What Is Raising A Child Worth – We’re Going To One Income

island hopping

What is it worth to raise your child? Is it worth giving up an income?  For us the answer will be yes.  First the first time in a long while my wife will not be heading back to work this September (she works in education).  Instead she will be staying home to raise our little guy and our princess (19 months and 8 yrs old respectively).  This wasn’t an easy decision for us.  Giving up her income will require us to be a lot more frugal and we’ll really have to watch our spending now.  Our future savings will also decrease as we won’t have as much to put away.  We have  a nice cushion already and I think we can do this; it just requires us to change our lifestyle.

Here is why we’re moving to one income:

  • Child Care Cost – We were paying a LOT in child care.  And yet for all we were paying our son was getting sick way too often, catching bugs from the other kids at day care.  Not that the day care was bad; it’s just inevitable that a child gets sick and spreads it around.
  • Sick Days – My wife took a lot of sick days during the last school year.  As I mentioned the little guy was getting sick a lot.  Day care is supposed to help us go to work but it was causing a lot of stress instead.  Let’s face it, it’s painful seeing your child sick and not be able to do much about it.  And my wife was getting to a point where her sick days were going to start costing her.
  • Stress of getting around and making arrangements - Mornings were hectic to say the least in our home.  Getting two kids ready and getting to work on time s a big deal.  The evening before we had to make sure everything was prepared and laid out for the next day.  Then there’s actually dropping the little guy off and picking him up (sitting in traffic, finding a spot, etc…).  Ever leave you child with someone else and have him cry for you?  It will break your heart!  We also had to find arrangements for our daughter after school for a good part of the year.  And because I was dropping her off in the morning I was getting to work and leaving later.
  • Enjoying raising our children – Last on this list but first in our hearts, the main reason for my wife staying home to raise the kids is because we feel it’s the right thing to do.  We feel strongly about being there for our children in their formative years.  My wife originally intended to take more time out when the little guy was born but she ended up going back anyway.  Now she will take the time off to be there for them.

It’s a shame that in today’s economy having a parent stay at home to raise the kids has to be a difficult decision.  When did it switch from a second income being gravy to it being just about necessary?

Stay tuned to see what we have done so far to adjust to one income!

Have you moved from two incomes to one?  How is it working for you?

Creative Commons License photo credit: quarxdmz

Not Having The Police At A Car Accident Can Cost You

Car crash

As I mentioned in an earlier article, our new car got into an accident on our vacation driving down to Virginia. The weather had recently turned to rain.  We were driving along the highway below the speed limit making sure to keep a safe distance from the car in front.  Suddenly traffic slowed down so we did as well.  Then I saw it coming in the rear-view mirror – BAMM!!  We just got hit from behind. The force was enough to throw us forward.  I moved to avoid the car in front but ended up clipping his fender.  All three cars pulled off to the side of the road.  Thank goodness no one was hurt!  The kids were shaken up (heck, we were all shaken up) but we were OK.  I got out and assessed the damage.  Man I didn’t realize how bad we were hit.  Back door was crunched inward.  At first I couldn’t even open it.  Our front has a small dent as well.  The other two cars – scratches at best.  It was an SUV Oreo and our poor mini van was the creamy middle.

Still a bit frazzled from the accident the other two drivers and I began to exchange automobile insurance information.  The person who hit me was in a rush to leave.  He didn’t think we needed to call the police since no one was hurt and we were exchanging info already.  Something didn’t feel right about this to me.  Thankfully, I listened to my Spidey sense and called the police.  A few minutes later an officer arrived and took all of our information.

