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baby/house budget review

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gmarie

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Ok, so I FINALLY have a balanced budget with DH Salary and my current at home part-time job and 1 baby/ buying a house for 15% of our NET take home pay including taxes/insurance.

 

*The budget does not include any extra for me working other bookkeeping/tax prep jobs or snowflakes, just our minimum income. I have also done tax planning based on one child, and all tax deductible items listed below and have adjusted our withholding; we will have no refund based on these numbers.

 

*The budget does not include child care since it is based on me working 15 hrs from home; I'll have to do it when DH is home so no childcare needed.

 

Church/Charity, 5% gross

Retirement, 15% gross

College Savings, $250/mo

Life Insurance, 10x income

House Payment, 25% NET (including taxes and ins)

House Repairs/Sinking Fund, $150/ mo

Utilities, $183 mo (based on our current budget/we are looking to buy small house hopefully with woodstove similiar to current rental).

Vonage phone, $12

Internet, $60 (full price w/o promotion)

Cell, $41 (prepaid for me 8.33 /mo and $32.95 for DH)

Food, $150 (will be breastfeeding/also get free milk & food from DH work, and our garden).

Misc Household, $10 (cleaning supplies, etc)

Personal Care, $20 (this is low for us but I had to cut somewhere). but if i coupon for PC items, I think we would be ok.

Haircuts, $17

Gas, $200 (this is low and based on DH driving a gas efficient car to work; and minimal driving for me)

Auto Repair, $100 bal to car replacement sinking fund.

Car Replacement, $150

Car Ins Fund, $150 (this should go down soon)

Clothing (200 each yr) so 16.67/ mo each

Misc Baby Expenses (incl clothing and cloth diapering), $70

Note: baby center estimates $19/ mo for cloth diapering - does this sound too low?

Cats, $15 (this is low based on our current spending, but need to find cheaper litter)

Gifts, $50 (low but with handmade plus bing/swagbucks, i think we would be ok.

Health Ins, $390 (2k deductible), includes ins for myself and baby (no deductible for baby)

DH Health Ins, included in net pay but $104/ mo with 2k deductible.

Eye Care (me), $8

Blow Money, $10 (low but we've done it before)

 

Savings/BS6: $18.34

 

Missing:

HSA contributions for deductibles

Vacation Fund

 

It is tight, but we are including several baby steps here; I *think* the only thing we are really missing is the HSA, vacation fund and a snowball for BS6... what do you think?

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You didn't include the monthly premium cost of the life insurance or house payment. What is the total income and your total expenses?

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I think she included them in her figures, but she is keeping house payment and total income to herself, that's why she has 25% NET going toward the house payment as a line item.

 

Any eating out or does that come out of blow $$? Also if there is no snowball you may considering reducing the college savings. Sure $250 is great but it isn't necessary if you find that you are too strapped every month in other places.

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My intention is to get all of our expenses and baby steps in the budget and then any snowflakes or extra income will be our snowball, and of course the college savings would be one of the first to go if necessary. We would also have 6m emergency fund. And 15 hrs for me is only temporary for the first few years or so.

 

We don't currently eat out so not in the budget and I don't see that changing with a baby, we occasionally get Chinese but that is cheap and comes out of food budget. Dh is always taking event leftovers home so get lots of treats from him.

 

What do u think of the baby expenses and house repair fund?

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My daughter does cloth diapering for her baby and other than the up front cost of buying the diapers there isn't anything extra per month that she buys. She loves doing cloth diapers and she does a load of diaper wash every other day so laundry expenses do go up but not by that much. Hope that helps.

