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

[stonefrogg84]

@thomasmoore Nappies, formula/feeding supplies, clothing. Babies dont cost a lot. Putting on a show for other parents does though

 

[resjudicata]

@christine7788 I would really research into whether your spouse returning as early as 12 months is worth it when you add up your child being constantly sick, one of you having to constantly take leave etc. Not to mention childcare fees and outsourcing things like meals and cleaning because you’re time poor. Can’t get those early years back

 

[maxsteel]

@resjudicata You forgot in your "is it worth it" the keeping continuity in your career. At the hight of our childcare/out of school care bills, me working have us around $100 extra a week to if I wasn't, and we were getting government assistance. However, 10 years out of the workforce (from the birth of my eldest until the youngest turned 5) would have completely diminished my earning capacity. Those few years of sacrifice are reaping the benefits now.

 

[jerwilli33]

@maxsteel and widening the super gap, too.

 

[christine7788]

@maxsteel Spouse has reached the “top” of her career. Financially would still come out on top weighing up daycare vs returning to work.
Whether worth it working vs missing out those early milestones is a different matter altogether and is an individual choice eg. Seeing their first smile/first time saying mama or papa.

My career is still on the upward trajectory (financially and career progression wise) so would still need to be committed full time.

 

[maxsteel]

@christine7788 12 months maternity leave means you will not miss out on these. Options of part-time work for 12 months after that in most awards means a good balance can be had for many

 

[ocdandme]

@resjudicata Man we got so lucky I had so much leave balance cause of covid but when my kid went into daycare we/she was sick and unable to go to daycare at least everyfortnight

 

[christine7788]

@ocdandme Ain’t that the bloody truth! Daycare is a cesspool of germs.

 

[shaunmarsh007]

@christine7788 Live like you earn 40k less that what you are on

 

[planets]

@christine7788 Have a 12 month old and another on the way. We were DINK up until 30 without a care in the world.

Half way through the first pregnancy I asked for a 40% pay increase. I got it. We then sold off our "Fancy" for us house and have bought land to downgrade. It's worked well as there is no rush to go back to work for my Wife.

 

[berkeleytribe]

@christine7788 25 days a dad at the moment, can't say really. Taking 2 months LSL but will likely stay at home till September or November. Wife wants me off for 6 months which gives me the financial heebie jeebies, especially given we've got a land and construction loan coming up as well as an mortgage. We both have income coming in but expenses are up with all the baby related accoutrement. Only getting paid 38hrs on LSL when I normally bring in an income from 50hrs is a bit noticeable.

 

[chin]

@christine7788 The wake up every hour - we went through that with our 1st until she was 20mths. 10-15 times a night … every.bloody.night and then up at 5am like clock work!
Financially we had saved approx $30k to allow my wife to take a full year off whilst still managing to pay a modest mortgage

 

[amarie07]

@chin Takes a village

 

[resjudicata]

@christine7788 When my wife told her employer she was pregnant with our first child, she was let go shortly afterwards.

My wife earned about 30% more than me at the time. Nothing made a dent in our finances more than losing her income. Also, it was during the GFC and my work was also laying off people every week. I am very thankful I managed to hold on to my job but it was quite stressful until I found another more secure position about 6 months after my eldest was born.

Knowing that you've suddenly become the sole income earner and that you're about to have another person to pay for was a slap in the face, but we got there. Hard, serious budgeting for a while. Luxuries went from overseas holidays to eating out at the pub once every 6 weeks or so. We learned how to make the most of all the free stuff out there. Using the library instead of buying books. Pirating instead of renting videos (yes, blockbuster was still around in 2008). Making do with one cheap car. And not being too proud to accept "gifts" (charity) from my parents when our fridge died or our car needed repairs.

Also, I got much more creative about income sources. My wife also discovered she's quite a natural at trading, and she's used that to supplement our income ever since.

All I can say is that you do adjust and that it will not be hard forever.

 

[martin12]

@christine7788 Raising kids doesn't have to be expensive. Look for cheaper brands and stuff.

For the love of all things shiny - don't get in a pissing contest with every other new family for the best 1st birthday party. They don't need a jumpy castle, clown or juggler, or facepainting.

Best advice I have is to spend wholesome time with them once they start to interact with you around 12-36 months. Consider going part-time if you can work it.

Remember they are an investment that just requires deposits every day but the rewards to the heart are priceless in the future. Atleast that's what they say on the bottle/website

 

[jennifer_savannah]

@christine7788 I had a secret - my partner works in childcare and hence we get a huge discount to our childcare fees. It's actually so disgusting but also feels like a cheat code to life (with kids).

If we didn't have that it'd be much like the situation you're in now.