What A Police Officer Does At The Accident

  • The officer took all of our pertinent information and heard separate descriptions of what happened from each of us. This was good because the officer gave us each a Driver Information Exchange Report which listed car insurance information, driver’s license #, address, phone number, car description VIN, and more.  After an accident it’s easy for a driver to forget to get a piece of information or write something down incorrectly.  Getting this from a police officer helps to prevent that.
  • I didn’t know it at the time but you could be given a ticket for driving too close and causing an accident (at least where I was). This may have been one of the key reasons the driver who hit me wanted to leave.  It ends up the officer gave him a written warning.  This is very important in that it gives official evidence that the officer felt it was the driver’s fault for causing the accident!  This will help in determining the fault for the insurance companies which will lead to me getting back my car insurance deductible from repairs on my accident claims (my deductible is $1000).
  • The officer filed a police report for the accident. The insurance companies will use this as well in determining the fault.  Without getting a police report you run the risk of a driver changing his story after the fact and it becomes an issue of his word against yours.  Again this will help in getting my deductible back.
  • Having an officer there helps keep everyone’s heads level. Things can get heated when there’s an accident.  I’d rather have the officer do the peace keeping than worry about it myself.  Also, I want to believe in the best in people but I don’t know the person who hit me from Adam.  An officer can confirm that this isn’t a criminal.  A little paranoid?  Yes.  Does it give me additional peace of mind at a stressful moment?  Heck yeah!

As you can see calling the police was important. With the written warning and the police report the automobile insurance company should see that the fault was on the other driver.  This will save me my insurance deductible of $1000.  Had I not called it could possibly cost me that $1000!

Creative Commons License photo credit: Mr Wabu

Our Vacation To Virginia Beach And Such

We got back a few days ago from our trip to Virginia Beach. According to Google Maps this was around 380 miles and should take about 7 and 1/2 hours to get there (more on that later).  We drove down on Sunday morning and came back Friday evening.

I was originally going to call this our “staycation” but it seems that staycation really means that you stay home and go to local attractions.  Still, this was our first driving vacation.  In previous years we would fly to our destinations.  Since we just bought a new mini-van we figured it would be a great time to drive and save money on plane fare too!  Virginia Beach seemed close enough to drive to from NYC and we heard a lot of great things about it.

So we packed up our stuff and put the kids in the car and left Sunday morning.  Many, many hours and rest stops later we finally made it to Virginia Beach (we had a major delay at one point but more on that later).  It was basically an all day drive for us, what with stops and all.  One exciting about the drive was going over the Chesapeake Bay Bridge-Tunnel which spans 20 miles (on the way back we saw what might have been a a Navy Destroyer passing through the channel section).  It was also interesting to see all of the different towns and landscapes in the different states (four total: New Jersey, Delaware, Maryland, and Virginia).

Virginia Beach is beautiful! Our hotel really was just two quick blocks to the beach!  There was a beautiful boardwalk on the beach to walk along with a separate trail for bikes (we wanted to rent a bike for all of us but we didn’t get a chance).  Within two from the beach are places to eat (the four main  food sources seem to be seafood, ice cream, waffle/pancakes, and pizza), shops, a fun house, a haunted house, lots of ice cream shops, outdoor performance areas, miniature golf, and more!  It was really fun to walk around at night and take in the scenery.  In fact one of the performances we saw was the Edgar Winter Group at a bandstand right off the beach (we caught Frankenstein and Free Ride)!

An interesting thing we discovered was that Virginia Beach is close to a Naval base.  As a result there are military jets flying routes overhead all day.  Living near two airports in Queens, NY I’m used to hearing planes overhead but seeing military jets is different.  The last time I saw a military jet flying was on September 11th over the Empire State Building so it brought back some somber memories.  Once I got used to that though it was pretty awesome seeing the jets flying.  At times we would see three together flying in close formation.  If we ever go back we’ll have to tour the Naval base!

