Today on the podcast, we’re talking about multiples and money… the early weeks, months and years of raising multiples are hard enough, without having to worry about money. So yes, in today’s episode we’re talking about the “B” word: Budgeting. But don’t zone-out. It’s actually pretty easy…
And it’s important. With twins, triplets or even more babies entering the picture… you’ll obviously be facing additional monthly costs. And with possible parental leave, you may also be living on a reduced family income. So you’ll want to prepare for this and cushion the shock.
So, today we’ll talk a little bit about what we did to prepare when Kathleen was pregnant with our triplets, and we hope it’s helpful to you.
Oh! And you can follow along with this…
Download this free worksheet, so that you can make sure you’ve got enough in the bank before entering your life with multiples…
Alright, so we took some pretty simple steps to make sure that we wouldn’t go broke when we had our triplets. And for some of you, these steps may seem obvious. But for others, this could be mind blowing
This is just what we did. And you can use this system, if it seems helpful to you.
We made a list of all the expected child-related expenses… you know… diapers, wipes, baby formula, any paid help we thought we might need… and we did a little research to estimate what these items would cost us in an average month. So once we had that number, we could move onto step 2.
We did the same for ALL of our regular monthly living expenses… mortgage/rent, utilities, car insurance, and we included entertainment… so that could be our Netflix subscription… whatever.
So now we added the two totals from Step 1 and 2, and that gave us an idea of what our new life with multiples would cost per month once our triplets had arrived.
Finally, we had to figure out what our monthly household income would be, taking into account any decrease in income due to parental leaves.
So, once you go through these 4 steps, the BIG question is…
Will you be bringing in enough money monthly to cover your total costs?
If there’s a shortfall, you may need to save up a little now to cover costs later, especially during maternity or paternity leave.
This is all pretty easy, but a lot of people NEVER do it. And it’s not uncommon that parents are forced to cut their parental leave short, because the money runs out.
And again, we’ve got a printable worksheet that we’ll tell you how to download, that will walk you through these steps… and there’s places for you to do all the math, and come to your totals
Your life IS about to get more expensive. There’s no doubt about that.
So, this is what we did to soften that blow…
While Kathleen was pregnant, we practiced living on less. In fact, we tried as best as we could to live on one income.
Even though she worked throughout most of her pregnancy, we pretended that she wasn’t.
So most of what she made, we just put aside and saved. It meant making a few short-term sacrifices, but it helped us adjust to our new financial reality.
And even though we weren’t buying things like diapers and formula yet, we pretended that we were.
So every month during the pregnancy, we also put aside the money that we would be spending on these new baby things.
And this accomplished two important things…
It helped us get used to living with increased expenses on a reduced household income.
And, secondly, since we were saving the extra money, we could build a nest egg to help cushion ourselves for Kathleen’s maternity leave, and in case of any unexpected expenses.
So, this gave us peace of mind.
Again… Things to Consider…
- Once the babies arrive, will you be bringing in enough money each month to cover your new cost of living?
- If not, can you temporarily reduce any of the Living Expenses from Step 2, in order to increase room in your budget for the new baby-related costs?
- While you’re pregnant, try living on a reduced income and save the difference for future baby-related expenses.
So, this all sounds great in theory. But it’s not until you look at the hard numbers that you can get a clear picture of what life will cost with twins or more.
It might seem like a drag to have to think about these things. But I promise, having a clear picture of what your financial reality will be… will help put your mind at ease.
So, as promised… we put together a worksheet that you can print and use to go through these 4 steps we outlined.
And that can be accessed by visiting lifewithmultiples.com/budget
We hope you find it helpful!