New Dad - how did it change your finances and what was your approach?

@mila Nah, lifestyle creep is a bitch. And they probably bought all new baby stuff rather than second hand.

There is lots they can do like sell a car, cancel hello fresh, cancel most/all their streaming services, switch mobiles away from Telstra. But until they do that they’ll feel the pinch.

Though the difference is that once they shift their lifestyle down a notch they’ll be fine. Unlike the couple on 80k combined.
 
@regent It’s interesting how every index of my QoL has gone down (sleep, disposable income, partner intimacy etc) and yet when kiddo smiles at me at the end of a long hard day, everything seems fine… for just that brief second
 
@christine7788 Yep without that brief second you’d be screwed, that’s why it’s a good thing to be sure that you want them before having them. Not always the case, unfortunately.
 
@christine7788 you may want to bump up life insurance inside super as you have more obligations now. having a kid counts a “life event” and avoids some of the normal checks etc so don’t miss the opportunity.
 
@smileagain It’s mind boggling how having a kid changes everything especially financial arrangements. My Life/TPD/income protection is currently costing me about 4k/year so kiddo and spouse are well covered but not lucrative enough that the wife will off me in my sleep 😝
 
@christine7788 Nothing like mental leaps and sleep regression.

I have found that having a kid isn't really that expensive. Sure it costs a bit more but having a "professional" level income it's not like it's pay check to paycheck.

We dipped into savings until my wife went back to work. She actually had an identity crisis and was desperate to go work after a year.

We are lucky, I was able to work nights and grandparents helped until we were ready to put the kids in daycare (at 18 months).

Having 2 incomes is vastly better.
 
@resjudicata I must admit I’m struggling a little bit to understand how a super high earning couple are “feeling the pinch” after just a few months of parenthood. I bought second hand baby everything, used my savings for years and took years off work. I’m back working full-time now, actually doing the best I’ve ever done in my career (I think being a parent has sharpened my skills in all sorts of ways - time management! - that are useful in paid employment) and I’m doing fine. It sounds like lifestyle creep and high expectations is affecting this couple. It’s hard to “go backwards” whereas I’ve been going upwards, so it doesn’t feel bad at all.
 
@christine7788 Look at part time work until they start school, really important to spend time with them the first few years.

Think about private or public high school,do you want to spend $50k/y/kids for private? If so, plan for it now.
Have you done your Will?
 
@amicusdei Perth based, bought into a top public school catchment area. Of course would love to send kiddo to private if finances allow but not a top priority at present (might change along the way).
Agree on being physically and mentally present during the first few tender years even months. They develop so much even within a week.
 
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