Funny story…One day my daughter wanted to go to the pool rather than go to the beach.  She couldn’t quite grasp that we didn’t drive 400 miles to go to a small hotel pool!  Well the beach won out.  As I was playing with her, jumping waves I saw a fin a little ways off.  I noticed it was a curved fin.  I told I thought I saw a dolphon but wasn’t sure.  She got worried thinking it could be a shark!  A few minutes later I saw for sure two dolphins swim to the surface.  Other people noticed it too.  In all there were about four dolphins swimming around and playing a little ways off from us.  We saw a couple jump out of the water and twist.  We must have watched them swim around on and off for the next hour!  At one point, holding my daughter up to see the dolphins, I asked her if she would have rather stayed at the pool.  Begrudgingly she said no, that it was much more fun at the beach.  Ha!  On a similar note, I had seen dolphin watching boat rides advertised for about $20 a person.  We saved a bundle by just going to the beach instead!

As well as the beach and the local scenery we also went to the Virginia Beach Aquarium and spent a day in Colonial Williamsburg.  The little princess loved seeing all of the old time building and costumes.

Remember how I said Google Maps said the trip should be 7-8 hours?  I’ve discovered that with two kids we have to add at least 30% to the time listed!  Coming home took much longer with stops and traffic entering NYC.

The trip was a lot of fun and I would definitely consider going back to Virginia Beach but it seems for us every silver cloud has a lead lining.  While driving down there we got into a car accident.  We got rear ended on the highway.  Our brand new car now has a dent in the front and a smashed in rear door.  No one was hurt and the car runs but it really hurts to have a new car get beat up like that.  The accident was the other person’s fault and insurance should cover the repairs but it did put an ill feeling over the trip.  We even considered going back home after the accident but we’re glad we went through with the trip.

In all I think we saved money by not flying off someplace.  We certainly spent money but it was less than we would have flying to a Caribbean locale.

Accident aside, we had fun and I think we have more driving trips in our future. As you can see from the Frugal Things To Do series there’s so much to see and do in this country!  Even a couple of days before the big trip we went out to Sesame Place and a couple of weeks earlier we went to the Bronx Zoo.

Goals Are Great Motivators

Marathon de New York : Verrazano Bridge

Goals can be great motivators to help you achieve! I find that when I have a specific goal it’s much easier to focus on what I want to accomplish.  For example: For me to save money is one thing but when I have something specific to save for I find that I can save up much quicker.  When I was younger I wanted a new stereo (the hand-me-down I was given still had an 8-track in it).  I made a goal of saving up for a new stereo.  When I sacrificed some expense for savings I knew i was to help me get that stereo.  When I worked extra hours in the supermarket I knew it was for the stereo.  In no time I had enough to go out and buy a new stereo, equipped with not one but two tape decks! (Have I dated myself or what?)

Let me give you some other goals I’ve set for myself and accomplished:

Ran the NYC Marathon – In 2005 I decided I wanted to run the NYC Marathon.  I knew I needed time to train and run enough races (you have to run 9 NYC RoadRunner races for guaranteed entree).  In 2006 I mapped out what races I would run to qualify for the next year’s race.  It was tough to keep up but I ran and finished all nine races for entry.  In 2007 I started a training program to get me in shape for the marathon.  In June I started my longs runs every weekend to get me ready for the distance.  The first Sunday last November I woke up at the crack of dawn and hopped on the Staten Island ferry to get to the start of the marathon.  Later that afternoon I would be able to call myself a marathon runner.  I don’t think I ever would have run the distance without a specific goal of running the marathon.

Paid off my credit cards – Some years ago I finally got fed up with how much I was paying monthly in interest for my credit cards.  I resolved to pay them off.  It started slowly but bit by bit I started to gain ground.  After an incident that led me to move back with the ‘rents I was able to turbo charge my payments and finish off my credit card debt.  I haven’t had more than a month’s charges since then (I pay my cards off in full every month).  Without resolving to pay off my credit cards once and for all I would still be idling along with minimum payments and a ton of debt piling up.

Started a personal finance blog/site – In October of 2007 I had discovered blogging via Zen Habits then Get Rich Slowly.  I was already itching to find something productive to do with my time and had healthy interest in personal finance.  I set a goal of starting up my own blog and making it successful.  I’m still in the middle of this goal but I feel like what I’ve done so far has been a success, especially when I look back at my first month of original posts on my Blogger site.  Without my goal I might be surfing fantasy baseball sites instead of writing this article.

