Budget judging and SAHM advice

**SixxOfDiamonds** · 01-31-2010, 09:33 PM

Judge our budget!

Mr. Husband and I have come to the conclusion that we would like for me to SAH after Q has arrived. That will be in a few short weeks! So I'm looking at being a SAHM starting in April. I plan on doing photography to supplement on the side (100-400/month) but may not start that right away and that money will probably just go straight into the snowball.

This budget show our entire income being put to use.

Category---------------DR %--------------Actual
Church ---------------$360----------------$200 -we donate time as well
Savings---------------$180-360-----------$550 -401 and personal savings
Housing--------------$900-1260-----------$1025
Utilities---------------$180-360-----------$445 -this will be lowering soon
Trash - $23
Electric - $150
Internet- $60
Cell phones - $185 -soon reduced to $80-$150 depending
Water - $22
Food------------------$180-540------------$500
Groceries - $400
Pet food - $100
Transportation------$360-540-------------$350
Insurance - $100
Maint. - $50
Gas - $200
Personal ------------$180-360 ------------$200
Fun money
[U]Recreation[/U----------- $180-360------------ $300
Horse board
Debts -------------$180-360-------------$325
Car payment

You will notice there is no medical or clothing. To me, clothing comes out of our fun money. We don't pay anything in medical thanks to TriCare.

We owe $9,000 on our 2008 Subaru. I will be getting paid for approximately two more months which will bring that amount down to around $6,500. Then, whatever money I make or free up each month will go towards the Subaru which will put us at paying it off in a little under a year.

Once the Subaru is paid off, the debt money as well as the extra will go towards the FFEF.

As it stands we have a basic EF, a decent amount socked away into a money market account and $500 "oh sh*t" cash in case of natural disaster emergencies.

If you have any advice regarding being a SAH parent, send it my way! As well as any suggestions/ways to free up money.

**justpeachy92** · 01-31-2010, 10:01 PM

When we made the decision for me to become a sahm, we lived on just my husbands income for 3 months. We put my paycheck into a savings account during that time. That not only boosted our savings when we did this over 12 years ago, but it enabled us to fine tune the budget and see that we could take the plunge of going to one income family.

**SixxOfDiamonds** · 01-31-2010, 10:21 PM

Originally Posted by justpeachy92

When we made the decision for me to become a sahm, we lived on just my husbands income for 3 months. We put my paycheck into a savings account during that time. That not only boosted our savings when we did this over 12 years ago, but it enabled us to fine tune the budget and see that we could take the plunge of going to one income family.

The option of me becoming a SAHM has come up suddenly due to issues with my employer. So we'll only have about two months to transition, February and March. However - we have lived off of his income alone in the past when we moved cross-country.

**MomToTwoBoys** · 02-01-2010, 12:55 AM

I'd honestly budget more to put away as far as medical is concerned. There are some things that TriCare will not cover that could come up. I dealt with problems when my first son was born and TriCare wouldn't pay for things.

Have you guys thought of putting away some money starting now for education savings?

**SixxOfDiamonds** · 02-01-2010, 01:35 AM

Originally Posted by MomToTwoBoys

I'd honestly budget more to put away as far as medical is concerned. There are some things that TriCare will not cover that could come up. I dealt with problems when my first son was born and TriCare wouldn't pay for things.

Have you guys thought of putting away some money starting now for education savings?

If there is something that TriCare does not cover medical-wise and I cannot get them to cover it then we will tap into another one of our savings (because I could imagine it wouldn't be cheap.) I don't think this will be a big deal, however, since TriCare will cover many things most people don't realize. It just takes a LOT of legwork.

Our entire tax refund will be put away for Q's college savings. From what I'm calculating on Mr. Husband's income alone that should be around $6,000 a year. ETA: I know this will vary and may not be guaranteed.

ETA 2: She already has a grandparent/great-grandparent funded start to a college fund as well.

**Greebo** · 02-01-2010, 08:43 AM

If you're figuring on getting back $6,000 a year on your taxes you're allowing them to withhold too much. $500/month too much.

**SixxOfDiamonds** · 02-01-2010, 10:07 AM

Originally Posted by Greebo

If you're figuring on getting back $6,000 a year on your taxes you're allowing them to withhold too much. $500/month too much.

We paid in this year with me working, but punching the numbers with DH claiming '1' and having a child that's what we would be getting back this year without my income.

So yes, we probably are paying in too much, but we can't seem to get it close to around $200 above or over even with the help of tax professionals. It's due to DH's job. There are years that he's WAY overtaxed due to deployments, bonuses, etc and then years where he's taxed regularly. ETA: So I'd rather be safe than sorry this way, even if it means giving the government an interest-free loan. :/

**MomToTwoBoys** · 02-02-2010, 11:29 AM

Originally Posted by Greebo

If you're figuring on getting back $6,000 a year on your taxes you're allowing them to withhold too much. $500/month too much.

