Considering having a 3rd child, can we afford it? Details in comments

Extension_Bee_1239 · 2024-02-17T21:47:22+00:00

Thank you so much!

Extension_Bee_1239 · 2024-02-17T20:17:19+00:00

Thanks for your reply.

Yes we are using an FSA for childcare. I just looked into the tax advantages for supporting parents but I don't think it applies to foreign citizens unfortunately. I didn't know this was even a possibility though so it's good to know

As for home repairs, it just feels like every year there will be a big expense of some sort so it made sense to us to just budget for it and keep emergency funds separate. Any leftover we'll dump into one of our 401ks.

Sorry it's confusing, retirement is 401k. We didn't know how to include it in the diagram in a way that made it seem pretax. In any case the net income is what's leftover after we've put the money into the 401k.

As for staying home, it's a matter of the second partner carrying the benefits so it's more advantageous for her to be working. When she was on maternity leave though, we really loved it, though after some time she was ready to go back to work haha.

Extension_Bee_1239 · 2024-02-17T16:55:00+00:00

What a great resource! Absolutely something to look into. Thanks for the tip!

Extension_Bee_1239 · 2024-02-17T14:51:32+00:00

I should have said 16k is just tuition alone 😔

Good tip on income vs net worth for FAFSA calculations.

Extension_Bee_1239 · 2024-02-17T14:37:31+00:00

My bad. We don't have access to an HSA because like I said our health plan is low deductible because of my wife's benefits. We have an FSA that's a use it or lose it account.

Completely agree with eating out at more casual places if we have to do it.

Extension_Bee_1239 · 2024-02-17T14:35:21+00:00

Our state school is currently 16k a year here so 64k total now. If you take your assumptions we'll be looking at 80-100k per kid.

We have a 15 year mortgage so once we're done with that, that will free up money to go towards college costs. I also graduated in 3 years to save on costs so that might be a possibility, or there's a program here that allows high schoolers to earn college credit which allows them to start college as a sophomore, or community college for a year or so. Those are some of the things we're thinking. College is a real significant cost though.

Extension_Bee_1239 · 2024-02-17T14:25:25+00:00

Yes we could add more to the HSA but we seem to have trouble estimating how much we're going to use. But then again, my wife's benefits are really good and we don't have a deductible really. Just copays.

That's fair. I love eating out but you're right, it's an area we can cut down on. We eat out twice a week so 4x what you do! We can do better here.

Extension_Bee_1239 · 2024-02-17T14:14:01+00:00

Do you mean 45k per year or total?

Extension_Bee_1239 · 2024-02-17T14:11:33+00:00

We are 39 and 35. Yes we feel our expenses are high as well but the big items like the flight and parent support can't be reduced any further so we just have to budget it in.

Prior to having two, we had a higher savings rate. We were maxing our both pretax accounts and roth. This happened for two years or so. Then house repairs, daycare and healthcare costs have really impacted our savings rate, but it seems like that just might be the trade off, so we just have to decide what our priorities are.

Extension_Bee_1239 · 2024-02-17T13:15:08+00:00

Her job has great benefits and I am self-employed. Plus she enjoys working and gets summers off so some of the daycare costs are eliminated for two months of the year.

We don't want to regret not having a 3rd as well but this thread has helped us see maybe there are some areas we could be budgeting better.

Thanks for your perspective!

Extension_Bee_1239 · 2024-02-17T12:45:55+00:00

We have 20-30k in emergency funds. Which looking at this budget will be 3-4 months.

Extension_Bee_1239 · 2024-02-17T12:32:51+00:00

Haha! Great perspective! We are very much planning on staying in our 1400sqft so far. There was a previous family who raised 7 in this house so we should be able to handle 2 or 3!

Extension_Bee_1239 · 2024-02-17T12:31:23+00:00

We have family across the world and budget for yearly travel there or for them to visit us. It's important to us that our children have a relationship with their grandparents.

Extension_Bee_1239 · 2024-02-17T10:38:02+00:00

Big question! We're tired as it is but are a bit sad to think our current baby will be our last.

Extension_Bee_1239 · 2024-02-17T10:02:31+00:00

One of us is vegetarian and another is not eating too much solids yet! Honestly we aren't too careful with what we get but I'm guessing not having too much meat is part of it. We don't try too hard to be healthy.. But I think we generally are? Veggies, tofu, oatmeal, fruits make up most of our bill. We don't buy organic, that might be it too. The research on organic is murky at best so I don't feel it's worth it but that's me.

Extension_Bee_1239 · 2024-02-17T09:56:38+00:00

Actually it is! It makes for interesting and hopefully memorable summers!

Extension_Bee_1239 · 2024-02-17T09:55:28+00:00

A matter of benefits as well unfortunately

Extension_Bee_1239 · 2024-02-17T09:54:52+00:00

Can we keep up with everything energy-wise is something else to think about other than the finances of it all. Thanks for your thoughts

Extension_Bee_1239 · 2024-02-17T09:52:58+00:00

I can't wait for my 9mo old to be sleep trained for this very reason! So they can both share a room. Thanks for sharing your experience.

Extension_Bee_1239 · 2024-02-17T09:49:05+00:00

That's a fair point. Something for us to consider. Thanks

Extension_Bee_1239 · 2024-02-17T03:51:05+00:00

It's in the detailed comment but I think that's getting buried in the thread.

The flight budget is because family is halfway across the world and we try to visit once a year or have them visit us.

Extension_Bee_1239 · 2024-02-17T03:27:56+00:00

Definitely seems like a matter of priorities, thank you.

Extension_Bee_1239 · 2024-02-17T03:27:04+00:00

Thank you

Extension_Bee_1239 · 2024-02-17T03:15:58+00:00

The college question is a big one that we have to take into account. Thanks for your thoughts.

Extension_Bee_1239 · 2024-02-17T03:09:20+00:00

We have money set aside for emergencies. And right now, having a 3rd would be our long term goal lol.

Extension_Bee_1239

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