Build up our savings – My wife and I wanted to make sure we had enough in savings for any emergency and then some.  Rather than hope to put some money away with what was left over at the end of every month we calculated a specific amount we could afford to do without and set up our ING savings to automatically withdraw money from our checking every week.  We have since achieved our emergency savings goal and exceeded it.  If we didn’t create a specific plan our savings would be considerably less and we’d be scratching our heads wondering where our money went.

The lesson here is that I was motivated to accomplish different things because I set a goal to achieve!  Having a goal in mind keeps my mind focused.  Without a goal set I would have just floated along in many cases.  My savings would be lower, my credit card debt still existing, my running much less, this site just a thought…

One way to accomplish a goal is to make it SMARTSpecific, Measurable, Attainable, Realistic, and Timely. (Thanks to Cash Money Life for turning me onto that concept.)

I also like to think in terms of short and long term goals. For example – The goal of saving up for a down payment on a home, while an admirable goal, may seem a bit too big to ever accomplish.  That could be a long-term goal.  To make it more achievable you can create a short-term goal of saving X dollars a month towards a down payment.  This way you see your small goals achieved which helps build up the confidence to achieve your bigger goal.

Check out this article on the science of setting goals.  When you set a goal you are actively engaging your brain to help you with your goal!

What goals have you accomplished?  What are your current goals and how will you achieve them?

Sign up with ING Direct and get a $25 bonus –  Free From Broke.

photo credit: Martineric

Dealing With Financial Problems With A Loved One

Purity

There may come a time when a financial problem comes up between you and a loved one. Maybe it’s a late payment that runs up some fees.  It could be an old debt that rears it’s ugly head again.  Perhaps someone did a little too much damage with credit card spending?  Whatever it is the issue will have to be addressed so a solution can be figured out.

Here are some things to consider when confronting your loved one about their financial management problems:

Don’t blame or accuse the other person for the problem.  Arguing and blaming doesn’t help.  When you lay blame and argue it’s like telling the other person that you’re right and they are wrong.  It may be that’s the case but nobody likes to hear that.  Start off a discussion like this and you immediately turn your loved one off to what you are saying.  Remember the situation has already happened.  The point now is to figure out how to solve it.

State the facts.  Talk about what has actually happened.  Try not to get your emotions involved.  This means no name calling.  It also means talking about the situation at hand and not bringing up any past discretion.  The facts will help you find a resolution.

Talk to your loved one about how the problem arose.  How did it get to this point?  Ask what they think can be done to solve the problem.  Offer your help.  Suggest some ideas of your own as a solution.  Assure your loved one that you are their for them and that you are in this together.  This leads us to…

Take accountability for the problem with your loved one. “But it wasn’t my fault” you might say.  Maybe not directly but by sharing in the responsibility you let your loved one know that you are there to help them.  The fact that this person is a loved one makes their pain yours as well to some extent.  Take that extra step with the olive branch and assure them that together you’ll figure out a solution.

Remember you want to open the person up to discussion. Getting into a financial mess is embarrassing for most.  Your loved one probably knows they screwed up somehow so they don’t want to be reminded of how bad a blunder it was.  Listen to them.  Work on finding a way to both fix the problem at hand and prevent it from happening in the future.

Hopefully you don’t have many financial problems with loved ones in your life.  If you come across any, these ideas should help you work things out.

photo credit: timsamoff

New York State Empire Passport – Summer Saving

Beach Chair

Summer’s here!  How are you going to spend your time? Will you go to the beach?  Maybe a pool or a lake is more your speed?  Maybe go to the park for a picnic?  How about camping?  Perhaps you’ll go for a bike ride or maybe a nice hike through the woods on a historic trail?

If you live in or near New York State then you have access to all of these activities and more in New York’s State Parks!

