There is a lot on my mind with being a new mom. Diapers, clothing, toys, oh my. All of this costs money! Here are a few ways to buffer those costs.
- Buy a smaller house
On average a single family home costs about 300K, is 3 plus bedrooms, and about 2,500 sq. feet. My husband and I live in an 1800 sq. foot home and only plan on having one child. We have more than enough space and could downsize to save on cost.
- Buy an older car
The average cost of a new car is $32,000 and the average American takes out a $27,000 loan to buy it. It takes about 5 years to pay off a new car and you’ll be looking to buy a newer one a year after that.
What if you bucked the norm and did the following:
- Bought a $16,000 used car
- Took out a 3-year, $13,000 loan
- Kept the car for 10 years before you purchase again
That used car could save you upwards of $80K over a 30-year period
- Buy a cheaper cell phone plan
On average, a cell phone bill will cost you $140 per month. Did you know that there are other options that can cost you as little as $20 dollars?
Don’t be afraid of all the numbers. You have the flexibility to make your own decisions. With a few smart choices, you can make raising a family much more affordable.