To SAH or not? Budget included!

[Sweet_Southern_Mama]

I wanted to get honest opinions from people here. We are expecting in July, and I'm seriously considering leaving my job to become a SAHM. Right now I work p/t and bring home 250-270/wk. Good child care would be about 150 for an infant so I would have about $100 left over. I'm just not sure $400/mo is worth being away from my son for 25 hours a week.

DH is a teacher. He will be tenured next month, so his job will be guaranteed. We have $5,500 in a savings account for emergencies/job loss. Obviously job loss wouldn't be a concern after he is tenured.

I've worked up our budget and over-estimated on most things. Its very tight, but does not go over his monthly income and includes saving 10%. I think it could be possible to be flexible w/ the saving once he is tenured. We could use that monthly amount for other things if necessary.

I know some of you are going to stroke out at the amounts, but we live in a very low cost-of-living area and these are very accurate. We also live in a new 1300 sq ft house and it is VERY well insulated.

So, here is our budget:

DH's monthly income: 2,563.00 (does not vary and increases by a bit each year)

Mortgage 689
Savings 250
Tithes 250
Electric 100
Life Insurance 128
cable & internet 120
cell phones 130 (should be able to lower by $20/month soon)
Water 25
Groceries, etc 400 (everything we buy at the store such as food, toiletries, etc)
Car 240
Car insurance 60
Gas for cars 150
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Okay, ladies. Give it to me straight. Am I really reaching with this one or is it reasonable? I will take complete honesty, even if it is not pretty.

My fear is that we can do it, but that we will be absolutely miserable.

[JrandMdB]

Hi there.. I am a SAHM. I have 3 sons and my hubby makes almost the exact same amount as your hubby does. We live in a low cost rural area in general as well so to answer you.. Yes, you can do this. You are allowing for a savings which is very important incase of some type of emergency. The only allowances I dont see is.. diapers, formulas (unless you are breast feeding of course). Those items alone are not cheap.. and you will need to allow for clothing for all of you, especially a newborn considering they outgrow clothing so fast. Otherwise.. you can do this. You just have to pinch pinch pinch and be sure to think before you buy anything that isnt part of your budget. Do you have credit card debt? If not.. even better! GL!

[melodyjg]

Honestly.....I think you will be miserable as you say! It is too tight and leaves you no money for anything except for bills basically and I will tell you this much. I have been married for 25 years in June and there is ALWAYS something every month that you aren't expecting and with the budget you have above you will be hitting your savings for all those unexpected expenses.

Sorry to be a downer but you really need to think seriously about your budget and if you have the discipline to live by it. Maybe get a part time night job while your husband is home with the baby??

Congrats on your first baby

[Sweet_Southern_Mama]

Thanks for your response! I'm just having a hard time estimating costs for the baby since I haven't done this before. I used the stock-pile guide here to stock-pile diapers until potty training. I am determined to breastfeed (one of the reasons I really want to SAH). That leaves clothing and I buy almost everything second-hand, but it still isn't reflected in the budget :(

We don't have any credit card debt and we owe about 8,000 on our car. I'm hoping to get a lot of that paid down by the time the baby gets here.

[CW&M Mom]

I don't think it is enough either...but I wouldn't put my kid in daycare for just to get $400 a month either.

I'd probably look into how else you can bring money into the household without having to use daycare.

Start stockpiling now...and remember...if you do quit your job...you will probably get back more in taxes and your husband will be able to go up in deductions.

[Sweet_Southern_Mama]

Thanks Melody. This is what I'm afraid of. I think I can re-arrange my work schedule to 3 days a week and possibly cut child care costs. A couple of the in-home child care centers around here only charge for days the child actually attends. I'm just concerned about the quality of care when childcare is "cheap."

[Sweet_Southern_Mama]

Thanks CW&M Mom! Doing the taxes today was exactly what caused me to bring up the discussion w/ DH again. I have a journalism degree, so I can write for Associated Content & some other sites to bring in a little bit of money. Hopefully I'll eventually get a Freelance writing job.

[JrandMdB]

In response to another poster about being miserable at home.. I have been at home for 4 years now and I am far from miserable. I come and go as I please and because I save so much in couponing I am capable of buying what I want most times. We went on a cruise to the Bahamas 2 years ago and we are going to Las Vegas this summer. I also just bought a 2011 car this week. I still say that it can be done.. I do it every week. You just have to want it bad enough to make it work. GL in your decision.. whatever it may be!

[motherofmolly]

i think it is doable, if you can find some extra work to do here and there. i would consider working a part time job while dh is home...even if it is for a couple days a week. to help make up for your income.

i stay at home with two. dh would like to make it three, but i refuse until we get a bigger house...we have outgrown this one. it isnt hard to find ways to save here and there and to make a few extra bucks. even little things like selling a craft, growing your own veggies, cleaning houses, hauling junk, etc. writing for associated content would be great...i believe if you look more there are a few other places you could do some small work online for with your degree.

[motherofmolly]

second thought on this subject, if dh is a teacher, does he have summer's off? you could easily pick up a full time summer job and save that money for year round expenses.