Jordan went to the place of forecasting, guessing, planning, and 'what ifs' and I went to the - I want to work with facts place.
That is so opposite to most of our conversations.
After we realized what happened, it was an eye opener in understanding how the other thinks/operates most of the time - which was great - but that learning is not really what this post is about.
The conversation was what our financial picture would like like after babies (no, I'm not pregnant - but yes, we plan on a family one day). Jordan and I both support the idea of one of us staying at home, and while I really want that person to be me, financially I never thought that it was realistic.
Jordan is actually really keen on the idea of being a stay at home dad and while that sounds great, there are some perceived risks associated with that too. Someone brought it to my attention that while financially it doesn't make sense, it might be harder for Jordan to re-enter the workforce after taking a few years off to raise children. There could be a perception that he stayed at home because he 'couldn't' find work - or some other BS.
All that aside, we looked at some theory and some facts and of course - I put all of that into a spreadsheet...
I showed off my spreadsheets to Jordan tonight, and he asked me to share them with all of you. He really wants to know 'how you do it?' - how do you have kids and maintain a household at the same time.
So here it is - first the mat leave budget (including EI (but not my salary top up) - for the first 15 weeks i'll get my Employment Insurance topped up to 70% of my base salary from work). Beside that, you'll see our 'back to work' budget. We don't have family available for child care - so we called around and took an average price on what seems to be child care options in our city/neighborhood.
We kept our variable spending in our chequing account the same as it is now because we figured while we'll spend less on some things (alcohol) we'll spend more on others (diapers). While it would be tight - super tight - I'm actually re-assured knowing that if I did get pregnant, we could still pay all the bills.
We also talked about saving up to have a 'baby bank' to top up our income when I'm on leave - using savings on a monthly basis to 'top up' our own salaries.
Here is the 'stay at home' scenarios:
We obviously can't consider either of these scenarios unless one of us gets a HUGE raise, we pay off the Escape, and get a side job on top if it.
So there it all is - what do you think? How do your family's do it?