Over the past few months, a lot of the blog posts on Our Debt Free Family have been hinting at big changes coming our way. My husband got a new job that he is able to work from home and we’ve been reworking our budget. We’ve been doing all of this in preparation for a huge change coming our way. So, what’s the big news?

*Cue drum roll*

Our Big News

We are expecting our first child!

This week, we learned we are expecting a baby girl. Both of us are overjoyed with the idea of growing our little family. The first few months of the pregnancy we kept the news quiet between us and a few close family and friends. I was deathly ill for about eight weeks straight and it was exhausting. But, now that the first trimester (and then some) has passed, we are ready to share the news and get down to business.

Now that we know we are expecting a girl, it feels like there are a million and one things to do. People have asked about a registry already, we are looking at expenses and budgeting changes, and things we need to get done before the little one arrives. Not only do we need to get a nursery ready and get everything baby will need, but there are things like getting the car registered and updating our work computers that need to be done as well.

Financial Thoughts

So, that brings me to the financial aspect of our big news…

We have been putting our heads together trying to think about what our major priorities should be as September 2 approaches. Here are some of the bigger expenses and things we are hoping to accomplish over the next four and a half months.

• Health insurance: I had to purchase health insurance earlier this year to pay for prenatal care. We did not qualify for Medicaid. This is an extra $278 bill each month. We will also need to purchase health coverage for the little one once she arrives.
• Car repair and taxes: We recently spent a little over $600 on replacing all four tires on our vehicle. That was desperately needed. There are also a few more things we need to get done with the car, including paying our taxes here in North Carolina and getting our plates switched over from Georgia by July.
• Work computers: Because we are both working from home, we are in need of new computers. Both of the laptops we’ve been working on are clinging on for dear life and need to be retired for travel computers. We will be looking at getting desktops for our in-home office.
• Getaway: Next week, we will be going on one of two getaways we have planned before the baby arrives. We won’t be doing much (if any) travel during the first year of her life, so we want to be sure we have two nice trips together before then. The other trip will be planned before July 22, which is my medical cut-off date for travel.
• Nursery: Of course, we will also be planning out and buying things for the nursery. Much of this will be bought for us. We both have large families that are looking forward to the new addition. It is the first grandchild and the first great-grandchild for much of our family. We are also applying for any and all freebies we possibly can. For example, the insurance company is going to cover the cost of a breast pump (yay). We also started our registry through Amazon, which will send a free Welcome Box with some baby items.

Getting Ready

Looking at that list above is a little daunting when you think about it all fitting into the next four and a half months. However, neither of us has any doubt it is doable with good planning. Most of all, we are looking forward to the arrival of our baby girl. I can’t wait to keep you updated on this process and how we handle everything each step of the way.

Readers, how did you prepare for your first child? What tips do you have to share?

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The Notorious B.I.G., or Biggie, once said “more money, more problems.” For Biggie, that rang true in many ways, but most of us “everyday” people think to ourselves. More money would probably solve 90% of my problems. However, it is true. The more money you make, the more problems you’ll have to solve.

Why We Need More Money

In my case, we have to push to earn more money to solve our problems. We’ve had a lot of unexpected expenses recently. Doctor’s visits, car repairs, and buying health insurance have had us pinching pennies for several weeks. Our fix? Well, make more money, of course.

Many people in the personal finance space tend to say, “No, you don’t need more money, you need a tighter budget” or “You need to pay down your debt.” While these things are absolutely true, our cost-of-living for our family is increasing. Here are some of the recent (expected and unexpected) costs we’ve encountered.

• Two out-of-pocket doctor’s visits: $500
• Purchasing health insurance: $278 (and $278 recurring cost)
• Oil change on the car: $106
• New tires on the car with alignment: $550

There are some more repairs needed on the car in the near future as well. As you can see, we’ve had well over $1,000 in recent expenses and these are only continuing to pile up. So, we’ve been looking at ways to earn more money.

Hubby Got a New Job

Our biggest “win” as far as earning more has been my husband landing a new job. He has been contemplating whether or not he wants to go back to work in a shop or not. After moving back to North Carolina from Atlanta, he decided to focus on looking for something car-related but not as a mechanic.

He landed an awesome gig writing about cars and working from home. It has been about two months and he has been published multiple times now. Eventually, he would like to expand to car reviews, videos, and podcasts, but this is a great start. What’s even better is it pays really well, so we are going to be able to afford all the repairs coming up and my health insurance each month.

We are also going to need new computers soon (both of ours are on their last legs). Luckily, we both have some flexibility in our earnings and can push to make more when we need it. So, in our case, more money will solve a lot of our problems.

I still love the Biggie song though…

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More people than ever a resolving to be more financially healthy in the coming 12 months than ever. Each year, we typically sit down and list out our goals. Things like “lose 20 pounds,” and “save $1,000” usually frequent such lists. However, in the personal finance world, I have seen some really amazing (some lofty) debt resolutions for the new year. Honestly, they are inspiring. It made me sit down and reflect on what my resolutions for 2020 were.

2020 Resolutions

When 2020 began, I had some pretty hefty resolutions, as many people do. None of us expected COVID to derail our plans. Financially, I’m glad to have been able to pay my rent for all 12 months this year. I am glad to have had a little money in my bank account at all times. More importantly, we haven’t accrued any new debt. When it comes to having met last year’s goals though, there was a valiant effort made.

As far as cutting our debt in half, that did not happen this year. We were on one income for most of the year and were doing good to make minimum payments. The bigger deal is that we did not accrue any new debt. Both of us hustled more this year with side work, freelance, and other opportunities where we could make money. That goal was definitely met.

The others on the list, well…

I did not reach my goal weight, nor did I finish my novel, or run a 5K. I did learn some German (though I’m not fluent) and I read more this year (40 books in total). I also took a few minutes every day to practice some sort of self-care: goal met. While these may not seem like a huge deal, they were things that significantly improved 2020 for me.

Debt Resolutions for 2021

Now, for my finances in 2021, I’m hesitant to make any big debt resolutions or financial goals. When it boils down to it, I don’t know what the next 12 months will bring us in terms of our money. My husband is starting a new job next week, so we will have an additional income. For the first three months of the year, we will be tying up any loose ends in Atlanta, taking care of things like tires for the car and maintenance items, and getting fully settled in our new home.

After that, we plan to focus on snowballing every extra penny we have towards our debt. In essence, my husband’s new salary should all be additional debt payment cash (whew!). I’m excited about the potential for change for us, but hesitant to be too optimistic, as I am sure many people are feeling right now.

2020 changed a lot of people’s ability to look forward and plan things like debt goals for the next 12 months. For most people, it is hard to plan for anything more than 30 days in advance. So, for now, we are taking everything in stride. I can’t wait to keep you updated on our progress through the next year.

Readers, are you making any debt resolutions for 2021? Are you finding it difficult to look forward to the next year too? 

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