Even though we have only been expecting for a little over 3 months, we started planning for our family years ago. It doesn’t take a lot of research to know kids are expensive. Between insurance and child care alone it will cost us around $1,400 a month.
Just the thought of coming up with that amount of money got my mind swirling. We both wanted to start a family eventually so we decided to take control of our situation.
3 years ago, we did an exercise from a book called Smart Couples Finish Rich, when comparing our results we found out we shared two very important values: Family and Security.
Since we had about a -$230,000 Net Worth, and were saving next to nothing, we were barely able to keep ourselves afloat financially. Taking care of a baby would have required drastic changes to our lifestyle. We would have struggled to pay for health insurance and child care.
We both come from tight knit families and wanted to have one of our own. In order to start our Family, we felt Security had to come first. Money plays a huge role in security, at a very basic level it puts a roof over your head and food on your table. Our view of security went much deeper, we wanted to be able to comfortably cover any costs and still save for our future.
After Security and Family – Freedom was the ultimate target. We didn’t want to sacrifice our future freedom by not being able to save for our (hopefully) early retirement. Eventually our children will grow up, move out and start their own families. We don’t want to start saving for our future when our kids gone (if you can’t tell I am a planner).
For the rest of this post – head over to The Practical Saver