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Crazy Year

January 6th, 2019 at 09:19 am

So it's been a crazy year. My financial plans kind of derailed a bit focusing on getting a new job, which I did. It's a much more sound job and I'm very comfortable there after six months. One HUGE surprise was a pregnancy. I am currently due very soon. My husband and I are over the moon. This has been a long, private and painful road for us.

With the baby coming, I've got some goals for the road ahead. One thing I have been doing in preparation is purchasing used cloth diapers (the fancier newborn ones for the first month or two) and will transition to more classic cloth once he's a little larger. I'm also going to do cloth wipes as well. I've also been purchasing some used baby clothes and items that I know will be very short lived. My plan is to continue this throughout his first few years and as feasible.

So....financial goals. The debt snowball/snowflake method just isn't working for me. I can pay off a loan because it is structured. So my tactic is now to pay a specific amount per month to each account with a target payoff date. I ran two financial scenarios using an online credit calculator for each account: 36 month payoff and 24 month payoff. Throwing an extra $400 per month at the debt will help me pay off all accounts in 24 months, so I have decided to work with that plan. If for some reason I find myself unable to keep up, I have the finances already worked out for the 36 plan. Right now, I'm sticking with aggressive.

I've also decided to save a specific amount to my emergency fund every month. Very much like another blogger here, Veronak, I feel more comfortable with some padding. So my goal is $700 per month for a total of $8400. This is not inclusive of my 52 week challenge and Christmas challenge accounts.

I reconfigured my tried and true excel budgeting spreadsheet for the year to include tracking expenditures. I also opened a separate checking account where my allocated money for spending every month (gas and groceries) is direct deposited every pay period separately from my bills. This will make it REALLY easy to track my spending as it won't get mixed in with any regularly scheduled bills.

I am looking forward to a really great year. I've got a stash of baby clothes that I hope will help get us through this first year with a few additions here and there. I intend to breastfeed as long as possible and cloth diaper. Some personal goals, I am working on composting through my village's program, reducing overall waste, decluttering and reusing as much as possible! My car is still running well with over 150k miles and is completely paid for! I am researching electric options for when I do decide to buy new, which hopefully will not be until the unsecured debt total is paid off.

Cheers to 2019!

6 Responses to “Crazy Year”

  1. CB in the City Says:

    When I had my babies, I also used cloth diapers, breastfed, and used pre-owned baby clothes and furnishings. It doesn't have to be fantastically expensive to have a child. More expenses come later, of course. Smile

  2. Jenn Says:

    I have the dual checking accounts structure that you describe and it works well for me. My paycheck direct deposit is split among accounts and I never worry about the regular bills like mortgage and Roth IRA contributions since they're on autopay from the account. My accounts are even at separate banks so that a mishap in the expenses account can't impact the bills account.

    Congrats on your new baby after the years of waiting! That's exciting and a good choice on breastfeeding. Not only is it cheapest - it's healthiest for you both.

  3. Debt-free by Thir-ty Says:

    Congrats on your upcoming bundle of joy! Do you worry about paying off debt with the baby on the way? I struggle with that because as much as I want to get rid of debt, I also don't want to be derailed by a huge medical bill should something unforeseen happen.

  4. alliecat79 Says:

    Debt-free, that's why I'm also going to try and stick to an aggressive savings plan. In regards to medical, we are dually insured with very good insurance. We basically pay next to nothing other than what is deducted from our paychecks. It has gotten us through some expensive medical years, for sure. I'm not stressed and I know I need to work on my expenditures. After so many years of this hamster wheel, I just want to be free of it. It will be worth it.

  5. LivingAlmostLarge Says:

    Congratulations when are you due?

  6. rob62521 Says:

    When I was born, my mom used cloth diapers. Most of my clothes and shoes came from a box that my godmother had that her family contributed to -- they all used everything and when the baby outgrew it, it was stored until the next baby came along. As fast as kids grow, I think it is smart to do these things.

    Congrats on your baby!

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