Reduction in Income, while we be ok?

[cptacek]

Originally Posted by disneysteve

I don't necessarily disagree but just to give another view...

My wife and I were trying to conceive for months without success. My wife really felt that part of the problem was all the stress she had at work (she was a retail manager). She finally called me in tears one day in early December and said she couldn't do it anymore and wasn't about to go through another holiday season. I told her to quit and she did. She was pregnant less than a month later. Coincidence? Who knows.

I agree with this. Depending on the job, stress level, and other scheduling details, it may affect her fertility. In general, probably not a problem, but it is a possibility.

[Eric80]

for this to be resolved i suggest that maybe you go and speak to your citizens advice or even go and see a debt advisor where they will be able to suggest a repayment plan (IVA) or even suggest to consolidate your debt.

Originally Posted by Stevenm122084

My wife is leaving her job of 6 years to hopefully be a stay at home wife, and one day(soon) we hope to have children.

My gross income is $52,000(about 43,850 net) - her net income is about 21,750, which by December 30th will be no more. Since she is technically being laid off we are looking to draw unemployment, which in my state is about $275 a week up to about $3700(I think, Florida) This will go streight to savings.

We have a total monthly expense of about $2350-$2500, I get paid weekly so we will have money each week, but she is concerned it won't be enough - I have confidence it will be enought to get by comfortable but won't be enough to support 2 children in the future. With only my income we are left with about $250 a week after bills. From this will come food, gas, and other needs and wants(shopping, movies, dining out - this to a minimum). With all this, living comfortably would be cutting in close - any extra expense would cause insecurity. My guess is that I'm looking forward to alot of arguments about money... I worked my butt off to get a job that pays this well - I don't know what else to do.

If we pay her car off(which we'll have about $6,500 in savings at the end of the year) and cancel my gym membership, these being the two imidiate things we can do - we'll have about $70 more a week. We have over $200 in credit card bills(maybe $3000 in cc debt) - even paying these off will only add about $50 more a week and it would wipe out our savings(not something I'm looking at doing seriously - maybe just one or two cards). We have various needs around the house - A/C repair(or replaced, crossing my fingers it doesn't need to be), a new roof - its in good condition, but the insurance req a new roof ever 25 years... jerks.

With all this, I work as a FTC(Full-Time Contractor) not as a FTE - at the end of my term I could be looking for a new job... I really don't want to tell my wife she needs to find another job. I really want to have kids and have a family. Why is it so hard to make it in today's society? Am I overlooking something, am I over-reacting? I don't know what to do.... any advice?

[dojo]

That's been done in some countries and, coming from a country that's been under 50 years of comunism, let me tell you this is one of the worst ideas I ever read in a forum. How would you like it to have someone take YOUR BUSINESS and YOUR MONEY to give it to the lazy ones? Because most of the time people who are poor are lazy and don't know how to handle the money. We had this in Romania tens of years ago and people lost EVERYTHING for the 'common good'. Never say something like this, when you have absolutely no idea how many lives have been destroyed.

[charlieh]

No job is secure including yours, and particularly if you want to have a family the having two income streams would leave the two of you in a much safer situation. If you are barely getting by as is with one income stream and then relying on that entirely with more mouths to feel you are leaving yourself open to real problems if that income stream were to disappear.
I would encourage your wife to find another job at least temporarily until the babies come along, and even then to continue at least in a part time capacity if that is possible. Are there work from home opportunities or other remote type work that she would be open to? That could leave you in a much better financial position. But if not that then remaining employed until you reach a greater level of security and liquidity would be smart.

[BMEPhDinCO]

Lots of good advice so far, I'm just going to lay out your post and then reply with a few more thoughts.

1. You have a take home of $3,654 per month (not including wife)

2. You have expenses of $2,500 per month (high end)

3. Thus, you should have $1,154 every month for savings. - Here is where I lost you, does your $2,500 NOT include groceries, gas, etc?? If you can break down the expenses better, we can help you cut back (because $2,500 should be more than enough to cover those as well as other stuff).

I figure you have
$6,500 in car debt
$3,000 in CC debt
=$9,500 in debt

So.... if you budget $254 for gas (generous, as we only spend $250 and commute 60 mi per day combined) and $400 for groceries (again, we do this for two), that should still leave you with $500 a month for savings.

If you put that into your CC bills, that will be paid off in 6 months (and free up another $50 a week). If you then pay that $700 to the car, you'll have that paid off in another 8 months. Then save up the $900 for 4 months so that you'll have a better cushion for the baby ($3,600). That's 18 months from now.

By my estimate, if your wife does not bring in any money, you can try for a child 9 months from now and by the time they arrive, everything will be in much better shape.

Yes, I realize I left out the "fun needs and wants" - but again, I don't know what is going into the $2,500 and that's with no income from your wife.

My recommendation would be for your wife to start looking for another job NOW, hopefully one with health insurance (check starbucks, for example, or wal-mart). Sock all that money into an emergency fund for your new family, house repairs, etc. Live bare-bones for the next 18 months, then slowly let up as you welcome the start of your family. Once the first one is older, and you have more savings, then go for baby #2.

Be smart and you'll be fine on your income.