Today I sat down and did a Financial Needs Analysis. Now that our family is going from three to four, I wanted to see how we stood financially. Being in the millitary helps so very much because our Medical is coverd 100% and our Dental is coverd about 75%. But after adding up all our debt, including our two cars, student loans, credit cards and a private loan, I'm looking at around $45,000 in debt. Now I'm sure there are people out there with even more and as long as all the bills are paid and our daily needs are met I shouldn't really worry about it. But I do, I want to make sure that 14years from now when my son wants to go to college, I can send him to the college of his choice with 2 years tuition paid and his first car paid off. I also need to be able to pay for two wedding rehersals (assuming this new addition is a boy) if not then one rehersal and one wedding. It's amazing how much debt you can rack up in 10 years time. Advise to young ladies that haven't had the pleasure of consumer debt...stay away. The things I would tell my 17 year old newly married self..... only spend what you can pay in cash....watch out for credit cards with high intrest rates....if you dont need it dont buy it! Now, my husbnad and I are at least 20 years away from retirement and so I have the time to rectify the situation, but I wish I had someone telling us about the importantace of savings and the dangers of credit cards back then. I'm just starting a savings account for my son now. Every time he recieves money form family and friends for christmas or birthdays, it goes straight into his presonal savings wich he will not be able to touch till he turns 21 or moves out on his own (which ever comes first) I plan to do the same with #2. I'm also considering taking the tax credit we get for the kids and putting that in thier savings. It's now $1000 per child up to 5 children. But we depend on that return so much to pay off debt that I dont know if we can handle giving up that much every year. I guess I'm just writing down my thoughts for the day. I'm home alone as usual while my husband is at work and had all this running through my mind. I think this Christmas my DH and I are going to pass on getting eacother gifts and save for the baby. My son usually gets about $300 in gifts, this year he's getting one big gift and a stocking stuffer and thats it. (This year he wants a trampoline...
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Replies
I wouldn\'t worry too much about your debt. You listed some big ticket items that many of us have (cars and student loans). It is stressful to think about when you are bringing another life into the world. But you are teaching your children at a young age the importance of saving and looking into the future. We will be doing similar things for Peyton when she gets here. We already decided that we will put a small amount each paycheck into a savings account for her for when she turns 18. Don\'t worry about the wedding stuff either! My husband and I payed for our own wedding 100% about four years ago. Times change and the bride\'s family doesn\'t necessarily have to pay for everything
Relax and breath! Everything will be just fine =)