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Thinking ahead before kid #3 is born

January 13th, 2015 at 01:33 pm

I have some time to really think ahead and then put in to action plans before kiddo #3 is born. On the agenda:

1.) Hubs 401K matching kicks in soon...do we contribute to get the matched funds and utilize the concept of compounding interest and time or direct as much as possible toward student loan?

2.) It will cost at least $4K out of pocket after health insurance for hospital etc for baby...do we save the $4K plus now and pay it after birth or break payments down over the course of the year after kiddo arrives, while putting funds in other areas?

3.) Do we move out of the 2 bedroom where kids currently share a room or do we stay for one more year and figure out a living situation by rearranging apartment, sleeping on couch, having kid in our room or giving up our room to sleep on a pullout? Rent in CA is mucho $$$ and also hard to find a place allowing pets.

Luckily our car already has a 3rd row. It was an unknown extra when we bought the car so somehow I think the universe/G-d/etc. already had this part ready and figured out for us. Lol. As for kids schooling, it was a tentative plan to charter school/homeschool program with the charter school, but will this be unrealistic with #3 and will I need that time of having kids off at public school during the day? What else can I cut to continue to add to the kids college fund and our debt pay off and dream fund (so far not there now with expenses). At this point the hubs is working and doing as much side work as possible. No one will hire a prego woman so I'm wondering what else I can do at this point considering #3 was not on the original plan and I was going to find work next year...was.I can get the real estate license, but how realistic is it for me to utilize that with kids? I kind of feel like just as it was going to get easier #3 happens and new plans need to happen, but how is it possible to still maintain the current finaces while I know things are just going to be more expensive with all the gear, diapers, food, etc that will all cost more? what more can I do aside from save as much and not spend, but how do we continue to make more money next year when the baby is here in the summer?

5 Responses to “Thinking ahead before kid #3 is born”

  1. Kiki Says:

    1. Figure out the interest rate you have to pay versus the investment rate you are earning in the 401k investments. Max out the 401k for the full match then figure out is the SL rate higher or the 401k rate higher. That should help you figure it out.

    2. Save the moneuy needed this next 8 months. Get the hospital bill.
    Negotiate 20%+ off the bill buy paying in cash. I did that for my mothers bill several years ago. They gave us 28% off the bill for her portion because we paid in cash one lump sum.

    3. I understand the three kids in one bedroom/having a kid in your room thing well with what my sisters went through. Logically, will the child sleep in your room for the first year or so anyway? I would stay where I am (unless you can move now and save money by getting into a better area but less rent). I am also in California and understand the expensive rents. Do a pros and cons list to see where you would put the child for the first year. You certainly do not want to be moving with the baby is only a few months old or when you are 7+ months pregnant. Also is there a fee to cancel your lease and move someplace else? Do you have moving funds, first and last and security deposit, energy to clean the apartment, etc. now or would you rather do it later?

  2. turning a new leaf Says:

    Kiki, Thank you for the advice!!! I had no idea that a hospital bill could be negotiated, which makes sense too. Although $4K is crazy too to pay out of pocket, it is still better than over $6K for one child I remember. As for the lease, I called the apartment manager and if we upgrade to one of their larger apartments, we could transfer our security/deposit, but would have to resign the lease, which would be fine for us and good for them since we already live here and they know who we are. We will see though what the difference is since they have to upgrade a few things on the larger unit. However, children are super expensive and an extra $100-500 for rent could go toward diapers, gear, bills etc. for both kids they were in a basinet for 5 months and then the crib. It was the teething/crib time that was the hardestFrown

  3. creditcardfree Says:

    I think Kiki has good advice. I would contribute to match, save for hospital birth, attempt to negotiate, and then hit those student loans. I also would stay in your current place for at least another year...or until lease is up. Little kids need space to run, so get outside! It may be an inconvenience for awhile, but it will pay off if you use they money to get those student loans paid. You may have to upgrade before you get the loans paid off, but the longer you can stay where you are the better.

  4. Kiki Says:

    And i forgot to say welcome!

  5. snafu Says:

    Welcome to SA. You've had some great suggestions. Infants are quite portable, could bassinet shift between the room you're in during the day and living rm or your bdrm at night? How do you feel about hand-me-downs from friends or relatives? Would you be offended using gently used items from Goodwill or Thrift shops? Coupons are valuable for diapers from a variety of sources.

    I've found giving every dollar a 'job' made a really big difference. While most non discretionary costs are paid by either on-line or automatic, electronic payment, discretionary spending like food, entertainment, clothes, grooming products etc are better paid by cash. I lined up jars atop the fridge and put in cash I thought appropriate for each category. Once the money was gone, so was spending in that category, until the next payday. All receipts were shoved in the jar and tracked on paper. My best tricks were to make my own cleaning products by following instructions on You Tube. The do a better job than the super expensive brand name products. 2nd suggestion is a meal plan for best possible nutrition for least cost, simple and efficient.

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