Baby Budget

[jIM_Ohio]

Here is the budget I think we will use with arrival of the babies at home. Thoughts?

Expense Amount

Mortgage $2,183.71
2nd mortgage $382.99
Homeowners Accociation $440.00
guardian $33.80
Gas for Car $70.00
Gas for Car $80.00
Hair $100.00
Life insurance $128.00
Grocery $160.00
Phone $78.00
Trash-Rumpke $54.00
Electric $300.00
Water $60.00
Direct TV $80.00
Cell Phone $100.00
IRA DH $415.00
IRA-DW $125.00
Car Payment 1- Ridgeline $700.00
Car Payment 2- Accord $320.00
Car Insurance $101.00
diapers $300.00
formula $70.00
Notes:
Wife gets paid bi weekly, this does not account for the 2 extra paychecks per year (meaning those two checks cover car insurance and home owners association).

We have 12k in laddered CDs (3 CDs, 4k each, 90 day duration). Another 1k in PRPFX, hoping to build that up slowly with extra income.

I have 11% going to 401k. I still need to run the numbers dropping this to 6% (max out the match) then fully funding both Roths.

Taxable income on tax return should be around 66k (15% bracket). The 6k tax return we anticipated is being added into my wife's check ($250 per check) by raising her exemptions from 0 to 9. This is already accounted for.

[sweeps]

$160/month for groceries?

[jIM_Ohio]

Originally Posted by sweeps

$160/month for groceries?

YES

some of the payments are 52X, some are 12X.
Diapers are 12X, forumula is 52X. Gas is 52X. Groceries is 12X.

$160 is for just wife and I.

[Caoineag]

Okay, I am pretty sure I am missing something here. 66k doesn't cover everything you have listed. Your groceries are exceptionally cheap given the rest of your numbers and I don't see any additional savings or personal spend money. Maybe you guys don't spend a lot of money but I assume you will have some clothing expenses for baby, probably for the mom as well and various other household expenses that aren't accounted for.

I guess my questions is what am I missing and what are you asking?

[sweeps]

I guess I need to take some tips from you on the groceries, Jim. I even scratch my head when people on here say they can get their grocery budget down to $300. I just don't see how it's possible unless maybe you're eating Aldi-brand macaroni and cheese at every meal.

Anyway, I agree with Caoineag. Don't forget about other baby items -- clothes, shoes, pacifiers, bottles and nipples, medical supplies (Infant Tylenol, gas drops, vitamins, etc.), doctor copays, baby shampoo, baby lotion, baby wipes, those cute sunglasses that you just have to buy, etc.

Also be aware formula will ramp up quite a bit between 6 mos and a year. And you'll stop getting those coupons and checks in the mail that offset some of the cost.

[noppenbd]

Diapers (unless you are buying cloth) should not be that much. We bought diapers from Amazon and they were around $50 a month at most. Doubling that for twins is only $100. But as others said you will be buying other stuff so the $300 may be ok for everything baby.

[aida2003]

Originally Posted by sweeps

I even Also be aware formula will ramp up quite a bit between 6 mos and a year. And you'll stop getting those coupons and checks in the mail that offset some of the cost.

Off topic probably: I was wondering if anyone knew which website do I have to register for formula checks/coupons. And how long in advance should I do that so I start receiving them in August? We used Enfamil for 6months for DD, I recall.

Thanks.

[Caoineag]

Originally Posted by sweeps

I guess I need to take some tips from you on the groceries, Jim. I even scratch my head when people on here say they can get their grocery budget down to $300. I just don't see how it's possible unless maybe you're eating Aldi-brand macaroni and cheese at every meal.

.

I am one of the $300 per month for 2 people. We eat extremely well but cook almost everything from scratch. Lots of sale shopping as well and buying meat in bulk and breaking it down and packaging ourselves.

I think I need to take lessons too though because I couldn't manage $160 per month...

[jIM_Ohio]

wife is a great cook. we generally only buy what is on sale, then stock up. Pantry is full as well.

$80 every two weeks will go quite far.

[cashqueen]

Originally Posted by aida2003

Off topic probably: I was wondering if anyone knew which website do I have to register for formula checks/coupons. And how long in advance should I do that so I start receiving them in August? We used Enfamil for 6months for DD, I recall.

Thanks.

go straight to Enfamil You should be able to register there. I'd do it ASAP.