A great way to take advantage of all that NY State Parks have to offer is to purchase the NYS Empire Passport. For $65 you get access to most of NY State’s parks and facilities.  Consider this: parking is easily $8 for Jones beach.  That means the pass pays for itself with about 7 visits to the beach!  But what’s great is the pass can be used for so much more.  In fact it’s good from April 1st until March 30th of next year.  Using it 7 times over the year is easy!

My wife has the summer off as she works in education.  This gives her all summer to go to beaches such as Jones Beach or Robert Moses State Park.  We worked it out a couple of years ago and the Empire Passport easily saves us money!  You can also use the passport to pay for parking for concerts at the Jones Beach Theater (park in an adjacent lot and walk over, it will also be easier to leave after the concert)

Outside of summer beaches we’ve also gone to Harriman State Park, Bear Mountain State Park, Fahnestock State Park, and Valley Stream State Park.  Harriman and Bear Mountain aren’t too far from the Woodbury Commons shopping center where you can find some frugal deals.

I’ve gotta say, in putting this article together I’m seeing how much we can do and what we’ve been missing out on!  I can’t wait to get out with the family again!

You can order an Empire Passport online.  The site says it could arrive in 3-4 weeks but we got ours in a week.  You can also visit a state park office and buy it direct.  Check online to see which parks sell the pass directly.  The quicker you get yous the sooner you can enjoy all that NYS Parks have to offer!

How will you use your NYS Empire Passport?

This article is #14 of the Summer Savings Series from the Money Life Network. Check out the article on the MLN site to see how you can participate in the Summer Savings Series and possibly win a $100 Amazon gift certificate! You can see tip #13 at My Investing Blog. Article #10 will be at Milk Your Money tomorrow!

 

One Hundred Pushups For A Healthy Fit Frugal Summer

One Hundred Pushups

Ok, I’m in! I’ve been seeing a lot about the site One Hundred Pushups around the blogosphere lately.  I first heard about it from Pete at Bible Money Matters via Twitter.  Then Pete posted about starting on the program.  Then I saw Pinyo at Moolanomy mentioned it.  And also JD at Get Rich/Fit Slowly fame.  And Wazzy on Twitter.  And I’m sure many others I don’t know about yet…

So what is One Hundred Pushups? It’s a site that lists out a six week program for increasing your strength to the point where, in the final test, you do one hundred pushups!

Why Pushups? From the site:

Push ups are one of the basic and most common exercises for the human body. Push ups are not only great for your chest, but do a tremendous job of defining your abs, triceps, shoulders and torso.

Push ups can be performed no matter where you are, and best of all, they are completely free – no expensive equipment or annual gym fees required! If you’re looking to develop a great chest and shoulders, you could do much worse than follow along with the hundred push ups plan. Your core strength will also go through the roof too!

Check out that second paragraph…”they are completely free.”  How much is the average gym membership? I would guess you’re paying anywhere from $250 a year to $1200 a year.  Free is a whole lot better.

And a pushup is a great measure of your overall fitness.

I’ve been looking for a good workout program for a couple of months now.  I have some free weights but I haven’t been able to commit to a consistent plan.  I’ll workout for two weeks then stop for two weeks; I don’t keep up with it.  I even almost joined a gym about a month ago.  That would have cost me about $500 for the year.  I didn’t join since I wasn’t sure I’d use it enough to justify the cost.

But with all of the bloggers already on the One Hundred Pushup band-wagon I thought I’d give it a try.  Not only is there a framework to follow for the plan (which I need) but by putting it out here on Free From Broke I’m making myself accountable for following the plan (I hope).

I’ve already done the initial test and the first day of week one (already feeling it in my chest).  I set up a spreadsheet on Google Docs so I can track my performance.  You can follow my One Hundred Pushup progress here.  I hope you check it out and help root me on!  If fact join in and we can go through this together!

Make sure you have clearance from your doctor before you start any fitness program.

So are you up to the one hundred push up training program?