We get $7k a year taken out of us and that's the norm, especially for DH's income level.

We only see about 45% of that back, however. This year might be different, given all of the economic growth tax credits and such.

But back to the subject beforehand, it's great that you two are putting away early for your child's education fund. Not a lot of parents are doing that nowadays and are relying on grants, scholarships and loans to do their work for them. It's recommended that people start about 10 years before their child is off to college, but starting when they're born is even better. It gives you more flexibility to save for them and if you get less returns on your investments (if you guys should do that in the future), you have more years to absorb the blow and prepare to change investments.

My SIL and BIL already had an education fund started for my niece and she was just born in September. (They say she's going to university, regardless)

Your budget looks great for doing the SAHM thing.

**Mom2-3** · 02-02-2010, 11:42 AM

Don't have any advice on your budget, but good luck being a SAHM. It's wonderful and hard work! I believe if you want something bad enough, you can make it happen

**Greebo** · 02-02-2010, 12:03 PM

Originally Posted by MomToTwoBoys

We get $7k a year taken out of us and that's the norm, especially for DH's income level.

One of us isn't understanding the other here.

**rowdy35** · 02-05-2010, 10:48 PM

congrats on the new baby and maybe you can do child care for another infant to bring in a little extra money if you find you need it.

**3tomboys** · 02-06-2010, 12:12 AM

When I was a stay at home mom I found that my grocery spending was the most flexible in my budget. By using coupons, loss leaders, cooking from scratch and gardening I could save quite a bit. I also belonged to MOP's (Mothers of preschoolers). Infants were definately welcome. We met at a church. Babysitting was provided (if you wanted it). We had speakers, did crafts and had breakfast potlucks. If I remember correctly it cost $3 a week. It was well worth it to get out of the house and have time with other mothers. Enjoy the time you are going to get with your little one.

**littleplum** · 02-06-2010, 04:12 PM

Originally Posted by SixxOfDiamonds

We paid in this year with me working, but punching the numbers with DH claiming '1' and having a child that's what we would be getting back this year without my income.

So yes, we probably are paying in too much, but we can't seem to get it close to around $200 above or over even with the help of tax professionals. It's due to DH's job. There are years that he's WAY overtaxed due to deployments, bonuses, etc and then years where he's taxed regularly. ETA: So I'd rather be safe than sorry this way, even if it means giving the government an interest-free loan. :/

Do you understand the difference between federal tax withholding and federal income tax? And the difference between a tax return and a tax refund?

Tax withholding is what comes out of most employee's paychecks. That number is listed on your paycheck stub every paycheck.

Federal income tax is what you owe based on your income minus your exemptions and deductions. That number is on your 1040, usually on the line right below the figure for your "taxable income".

A tax return is the papers that you file every year that are due by April 15th for most working Americans.

A tax refund is what the government has to pay you if you overpaid your taxes throughout the year through excessive withholding and the credits you are eligible for.

**SixxOfDiamonds** · 02-07-2010, 02:33 PM

Originally Posted by littleplum

Do you understand the difference between federal tax withholding and federal income tax? And the difference between a tax return and a tax refund?

Tax withholding is what comes out of most employee's paychecks. That number is listed on your paycheck stub every paycheck.

Federal income tax is what you owe based on your income minus your exemptions and deductions. That number is on your 1040, usually on the line right below the figure for your "taxable income".

A tax return is the papers that you file every year that are due by April 15th for most working Americans.

A tax refund is what the government has to pay you if you overpaid your taxes throughout the year through excessive withholding and the credits you are eligible for.

Yes, I understand the difference. I'm not sure where this comment was going, though?

**SixxOfDiamonds** · 02-07-2010, 02:35 PM

Originally Posted by 3tomboys

When I was a stay at home mom I found that my grocery spending was the most flexible in my budget. By using coupons, loss leaders, cooking from scratch and gardening I could save quite a bit. I also belonged to MOP's (Mothers of preschoolers). Infants were definately welcome. We met at a church. Babysitting was provided (if you wanted it). We had speakers, did crafts and had breakfast potlucks. If I remember correctly it cost $3 a week. It was well worth it to get out of the house and have time with other mothers. Enjoy the time you are going to get with your little one.

I wish they made coupons for what we shop for. Unfortunately, it's rare to find a meat or veggie/fruit coupon.

I am a member of MOPS and it's been nice, the whole three or so meetings I've made it to, haha! We recently had an 80's night and there are weekly field trips. I paid $50 for the year? So not even $3 a week.