How much $$$

This may be a totally personal question and I completely understand if ppl don't want to answer. I wanted to know if you plan on staying home and you work now, or BTDT moms who have left a job, how much money do you have left over every month after all your expenses with just DH's salary, and do you have a nice savings that you don't touch?

DH and I are trying to figure finances out. DH is a major worrier by nature...I plan on trying to find a job where I can work from home or work a few days in the city and few days at home if possible, but I also want to do this on my time. We can def afford me being out and not going back, but DH is just a worrier and doesn't think we'll have enough left over after all our major expenses.

We have a very very strong savings, and we would have roughly 1200-1400 a month left over after all our major expenses...
What do you guys think?

Thanks!!!

Re: How much $$$

What would that 1200-1400 go for? Is that after groceries, all bills, etc?
If so I think that would be plenty barring some catastrophic event that required a large amount of money.

Re: How much $$$

Pickles, your husband sounds just like mine, he's a total worrywart too.

$1400 is not too shabby, that's what we will have when I'm on maternity leave. But honestly, it depends on what other expenses are left.

Personally, if $1400 is left over every month for savings and small indulgences, I would be comfortable with it. But if you still need to pay for necessities like transportation, utility, groceries, credit card bills, loans, vacation savings, etc. it may not be enough.

Like you, DH and I are very financially secure (we invest/save at least 50% of our net income) but also very cautious at the same time so we may be on the other extreme. :)

Re: How much $$$

Thanks ladies , the only thing the 1400 does NOT include are groceries and gas for the car, but we don't drive a lot.... So I think we'll be fine, I just want DH to be able to calm down!!!! LOL

Re: How much $$$

i think after all expenses 1400 a month is totally do-able. i believe DH and i are going to have 1200 a month after all is said and done

Re: How much $$$

DH is a major worrier as well -
After major bills are paid and our savings gets its monthly deposit, we have about $1500 on DH's salary alone. - Right now we bank mine.

However, right now we only have one car (a modest VW Jetta), are living on one floor of the house (ie: HEATING one floor) b/c the upstairs has not yet been finished/dormered - and the basement is still unfinished -

We have a to do list for our OLD house about 5 pages long and none of the projects are less than $10k - (ie: above basement and upstaris)

We rarely drive anywhere b/c we walk to the train and are both working in the city all day - so gas is not really an issue for us -

And, I don't know what diapers cost

I'm SURE it CAN be done, but I'll be returning to work after 6 months -

I'm a worrier too ........

Re: How much $$$

Thanks ladies, I totally agree with all of you, but DH is sooooo frightened, and not to mention he's in the finance industsry so it's double worrisome for him...We tend to be very very spoiled and I'll fully admit that with both our salaries, we both make a very very strong base and basically it will be taking 50% of our monthly income away..I'm pretty sure I'm going to look for a job to work from a home office since most of my industry is based out on the West Coast, but it may take longer than finding a regular office job, so he's just sweating it right now...I keep telling him we're not going to know how we are until we're fully into it, we've never had a child before and dont' know what our real expenses are going to be other than the ones that are set in stone, mortgage, oil, etc...
His fears are just making me a nutcase

Re: How much $$$

My DH is a total worry wart about finances as well. When I worked FT before DS was born, we literally made nearly the same. 6 months after DS was born I left my FT job and found something where I work 3 days and have a lot of flexibility and can work from home sometimes. We have a pretty strong savings, I think probably 9 months-1 year of all our bills/spending money if neither of us worked. Anyway I think if you have $1400 for groceries, gas, and baby supplies, as well as the dinner out here and there you are fine.

There was a thread over on parenting recently where everyone laid out their monthly baby expenses, so it might help in getting an idea of what a baby costs, but basically I think we pay about $80 in diapers, $140 in formula, $15 for wipes, lotions, etc, $50 for misc – Mind you I have yet to really have to buy much for DS in terms of clothing or toys as everyone else buys or we get a lot of barely used hand me downs for DH & my older siblings kids.

Anyway, when DH and I decided for me to go PT, we knew it would be tight. But we decided what was the worst thing that could happen, its too much for us financially? Then I go back to work FT but in the mean time I get so many extra hours with my DS in the time I am home. I am more relaxed and also get more done around the house as well. I feel that being with your child is a once in a lifetime chance, whether you are with them 1 day or 7 days each minute counts and is irreplaceable.

PS, use your maternity leave as a guide, it will help you to see how your lifestyle begins to change with a child.

Re: How much $$$

Suze Orman was just on Oprah the other day discussing this topic...

She said you need to have at LEAST 8 mths of $ in the bank for ALL montly expenses (including new expense of a baby) to be able to say you can stay home....in case the other person looses their job. I think your having 1200-1400 extra a mth is fine, as long as you have at least 8 mths of savings to cover montly expenses should a layoff occur.

For us, we have a good savings which allows for me to SAHM, and some cushion each mth as well.

Message edited 10/15/2008 12:06:54 PM.

Re: How much $$$

Re: How much $$$

I think you will be fine. That may not be enough for luxuries but more than enough for necessities.

My friend put it like this - you learn to live with less. His wife used to love designer bags and clothes. She doesn't shop as much as she used to. I don't think they've gone on vacation since their baby was born. However, they have a roof over their head, she gets to stay home and watch the baby, and they seem happy.