I think you might have missed the funny part...
(too short - the message, not the poker)
Starting a family and its impacts on income
- Thread starter stinadaze
- Start date
(too short - the message, not the poker)
Good advice! We actually did that. At the end we had a buffer (in offset) which was equivalent to the mother's after tax yearly income. Doh! Isn’t that obvious?
My thoughts:
1 : Get ahead and stay ahead. The more buffer you have the more peace of mind you will have and if something happens then you have the flexibility to deal with it
2 : Weigh up private vs public birth. We went public and the amount of free stuff like support braces, pre and post natal swimmin/yoga classes etc we got for free was amazing. others we have talked to whom had private births had to pay for for all of that. Consider though that these things would be provided on a hospital by hospital basis so your local hospital may or may not have a great maternity ward :
3 : Too many people buy everything brand new and the most expensive for their child. Does it really matter if the stroller is $1600 or $100? it depends on its quality and use but just because it has a higher price tag doesnt mean the little one isnt going to spew all over it. Ask friends for old baby clothes they dont use, kids grow before they were these things out so why spend $$$$ on them when you can get a whole cupboard full of clothes from friends/family
All in all for us having a child meant the loss of a 2nd income but the family tax benefit A and B is generous enough to cover the costs of out child on a week to week basis (food, nappies, day care etc) and if you dont go overboard with baby monitoring, $5000 cots etc etc then furnishing a baby room isnt that expensive.
1 : Get ahead and stay ahead. The more buffer you have the more peace of mind you will have and if something happens then you have the flexibility to deal with it
2 : Weigh up private vs public birth. We went public and the amount of free stuff like support braces, pre and post natal swimmin/yoga classes etc we got for free was amazing. others we have talked to whom had private births had to pay for for all of that. Consider though that these things would be provided on a hospital by hospital basis so your local hospital may or may not have a great maternity ward :
3 : Too many people buy everything brand new and the most expensive for their child. Does it really matter if the stroller is $1600 or $100? it depends on its quality and use but just because it has a higher price tag doesnt mean the little one isnt going to spew all over it. Ask friends for old baby clothes they dont use, kids grow before they were these things out so why spend $$$$ on them when you can get a whole cupboard full of clothes from friends/family
All in all for us having a child meant the loss of a 2nd income but the family tax benefit A and B is generous enough to cover the costs of out child on a week to week basis (food, nappies, day care etc) and if you dont go overboard with baby monitoring, $5000 cots etc etc then furnishing a baby room isnt that expensive.
Would also make it very hard on Fathers Day with all those people turning up for the barbie and free drinks and all looking like you
..
My thoughts:
1 : Get ahead and stay ahead. The more buffer you have the more peace of mind you will have and if something happens then you have the flexibility to deal with it
2 : Weigh up private vs public birth. We went public and the amount of free stuff like support braces, pre and post natal swimmin/yoga classes etc we got for free was amazing. others we have talked to whom had private births had to pay for for all of that. Consider though that these things would be provided on a hospital by hospital basis so your local hospital may or may not have a great maternity ward :
3 : Too many people buy everything brand new and the most expensive for their child. Does it really matter if the stroller is $1600 or $100? it depends on its quality and use but just because it has a higher price tag doesnt mean the little one isnt going to spew all over it. Ask friends for old baby clothes they dont use, kids grow before they were these things out so why spend $$$$ on them when you can get a whole cupboard full of clothes from friends/family
All in all for us having a child meant the loss of a 2nd income but the family tax benefit A and B is generous enough to cover the costs of out child on a week to week basis (food, nappies, day care etc) and if you dont go overboard with baby monitoring, $5000 cots etc etc then furnishing a baby room isnt that expensive.
Great advice !!
Im my case, I bought lots of baby/childrens clothes from yardsales the year before we started planning our children. Cloth diapers at home, disposable when not.
We were within a year of paying the house off when the first child was born.
Make your own baby food with a blender. Kids are not expensive. The loss of the second income you may notice.
Start cutting back now.
You obviously don't have kids?
You mean it's not an extra spud in the oven and another bike helmet
.
Having kids will change your life forever, for better or worse; hopefully better.
I'd never have been able to "retire" at age 36 and travel everywhere and bang loads of hot girls if i'd done the "married with kids" thing. I've avoided it so far but have some vague plans to impregnate somebody one day as i'd like to have at least one mini-me running around the planet who i can do social engineering experiments on.