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Baby expenses for me were VERY low. We had zero snowball when we had a baby (after retirement and debt payments) so we didn't do much at all. No new clothing purchases, baby stuff was purchased with gift cards from showers or given, all but two of my outfits for the first six months were purchased by others. As my daughter grew we shopped thrift stores, but I found most of the time if I allowed God to provide for our needs he did. People still give me huge garbage bags of clothes for me and my family. :) I love recycling so it's good. When we had to add formula because of DD's diagnosis we were paying about $25/week and that was cheap but something to keep in the back of your mind as a figure. DD2 nursed for 13 months so that saved me some money! I'd say your budget looks pretty good. :)

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I use cloth diapers for ds. Made by WAHMs. My laundry system took some tinkering but has been working perfectly for 19 mos. we do use disposables on trips.

 

Dd had some formula for a week (she wouldn't latch for her first month, and it took a few days to pump enough milk). Ds has never had formula. I imagine I will wean him around 2, the same as for dd. nursing was a challenge for me initially both times, ds had a lip tie, and dd was a stubborn cuss (once she did latch at 6 weeks she never once took a bottle again, not even during an 8 hour daycare day), but with help from lactation consultants and my CNM we made it through (as my midwife said about dd refusing to latch "if you let her win this she'll be winning everything right through her teens").

 

People tend to over buy for their first, you really need very little.

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Thanks for all of the info. I agree that it seems like most of what people buy is unnecessary, and I don't have any issue with buying used. I still have a lot of research to do regarding baby stuff but I should probably save that until I am actually pregnant lol. For now I'm just relieved that I got the budget to work! but I hope that I am not overlooking anything big...

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I spend roughly $30/mo on disposables (sigh, and I even have cloth in the cabinet), so you should surely be able to cloth diaper on $19/mo.

I think people who spend $40+ on diapers per month probably only use name-brand diapers and wipes.

 

Also, if you cloth diaper - I say just buy two dozen up front and don't visit diapering boards or get obsessed with having a cute cover or whatever --- I've seen some of my friends spend way too much on that stuff. It's just a diaper. It'll get really gross stuff on it. Get over it.

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I used Huggies, but bought the big box at Sams for about $35, and that would last me almost a month. When I would buy smaller packs at the store, it would totally blow my budget.

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I use Comforts brand, it's a Kroger brand. I can get a case for $21, usually have coupons that will make it $1-$2 less, and those last me about three weeks.

 

The cloth diapers I used on my oldest were bum genius. I'm sure there are better brands out there for cloth diapering, but that's what I used almost exclusively for the first.

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I think it looks well thought out and organized.

 

You also get so many baby gifts, so they can be a blessing as well at the start.

 

 

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Thanks, Reddoor.

 

DH and I had a fun day yesterday. We picked up a gorgeous, FREE, dollhouse on CL. I mean this thing is just amazing - a colonial, blue, with white columns in the front. (actually it is quite similar to my dream house lol). We plan to restore it for a future kid (the outside is finished/ the rooms inside are bare), or maybe give it to a niece as a gift. Until then, the cats are having fun hanging out in it, and it's just so pretty to look at. I love CL!

 

The other thing we did is drive by 3 houses at rock bottom prices (ones that would easily fit into the budget above), and there is one in particular of interest. It is 3 bedroom, 2000 s.f., woodstove, above ground pool, 2 acres, lacks character and the acreage we want, but it looks like it won't need a total renovation and would be livable as is. It would be well under our 25% net with property taxes and ins & 15 yr mortgage, and we could probably pay it off in a few years.

 

It is NOT our dream house, but if we are going to live frugally and within our means, I think we should seriously consider it. Again, it's not necessarily ugly, it just lacks character.

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The house sounds good, even without the character. You can add your own character. Or be a character. Ha ha. Sometimes I crack myself up.

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oh we're characters. ;-)

 

it's a ranch; 1 floor. The land is mostly in the front, so we would need to put our gardens close to the road; but with fencing this could be ok.

Who knows if it will be there when we are ready.. but it has been on the market for over a year.

 

I love looking exterior before/after slideshows from this old house. It gives me hope that even the ugliest house can be made cute.

 

here is one:

http://www.thisoldhouse.com/toh/photos/0,,20500477_20973119,00.html

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