So I figure it is time to write a short update now that I am at least getting my head above water again. Ten days ago our second child was born so we have been a bit busy (and sleep deprived) for the last while. Everything went well with the birth and we are starting to adapt to the changes of having both an almost three year old and a new baby at the same time. I thought it would be interesting to share a few observations about the last week or so and in the future explore the impacts of having a family of four on our FI Project.
First, when you are sleep deprived and have a lot of changes happening at once, logical thinking and self control deteriorate (a lot of research and theories support this). While we have not gone overboard, the amount of meals ordered versus cooked has increased significantly. Luckily a lot of this has been covered by generous gift cards from family and friends. What is interesting is how quickly both of us want to do “whatever is easiest” when it comes to eating and other things. This could be very dangerous financially if not kept in check, and luckily we are slowly getting back into our routines, which doesn’t involve wasting so much money on food for convenience.
Next, I am glad that I maximized an FSA with my health insurance this year. Our total cost for the birth, hospital stay, and associated expenses are around $2,500 (the maximum individual deductible of our plan). Since I put the maximum in an FSA account it means that the money has not been taxed essentially saving us 25% of the cost. This also kept us from having to use after tax money or worse tapping the HSA accounts. The cost is actually going to be even less since the FSA is fully funded at the beginning of our plan year (April) and I will not be staying at my current job for much longer (more on the new job in a future post, I promise).
Finally, because of our financial planning I did not have to worry about paying bills or moving money around during times when all I want to do is sleep. In fact today is the first day that I am updating our spreadsheets and budget just so I don’t have to do everything at the end of the month. Not all events can be planned for ahead of time like the birth of a new child, but even if we had an unplanned emergency I still feel like we would be well prepared for it at least financially.
Hopefully my next post will be a long update on my new job and why I decided to take it. I just need a couple hours of protected time (if there is such a thing anymore) to write everything out.