“Im worried our cashflow isnt enough”: I have no car payments, no credit card debt, and $2300 left over each month. How much do you spend on your kids monthly?

Hi Money Minder,

Money Minder Help Needed

My husband and I are itching to start a family here in Colorado. We’ve got no car payments, credit card debt, or student loans. Together, we’re bringing in a cool $150,000 a year, with $2,300 leftover every month. Plus, we lucked out with my retired MIL who’s ready and willing to babysit when needed.

We’re saving up heaps and aiming for $40,000 stashed away before we dive into parenthood. But I’ve been stressing about whether our cash flow will cut it. After scouring the internet high and low, I’ve come up empty-handed.

So, I’ve gotta ask: how much do you usually spend on your kiddos every month?

Farewell, Seeking Advice

Response from THE MONEY MINDER: Thank you for reaching out to us. We are here to help you manage your finances and achieve your financial goals. Please feel free to ask any questions or share any concerns you may have. We look forward to assisting you in any way we can.

Hello There,

Hi there,

Firstly, I want to commend you on your proactive approach to planning for starting a family. It’s great to hear that you both have a solid financial foundation with no outstanding debts and a surplus at the end of each month. It’s also wonderful that your mother-in-law will be able to help with childcare once your bundle of joy arrives.

Regarding your concern about cash flow, it’s essential to calculate potential expenses related to having a child to determine how much you might need. While the cost of raising a child can vary greatly depending on factors such as location and lifestyle choices, developing a budget with basic necessities like diapers, formula (if needed), clothing, medical expenses, and any unexpected costs can give you a clearer picture.

Starting with your $40k savings goal is a wise step, and it shows your commitment to being financially prepared. As you start trying to conceive and ultimately expand your family, consider continuing to save and building an emergency fund to cover any unforeseen expenses that may arise.

It’s also helpful to explore cost-saving strategies such as buying second-hand baby items, utilizing free community resources, and creating a realistic budget that aligns with your income and anticipated expenses. Remember that it’s okay to adjust your budget as needed once your little one arrives to ensure financial stability.

In conclusion, it sounds like you’re on the right track with your financial planning for starting a family. By continuing to save, budget wisely, and prepare for potential expenses, you’re setting yourself up for success. Don’t hesitate to seek advice from financial professionals or parenting communities for additional guidance tailored to your specific situation.

Best of luck on your journey to parenthood!

Farewell from THE MONEY MINDER.