a Comment

Before I had any kids I thought I’d want a house full of kids. Three or four. Not necessarily because I want to be pregnant that many times or, if I’m being honest, spend that much money, but I want my kids to have each other when they get older. However, since having one child, I am surprisingly content. She’s a great kid who you’d think I’d be looking to clone ASAP but I’m not. As of right now, as our little one approaches 20 months, we have no immediate plans to extend our family.

However, if we can control it, we would like to have at least one more (in a few years). Sure we’re looking forward to having another baby but more than that, again, we want our daughter to have a sibling. Family is very important to us. Though I believe there is no real perfect time to have kids, there will always be something on your to-to list, you can still be more prepared than we were with our first.

We went into having our first sort of blindly. We had no idea how long, or if at all, we would take to get pregnant. It took a lot less than we ever expected which sort of threw us through a loop. We lived on a ”it will all work out” mantra and luckily for us, it did, barely. Come baby #2 we will be much, much more prepared.

Deal With Debt

Ideally we’re debt free by the time kiddo #2 is born, but if we’re not we will try to save enough extra money during the (ideal) nine month pregnancy to continue making our extra debt payments so my 12 month maternity leave doesn’t hinder our efforts. Unless someone has other plans for us, this is something we should be able to control. Having this sort of financial freedom will be liberating and allow me to have a stress-free mat leave.

Use What I Have

There will be huge monetary savings with kid #2 in the aspect that we don’t need any baby ”stuff” since we bought almost all gender neutral baby stuff (minus clothes). We chose to buy a lot of quality baby clothes which we kept so if we have another girl, there will be additional savings with cloths. If we have a boy, I’m confident we can sell the clothes we have to get a good start on a new wardrobe for a little man.

Be More Selective

I’ll be way more selective about what I buy. There was a lot of baby stuff and mom necessities I ran out and bought out of sheer ignorance and barely used most of it. Now that I know what I’ll want and need I will be able to better predict how much money we will really need. I’ll also utilize family and friends in the sense that if it’s an item I can borrow instead of buy, I will.

Diapers

I’ll try cloth diapering. I opted out of cloth diapers this child simply because I was scared and overwhelmed with the whole process. I have friends who have since started cloth diapering and I’ve done research myself and it doesn’t seem so overwhelming. For an upfront cost of approximately <$1000 I’ll definitely give it a shot. If it doesn’t work out I won’t worry since there is a large market for second-hand cloth diapers regaining a large portion of what I put into it.

Breastfeed Again

I was fortunate enough to be able to breastfeed our first for over a year. If I can do it again I would love to for the many benefits and huge cost savings!

How did you proceed with children after your first? Does it get any easier?