We are expecting, and we know raising a child is not cheap.
Although the initial investment is not huge with Ikea furniture + hand-me-downs, the ongoing cost is likely to be high, day care, college savings, and might need to start hiring help with some house work like cleaning and yard work for a few years.
We have crunched the numbers, including tax implications, no change on house or car situation, and here is the dilemma:
A. If we both work and pay for FT daycare and some help around the house, we will be FI in 4 years (baby turns 4)
B. If I quit and stay at home, we will be FI in 6 years, while DH takes on all the money making pressure and I take on all the housework and majority of child raising
On the surface 4 vs. 6 years is not a big deal, but I am struggling with the following:
With option A, we will miss out some of the “most significant” early development years in our child’s life (according to some studies that’s 0-2 year old), we are first time parents so not a clue on how big a deal it really is, but we both work long hours today. We can have one year with baby FT before school starts and still in that really cute stage. I have not factored in any of the emotional stuff. I’ve heard some people can’t bear the thought of having “strangers” look after their child, not there yet so we don't know how to feel. I was “raised by strangers” until school age but turned out OK, but I do feel my relationship with my parents are not as close as other people, but that might have nothing to do with the “early years” lack of attention. Deep down another selfish reason is that I hate my job and can't wait to get out!
With option B, there are risks associated with one income family. If something goes wrong with his job or economy in general, the whole FI plan can fall apart. I would have to re-enter the workforce likely at the much lower pay. Plus I can’t fathom the huge change from working professional to full time SAHM on duty 24/7 without defined monetary contribution.
The other option is to work part time, but part time daycare is more like 70% of full time daycare cost where I live, we still do a little better money wise compared to one income, and it gives the option to return work FT down the road if needed. I would have gone this route without hesitation, did I mention I hate my current job? Finding a new professional level job but on part time basis is easier said than done in my line of work.
What would you do if you were in my shoes? Please tell me kids don’t remember anything before they turn 3! LOL
Perhaps that way I can get a new FT job hopefully I like more, establish in a year or 2 then have the option to switch between PT and FT down the road if desired.