January 2012 Financial Update: New Year Overhaul

Read our last Financial Update here!

Last year at this time Mike and I were bravely cutting up our credit cards and writing our very first budget.  We were stepping into uncharted territory and a new season of life: the start-acting-your-wage-and-get-out-of-debt season.

It’s 2012 now, and it seems we’re headed into yet another new season (life’s always funny like that…). We’re still acting our wage. We’re still planning to be debt free, although our timeline to reach this goal has had to adjust. The thing that is changing is that we are now stockpiling our savings account instead of busting our debt for a little bit. The season is: we’re pregnant.

Wow. I’m a mom to two little sweetie peanuts. That’s still sinking in.

Kids really do change your life. And our budget is one of those aspects that is getting a little adjustment with this new baby on the horizon!

Basically, Mike and I have figured that for this birth we will probably be shelling out about $4,500. That’s our “safe” estimate. We’ve got time to plan (9 months total, if you want to be exact), so this does not need to come out of our emergency fund. It also does not need to go on credit, and we don’t need to look into hospital payment plans, which would only increase our debt-load.

Nope, we’re going to do this paying cash out of pocket the whole way through. And that means that for now we’ve suspended our debt payments and we are busy throwing every extra dime into our savings account. Most months, our extra cash inflow is about $500. On 5-paycheck-months (my favorite!!) that is more like $800-$1000. And on tax refund month… well… we’re hoping for a big fat check this year. Fingers crossed!

Here is our plan to date:

  • Baby Due: July 22, 2012
  • Months Left: 6ish
  • Total to Save: $4500
  • Total Saved to Date: $1,175
  • Total Still Needed: $3325
  • Estimated Completion of Goal: May 2012

And here is what our total is going to pay for:

  • Prenatal vitamins
  • Prenatal visits with our  OB/Midwife
  • The delivery
  • Having a doula throughout pregnancy & birth
  • Monthly chiropractic adjustments
  • 4 pre-delivery massages

As you can see, I’m pampering myself a little bit this time around after my difficult labor & delivery with Olivia. Actually, I’m not pampering myself, I’m taking care of myself this time. Extra care.

After May, we’ll spend the second half of the year getting back to business with our debt payments. With about $6,500 left to go it will be hard work, but we are going to try our hardest to finally be done by the end of the year.

How about you? Have you found yourself adjusting your financial goals this new year?

Read our next Financial Update here!

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3 thoughts on “January 2012 Financial Update: New Year Overhaul

  1. Yes and no… Laura just had our baby last week. We did the same thing – stockpiling money, and have already paid the hospital bill. In fact, if we paid before leaving the hospital (which we did!) they gave us a 15% discount. So the total bill ended up being about $5,700. Not bad, since we have a $4,500 deductible.

    The goal is now to pay off the remainder of our debt – $9,800 – we should do it by October. Obviously our snowball was slowed down by the baby too, but it’ll be done this year.

  2. Pingback: November 2011 Financial Update | A Rich Household

  3. Pingback: January 2013 Financial Update | A Rich Household

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