Today’s post is from our regular Wednesday contributor, Cat.
I’ve already written about how much money you should save before you have a baby, but I didn’t really detail howI came up with $10,000 for a baby fund.
It took a little bit of time and a lot of effort, but all in all, it’s something that anyone can do.
Here’s how:
1. I Worked Two Jobs
Before I became pregnant, I was already planning on making the switch to freelancing full time. June 2013 was the first time that my freelance income exceeded my day job income, and I knew that if I could keep up that pace for around 6 more months then I’d be ready to work for myself.
Of course, working two full time jobs was great for the double income, but it was such hard work during my first trimester that I actually don’t even remember anything I did in August or September. It’s pretty much a huge blur.
Still, I was able to save around $8,000 during that time period simply by living on a strict budget and constantly putting money away in a high yield savings account as soon as I got it.
I’m not saying that people should start a business on the side when you are about to have baby, but I am suggesting that maybe tacking on a part time job at the mall or at a restaurant for a few months before the baby comes will allow you to have the extra spending money that you need. Extra points if you can get your spouse to do this for you if you’re the pregnant one.
2. I Stopped Student Loan Repayment
Well, I didn’t stop paying my student loans cold turkey, but I did drop my payments from $1,000 to $200. Before I got pregnant, I was really, really focused on bringing my total amount of student loan debt below $30,000 by the end of 2013, but after talking with my husband I decided to hold off on it. I hate having the money sitting in savings that could go towards the debt, but my husband wanted to make sure we had as big of a cushion as possible since we have no idea what it will be like to be parents.
3. I Stopped Buying Things For Myself
In addition to working a ton of extra hours and cutting back on student loan payments, I also stopped buying things for myself. My husband and I did exchange Christmas gifts and anniversary gifts, but on the whole we didn’t go out to fancy dinners and really cut back on entertainment spending.
I definitely felt a shift where every time I wanted to buy something, I thought about the twins and if I could use the money for them instead. This was sort of a natural emotion that happened, and it helped to keep things in perspective.
In hindsight, it seems like saving up $10,000 for the twins took no time at all, but when I really think about the last few months and the level of sacrifice and thought that went into the budget, I know that it’s significant.
How do you put away money when you want to save for something big?
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I will usually cut back entertainment spending, because even though it seems small but if I calculate the spending it adds up quickly. Having children requires personal sacrifices but I guess it will be worth it in the end!
$8,000 in savings in a matter of months? You’re my hero Cat!
I must say that when my daughter was born, it’s very seldom that I bought things for myself. Whenever I want to buy something, I need to think over and over if I really need it, my daughter is now my priority now and this way I can save money. Btw, congrats Cat!
We both did #1 and also did #3. We focused all we could on banking as much cash as possible. It was a lot of hard work, but well worth it once the kids came along. Congrats again Cat!
Congrats on the Twins! Before our son was born, we definitely ramped up the savings and tried to cut out excess spending. One reason was because we thought my wife would stay home with the baby for a year (though a job opportunity came up). While it’s great to cut out some excesses…it’s alright to enjoy yourself…it will be A LOT different when the babies arrive! =)
You did great! Saw pictures of those babies too- beautiful! They’re worth every penny and then some!!!
You really did an amazing job at saving for these two bundles of joy! And you were smart to start focusing on them when you did. I know so many people who do not prepare financially until AFTER the babies are born and then you are behind on your finances from the beginning.
You did such a great job saving up, very inspiring. When you have a big goal it really helps you stay focused. I think about my student loans before buying anything for myself. Congrats on the little ones!
“…stopped buying things for myself.” Funny how when kids come along their needs supersede our own. All of sudden those items you were thinking of buying for yourself don’t seem that important anymore.
Sounds like you had a great plan and you were smart to think ahead. Congrats on your little bundles of joy!
Raquel@Practical Cents Aw thank you Raquel! WE are so in love!
Brian @ Luke1428 I know! It was such a natural and obvious transition!!
JourneytoSaving Thanks so very much for the kind words and the congrats. We just love them so much!
blonde_finance Exactly. I’m so Type A lol!
Holly at ClubThrifty Aww thank you!! I will publish some more soon on my site! :D
Andrew LivingRichCheaply Now I know that’s true! I’m so glad we went on a few dates before they arrived!! :)
FrugalRules Thanks John!!
