How on earth do you afford it??

Hi everyone, my first visit to this forum. Recently I've been thinking that it might be nice to have a child. Hubby agrees but is extremely reluctant because of the financial situation. We both work and I earn more than he does. If we were to have a child I would not be looking at going back to work until the child was at least 2. We bought our house 9 months ago, so obviously have a mortgage and we have a consolidated loan as well as the other usual bills and stuff.

I've played around with our budget.. and it honestly looks like if I was to stop working, we could not survive on his income. I know very little about what benefits or government assistance we could get other than we would be entitled to a community services card. Can someone enlighten me in this regard? I'm 28 and not getting any younger.. would really like to start this "project" soon.
Thanks

It's 14 weeks paid parental leave now, that's the only thing I'll add.

Here's some links for you:
IRD for WFF tax credits (used to be called family support)

WINZ for WFF housing/accomodation support.

Both of those links have calculators and are mostly based on your (or rather, your DH's) annual income.

Thanks for the replies guys!

I checked our those calculators... it seems, based on hubbys minimum wage (he generally earns more but I'm going with worst case senario) and including a $58 accommodation supplement and $142 working for families thing AND having hubby quit smoking, we're still just going to be scraping by.

I would however be entitled to paid parental leave, but whats the deal, can I just get that then turn around 14 weeks later and say "oh no I'm not returning to work now, bye!" Cos ideally I'd spend the first 3-5 years at home with the kid.

I second what everyone else has said. The only thing I can think to add is that you'd be amazed how many of the 'essentials' you can learn to live without, and not miss!
We were just managing on what we had before bubs came along, and worried about how we'd find the extra for another person too.
I don't have to buy work clothes anymore, I don't get the expensive haircuts, obviously I don't go out as much.
Eating cheaper meals at home more often. Making lunches for DH... Little things make a big difference!

Edited by caraMel

I think you just need to sit down and get all information from WINZ, from the bank re mortage holidays, work out your budget and find out how much you can reduce your expenses. And then draw the line so to say and figure out what you can and can't afford.
My advice would be to look at all your options and then figure out a way to manage. Also would going back to work before the 2 year mark is up be worse than not having a baby?

ETA - the other thing to think about is are things likely to change in the future? ie if you are going to be in a similar position financially 10 years down the track, then would waiting really help?

Edited by yummymummy

I think it does all depend on alot of things, but as you get more used to being just you and hubby and living on both incomes, you know what they say.. the more money you have the more you need. I think when you look at it, it does work out, it's about being sensible and making a few sacrifices. usually the first thing you need to look at is necessities, the cold hard plain bills you need to pay and see what's over after that, look at your food spending - what you buy at the supermarket that well, could really be skimmed on, cut down, or buying bulk or different brands.. i find it amazing some couples spend so much on grocerys when we can get by on $240 a fortnight for a family of 4, including nappies (and formula when we needed that).
Really its not so much the kids that i find expensive it would be the not working.. (hence why i work)
Buy clothes at sales.. start buying now, seriously people think you're nuts but i did that long before kids and had a heap by the time i had Paris, things like singlets, socks, bibs, stretch n grows, the stuff that never changes and you can get at sales for cheap as and buy a heap in different sizes, we still buy a heap at sales in the size up for the next year.

As Fleur said, if you wait till you can afford kids, you'd never have em.   We got by fairly ok on mike's wage of 24,000 when i first had Paris, thank god it's grown since then! but you find ways to make things work, you go without all the fancy and you accept that your reward is having beautiful kids not fancy clothes and $150 hairstyles.

ezza wrote: its rough ah. it was the only real way we could do it. although, to be honest (and i feel this really makes me a failure of a women to say it) i want to go back to work. i would rather wait till bubs is a year old, but thats not possible for us. I'm just thankful we can work it so one of us is at home at all times. Anyway, just my 2 cents. now all i have to do is actually get pregnant!!

You are so not a failure if you go back to work.
I was fortunate enough to spend 6 months nannying for a 3yr old boy and that taught me that i don't want to be home full time with children - I will be going back to work, not just for the money, but for my sanity.

The thing we had to get used to was accepting second hand stuff. A lot of our friends finishing their families were all too pleased to pass on strollers, cots, etc because they had no more need. We've had heaps of clothes passed our way too and still in good condition. Save the buying for must-haves and special occasions! We used less petrol when only one of us worked and we cut but our grocery budget too.

Secondhand stuff is good, although I can see how easy it is to get carried away with wanting new stuff when its your first baby .

Not sure how much petrol costs will change, as I don't plan on being a SAHM who actually stays home.
There's always the bus I suppose - I used to love going on the bus when I was little.