Author Topic: Game Changer: 1st Baby Coming  (Read 1692 times)

Zola.

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Game Changer: 1st Baby Coming
« on: December 27, 2017, 11:02:14 AM »
My wife just had her 12 week scan, and its the first time we saw our little baby, heart beating etc. Very exciting... but there is a lot we will need to plan for. Appreciate any tips.

Here is my summary:

Joint income per month: 3200 (after pension/401k cuts etc)

After she has the baby she gets 6 weeks of full pay, then it goes to statutory pay, which is a very poorly 550 a month.  That totals about 2400 a month.



As you can see above, thats how a lot of our payments go out typically. Usually the Misc section is quite small but the time of the year has bumped it up. With regards to the mortgage overpayments and extra investing (Vanguard), we will most likely need to drop one of these. I am thinking of dropping the overpayments, and continue investing to free up that extra 350 a month.

I need to trim money elsewhere, most likely with dining and socialising and also reducing the food bill...would really appreciate any insight or advice.

Cheers
Zola

 

Cwadda

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Re: Game Changer: 1st Baby Coming
« Reply #1 on: December 27, 2017, 11:41:01 AM »
What is your interest rate on the mortgage?

affordablehousing

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Re: Game Changer: 1st Baby Coming
« Reply #2 on: December 27, 2017, 01:52:39 PM »
Not a parent yet so can't comment with certainty but I would expect to get all your child gear given to you or found by you. The big thing we're confronting is childcare and how to plan for it. We are taking new jobs so we can work part time and have family fill in the rest. In my market, childcare with a nanny is around $2800 a month. perhaps there is a subsidized daycare program you can take advantage of?

Zola.

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Re: Game Changer: 1st Baby Coming
« Reply #3 on: December 28, 2017, 03:47:16 AM »
What is your interest rate on the mortgage?

3.04%, fixed until May 2019. In the UK its considered a little on the high side, but still not the worst in the current market.



Not a parent yet so can't comment with certainty but I would expect to get all your child gear given to you or found by you. The big thing we're confronting is childcare and how to plan for it. We are taking new jobs so we can work part time and have family fill in the rest. In my market, childcare with a nanny is around $2800 a month. perhaps there is a subsidized daycare program you can take advantage of?


We are hoping to get lots of hand downs from her sister, who's had 4 kids, my brother and sister each have kids too, so hopefully we will be able to get some items passed on to save us buying them.

For us childcare is about 700 a month. My work mates wife does childcare, so hopefully they would maybe give us a reduced rate, but will have to cross that bridge when we get there!

My wife is most likely going to take the full year off. So we wont have to worry about that until after a year or so after the baby is born, as we will need her back at work and earning money. We each earn about the same wage. However her maternity pay is very low (550 a month), so everything will need tightened up.


Cwadda

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Re: Game Changer: 1st Baby Coming
« Reply #4 on: December 28, 2017, 10:42:25 AM »
What is your interest rate on the mortgage?

3.04%, fixed until May 2019. In the UK its considered a little on the high side, but still not the worst in the current market.



Not a parent yet so can't comment with certainty but I would expect to get all your child gear given to you or found by you. The big thing we're confronting is childcare and how to plan for it. We are taking new jobs so we can work part time and have family fill in the rest. In my market, childcare with a nanny is around $2800 a month. perhaps there is a subsidized daycare program you can take advantage of?


We are hoping to get lots of hand downs from her sister, who's had 4 kids, my brother and sister each have kids too, so hopefully we will be able to get some items passed on to save us buying them.

For us childcare is about 700 a month. My work mates wife does childcare, so hopefully they would maybe give us a reduced rate, but will have to cross that bridge when we get there!

My wife is most likely going to take the full year off. So we wont have to worry about that until after a year or so after the baby is born, as we will need her back at work and earning money. We each earn about the same wage. However her maternity pay is very low (550 a month), so everything will need tightened up.

Have you read the threads going around discussing paying off a mortgage early vs. investing the difference?  Many will argue that a 3.04% interest rate is less than inflation, and it makes more sense to invest than pay yours early. Interest rates are very low right now. It's something to consider.

Proud Foot

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Re: Game Changer: 1st Baby Coming
« Reply #5 on: December 28, 2017, 12:04:20 PM »
Definitely stop doing the extra payment on the mortgage now. Save that to help cover costs of delivery (if necessary, unfamiliar with healthcare situation in your country) and then the difference in pay while she stays home.  Once she is on the reduced income you could also stop the additional investing you have listed out until she goes back to work.  Now you are pretty much even with your remaining listed expenses. 

affordablehousing

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Re: Game Changer: 1st Baby Coming
« Reply #6 on: December 28, 2017, 12:22:28 PM »
Zola, sounds like you have things well in hand and this should work out just fine. Congratulations on getting pregnant! Be careful what you wish for with hand-me-downs. After the latest drop-off by friends our living room looks like we opened our own babies r'us store. Are we really going to need 49 pairs of socks? In Finland I think they just send you a cardboard box for your child to sleep in and a breast pump and you have at it. If you have childcare worked out you probably should be all set.

Zola.

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Re: Game Changer: 1st Baby Coming
« Reply #7 on: December 28, 2017, 02:15:43 PM »
Thanks!

Yeah I think I will drop the mortgage overpayment come January - I have a lump sum set aside already of 1050 to pay off in January, possibly as the last overpayment for a while. That 1050 will take an extra 3 months off mortgage length, chipping away at it is really nice and motivating, but I know I will need that extra money soon.

I am keen to keep investing and I think cutting it off for a little while when the baby is born sounds like a good call.