I'd never have been able to "retire" at age 36 and travel everywhere and bang loads of hot girls if i'd done the "married with kids" thing. I've avoided it so far but have some vague plans to impregnate somebody one day as i'd like to have at least one mini-me running around the planet who i can do social engineering experiments on.
Ocean is a wise man so i imagine he's already thought of this and decided the hundreds of kids bearing gifts on Father's Day can be offset by getting them all to meet at Bunnings on the weekend for the $2 sausage sizzleWould also make it very hard on Fathers Day with all those people turning up for the barbie and free drinks and all looking like you
I hope your son/daughter doesn't look like doraemon!
Its more economical in that there are economies of scale benefits that may be able to help, but that doesn't make it cheaper. For example, if a meal for two cost $10, then a meal for 3 might cost $14. Besides, I've found that my 11 year old boy eats more than I do and its probably going to be that way for the rest of my life. And there's all those surprise expenses like my teenage daughter's Vodafone $19 cap plan which costs me $130 a month.
As my tax professor used to say "In my experience, no matter what the government gives you in allowances, offsets and other tax benefits, its never financially viable to have children."
Children?
Hiya
Am i the only one who thinks children can make good investments?
I know my mum did...she is still receiving perpetual returns from her 3 kids
But seriously, don't plan too much until you get analysis paralysis...give them lots of love and attention and they thrive regardless of the money factor...sometimes it is our own expectations and high standards that causes grief to ourselves!
Remember Tiger mums?
Hiya
Am i the only one who thinks children can make good investments?
I know my mum did...she is still receiving perpetual returns from her 3 kids
But seriously, don't plan too much until you get analysis paralysis...give them lots of love and attention and they thrive regardless of the money factor...sometimes it is our own expectations and high standards that causes grief to ourselves!
Remember Tiger mums?
Seen plenty of them back when I was in school. It never ended well for the children - most of them lost the will to achieve when they reached adulthood.
I agree that when kids are little, it is the loss of the second income that is the expensive bit, not actually having and looking after the kids. Depending on your lifestyle pre-kids, you may find you spend less after kids as you can't go out on a whim and clothes shopping isn't so appealing after a baby.
I'm currently getting the paid parental leave from the govt. Is $1000 after tax per fortnight for 19 weeks which can almost pay an average mortgage. Unlike the baby bonus, the parental payment is taxed and I assume will go on the primary carer's group certificate for tax purposes. so you would effectively receive more parental payment the lower the taxable income is for that year.
I'm currently getting the paid parental leave from the govt. Is $1000 after tax per fortnight for 19 weeks which can almost pay an average mortgage. Unlike the baby bonus, the parental payment is taxed and I assume will go on the primary carer's group certificate for tax purposes. so you would effectively receive more parental payment the lower the taxable income is for that year.
Kids
Hiya
My kids ARE my motivation; all 3 of them...
They do not know yet, but when they reach 21, they will each "inherit" an IP ....not fully paid though...they will have to carry that mortgage on themselves at that stage but at least i can "freeze" the current price for them now...
That's what my mum did and that's what i intend to do for my kids......
It's a little like the little baby birds in the nest...the mother bird has to gently shove them out with a nudge....
Hiya
My kids ARE my motivation; all 3 of them...
They do not know yet, but when they reach 21, they will each "inherit" an IP ....not fully paid though...they will have to carry that mortgage on themselves at that stage but at least i can "freeze" the current price for them now...
That's what my mum did and that's what i intend to do for my kids......
It's a little like the little baby birds in the nest...the mother bird has to gently shove them out with a nudge....
Hiya
My kids ARE my motivation; all 3 of them...
They do not know yet, but when they reach 21, they will each "inherit" an IP ....not fully paid though...they will have to carry that mortgage on themselves at that stage but at least i can "freeze" the current price for them now...
That's what my mum did and that's what i intend to do for my kids......
It's a little like the little baby birds in the nest...the mother bird has to gently shove them out with a nudge....
Love this idea. Might steal it
. I remember reading about how one of the guys off of dragons den pays his kids double their income to encourage them to still want to succeed and not to just rely on dad's massive wealth. Think he paid even more so if they were to take a relatively low income job he deemed admirable i.e. teacher/nurse etc. Stealing that idea too.Me too! There's a real pic of me on my profile but you can't see it because Sim has disabled all my profile features.
Thanks for giving me hope virgo.
I have a very similar plan except a bit meaner
Bought one IP before having each kid. Use the equity to support their private secondary schooling. After they find a job sell it to them at the lower than the market value but take only 75%.
