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Baby Budget Review-please!

Hi all,

Hubby and I are actively TTC and we have just made our proposed baby budget. I'm looking for things we've missed or areas we need to cut or add to. I'm reluctant to cut some luxuries unless really necessary. Here are some necessary details:

We live in the NYC suburbs (about 9 miles outside of Manhattan). Hubby works in Midtown, I work in NJ. He's a senior software engineer (25 yrs old) and I'm a teacher (26 yrs old). When I have the baby, I'll have full pay for 12-14 weeks, then can use up my sick days until I go back to work. I'd like to return to work about 16 weeks after I give birth, barring complications. Baby will then go to daycare.?Hubby will only get 2 weeks off with pay for baby's birth, so he'll only be taking that time. I'll?take care of baby during summer months, so no daycare then. There is a daycare associated with my school, so we don't pay for summer hours unless we want to.?

We have 5x hubby's salary in life insurance and 4x mine through work. Hubby is basically uninsurable by private companies (see medical below), so his life ins is only through work. We have amazing health ins with no premiums and low co-pays. We have both long and short term disability through work. Maternity and well-baby visits are covered at 100% with one $250 co-pay for hospital stay.

Once baby is born, we will have a $25,000 efund and probably $30,000 in 401k and 403b funds (depends on how the market does). We contribute 10% of my income and 17% of his income to retirement, including matches. We are both fully vested. My school will start matching 10% of my salary once I'm there for 10 years (which will be in 8 years).

Hubby gets two annual bonuses which are locked in a year in advance. His 2010 bonuses will net $8,100 and $6,000. These are not included in the amounts below. We're not sure how to use them yet (any ideas??).

DH's income: $5600/month

My income: $2800/month?

Additional tutoring income: $300/month

Total: $8700/month


Expenses:?

Mortgage: $2480

Property Taxes: $617

Home/auto/umbrella insurance: $175

Donations (charity): $50

Medical: $150 (DH has juvenile diabetes, thyroid disease, and chronic kidney stones. His body hates him.)?

Gym: $90 (We use it 4x a week and it has great family facilities for when baby comes)

Cleaning lady: $90 (can cut if necessary)

Electricity: $125 (average)

Gas (for house): $145 (average)?

Gas (for one car): $125

Train pass: $135 (DH's commute)

TV/Internet/DVR's: $160 (non-negotiable!)

Cell phone: $72

Student Loans: $380 ($10,000 left at 2%, $4,000 left at 5.75%, and $17,500 left at 4.5%)

HOA fees: $250

Groceries: $450-550 (varies; we host friends and family often)

Eating out and lunches at work: $400

Gifts: $100

Entertainment/Dates: $200

Personal care (haircuts, makeup, new shirt once in a while, etc): $150

Home repair/decorating fund: $200

Baby fund: $200 (baby fund will have $5750 in it by October of this year; whenever baby is born, the $250 will go to diapers, formula, school/college fund, clothes, etc)

General savings/efund: $700

Daycare (once I go back to school): $1200 for infant room, then $900 at 1 year old

Total: $8680 (I think)

I welcome all comments and suggestions. I promise not to go crazy. Thanks, ladies!?

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[IMG]http://i46.tinypic.com/309n6g8.jpg[/IMG]

Re: Baby Budget Review-please!

  • Eating out seems high especially with your food and date budget.  After baby will you go out as much?
  • You're right, we'll probably cut that in half since we'll have the baby. I guess that extra money will go to general savings? Should I pay more on the student loans?
    [IMG]http://i46.tinypic.com/309n6g8.jpg[/IMG]
  • Some thoughts:

    I wouldn't count tutoring as part of your budget--you'll probably want the flexibility to stop doing extra work when you have a baby.

    Your total housing costs including HOAs are 40%+ of your budget, which is pretty high.

    You should be getting your retirement to 15% at least.

    You're spending more on "fun stuff" (eating out, decorating, etc.) than you are saving each month.

    My big question: I think I remember reading that there's a good chance of your husband dying young. I don't mean to be grim (and forgive me if I'm the wrong poster), but are you financially planning well for that? Will 5x his salary really be enough if the worst happens and you're left supporting kids? His salary is obviously much bigger than yours and given his health and your fixed expenses, this would be a concern of mine.

    image Lucy, 12/27/2009
    Pregnancy Ticker
  • 1)  I would not count tutoring income.  You will likely want as much time as possible outside of the normal school day to spend with your baby.

    2)  Will you really want to continue going to the gym?  We find it is hard enough to work out with DD, and we have a weight bench in our basement.  DH likes to spend as much time with DD after he gets home (and he works in a school).  He would never go to a gym right now as it would either mean he went to sleep really late or barely got to see DD.

    3)  Groceries+Eating Out+Entertainment is very high.  I can almost guarantee you will go out less with a new baby.  You might order in more, but I would guess you will want to spend your time on the weekends with your new baby since you'll be working all week.

    4)  Personal Care seems very high as well.  You could cut here if you need.

    5)  Have you factored in baby costs at all?  Baby fund = $200, you mention $250. If you're planning to use formula, it may be higher than that.  Have you priced that out?  We spend $50/month on diapers/wipes and other baby items, and I bf.

  • Look into your infertility coverage, and decide on plan B if you have trouble conceiving. ?1 in 6 couples do.
    IVF w/ ICSI #2 - fraternal twins born December 2010 at 36 weeks.
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