[fruitbowlk]

I shop a BJ's for Pampers. They cost me $23 a pack I buy pampers maybe every other month. Have your wife thought about nursing? Free milk.

[Spud]

Originally Posted by aida2003

Off topic probably: I was wondering if anyone knew which website do I have to register for formula checks/coupons. And how long in advance should I do that so I start receiving them in August? We used Enfamil for 6months for DD, I recall.

Thanks.

Aida - Sign up with each formula company you want to have checks come from. So enfamil.com, similac.com etc. I would sign up 1-2 months before your due date. You'll get some free sample cans and checks will come. I still get checks every once in a while and my baby is 15 months. Also, you can re-sign up for more checks. I didn't use much formula, but I was glad to have the checks for the stuff I did use. That stuff is 3x as expensive as cow's milk.

Jim - I can't believe how cheap your groceries are. You guys must eat teeny tiny meals.

[MonkeyMama]

My initial thought was I'd switch those diaper and formula #s. But that explains it - you said formula was weekly? MAkes more sense.

Diapers should be nowhere near $300/month though. Color me confused... WE paid $100/month for cloth diaper service for 2 kids and I was aware it was much more expensive than just going disposable. (Well much more expensive when we had one in diapers - the 2 were a deal with the service probably).

So my only input is you probably will not need to spend near that much in diapers. Keep in mind for the first few weeks they need something like 10 dispers a day (Each). This goes down considerably with time too (certainly a bigger expense in the very beginning. Not sure how preemies may be different).

Formula is the same way. In a few months they will supplement with other foods and isn't at age 1 when they switch to milk? (Maybe later with preemies?)

Of course this stuff quickly gives way to expenses like activities, daycare/preschool, orthodontia, college (much more in between I am sure). So nothing wrong with setting aside large amounts for that stuff. There will always be something. In that regards you may be pleasantly surprised with diaper costs, but surprised by other little things.

------------------------------------

Canoeaig - He said $66k taxable income. I think my taxable income is about half what I bring home. He's got 2 new deductions, so explains much.

[sounderella]

From my experience, Sam's Club (Member's Mark) diapers were the best deal plus they worked great! Walmart and Kroger brand diapers work well too but you don't get as many for the price.

Also, if you do formula (and this all depends if they don't have stomach issues) Sam's Club (Member's Mark) formula was the best deal we found. It = about 2 cans - 21/2 cans of regular sized formula for $19.99. Our dr said it was exactly the same as brand name formula plus it had more of the DHA in it for brain development. Walmart has their generic which is good too but again you don't get the size for the money

[jIM_Ohio]

we plan on doing the sams club thing for diapers. The formula we need is for preemies, so for 6 months we have to follow strict doctors orders (at least for DS2).

[Caoineag]

Thanks Monkeymama, I was definitely confused. I was assuming AGI but taxable is actually AGI - deductions.

[jIM_Ohio]

Originally Posted by Caoineag

Okay, I am pretty sure I am missing something here. 66k doesn't cover everything you have listed. Your groceries are exceptionally cheap given the rest of your numbers and I don't see any additional savings or personal spend money. Maybe you guys don't spend a lot of money but I assume you will have some clothing expenses for baby, probably for the mom as well and various other household expenses that aren't accounted for.

I guess my questions is what am I missing and what are you asking?

40k in intemized deductions between mortgage and small business helps.

Expenses are kept low- most vacations are funded from a second job I have which pays cash and is not budgeted for.

As far as kids activities, the way I see it two things will happen short term- the 300 for diapers and 700 for my truck will disappear, creating $1000/month for kids activities and paying down the 2nd mortgage. Within 5 years $700/month pays that off. Then the $400/month for that gets added in and we can think about a college fund or two and a new car fund as well.

We also don't have raises factored in, the way I see it raises will kick in where the deductions start dropping off (I cannot forsee 40k of deductions sustaining for a long time).

[mom-from-missouri]

Is the homeowners thing monthly?? or yearly??

Have you checked into a diaper service???
I always used cloth diapers, but for awhile I used a diaper service because they ony charged $40 a month. It was worth it to pay the $40 a month for unlimited diapers for 3 little girls.

[jIM_Ohio]

Homeowners is once per year, due in January.
disposable diapers will be used- we can afford it and it is simpler for wife and I.

[TBH]

Am I missing something?

What about daycare? It sounds like both of you work.