Clarisse @ Make Money Your Way Thanks Clarisse!!! I’m the same way now!
brokeandbeau Aw thanks!! It was crazy but doable for sure! :D
SuburbanFinance Oh yes. I’ve been a parent for 2 whole days and I can say it’s worth it!!!
You did an awesome job at saving cash for the babes, Cat! A very smart move on your part. We’ve never put away money, sadly, to save for something big, but we are now following the tips you listed above to kick tail on our debt, and it’s working wonderfully. :-)
The dreaded second job really is a fantastic way to save for upcoming goals or expenses. Maybe I’ll deliver pizzas again. That was maybe my favorite job ever. All I had to do was drive and hand people delicious pizza, and they gave me tips. Why didn’t my high school counselor ever point me in that direction?
Again, Cat – Congratulations on becoming a new Mommy! So happy for you! :)
“I definitely felt a shift where every time I wanted to buy something, I thought about the twins and if I could use the money for them instead. This was sort of a natural emotion that happened, and it helped to keep things in perspective.” Yes! The way you spend money on yourself will definitely change from now on. It doesn’t meant that I don’t buy things for myself, because I do, but it’s within my planned budget. When I find myself tempted to buy something I don’t need because am having one of those “deserve it” moments (yes, I get them too), it’s often thinking about the girls that restores my common sense. The thought of not being able to do something we planned because I wasted money on something unnecessary helps me refocus. You did an amazing job saving money for your babies and I know it took a lot of work. And I’m sure it’s paying off now that you’re holding your sweet babies!
I’m definitely impressed. I would be incredibly pumped if I heard I was having twins, but also terrified. The thought of the expenses for one child makes me nervous, so right on that you were able to avoid the freak out and get everything in order!
I think it’s great that you saved instead of running out to buy infant sized Nikes. They are cute, but kids don’t need shoes until they start to walk. Most of the stuff people buy for babies is more for them because it’s just so dang cute. You are so much smarter to save money instead of having a pile of outgrown baby clothes in a few months.
Congrats Cat! I hope you and your little ones are doing well and that you’ll share some pics!
As someone who has been working two+ full time jobs since 2008, I can relate. Only two more years, and I’m out.
I now have an awesome cash flow from my rentals, allowing me to save almost $15K per month.
Great job saving, but the kid is going to get expensive. Maybe you can teach him/her to start doing something to make money? Maybe a kids painting. If they can sell an elephants painting for $1,000s, a kids painting should be worth something.
Since I don’t have kids, I can be an unbiased expert. :-)
No Nonsense Landlord Haha well right now, I’m just trying to bring them home but I’ll def work on the side hustles.
BudgetforMore Thank you! Yes I promise I will on my blog soon! :)
Eyesonthedollar Haha yeah these kids do not have tiny nike shoes I can promise you that! :)
ImpersonalFinance Pumped/Terrified described us exactly haha. :) Thank you!
ShannonRyan Thanks so much Shannon!! Yes, I’m so so glad we did now!
DonebyForty It’s true – so not easy while it’s happening but great when you get the paycheck!!
Laurie TheFrugalFarmer It’s awesome once it becomes habit just like yall are doing! :)
Wow Dave, that is awesome commitment of you. How old are your twins now?
Do you subscribe to the view that it will cost you around a mill for each child? Personally I think that’s a bit excessive depending on whether you want a spoilt brat or not :)
Sorry not Dave, didn’t realise this was a guest post :O (woops)
mycareercrusade Haha no problem. It’s not actually a guest post, though. Cat is a weekly contributor.
DC @ Young Adult Money mycareercrusadepotato potatoe right? ;)
Haha I would still be interested in hearing your answer to that twins question :)
mycareercrusade DC @ Young Adult Money Haha yeah but guest posters aren’t paid and usually aren’t regular. It’s an important distinction. I’m not sure what I think as far as cost per child. I haven’t really thought about kids and don’t plan on having them for 5-8 years.
DC @ Young Adult Money mycareercrusadeOh okay, gee that is enlightening, wasn’t aware regular posters were paid.. Would love to learn more about this to help me with FI (financial independence).. If you don’t mind me asking Dave how old are you?
5 – 8 years seems a long time :O