Question: My husband and I moved to a new state recently, where he has started a job and I really haven’t. I’m pregnant, and due in a few months, and I definitely do not plan on working outside the home after the baby is born, so I haven’t looked for work. I’m currently earning a few dollars with a temp agency, but that is beside the point.
We’ve realized that his income alone doesn’t even cover all our fixed expenses–rent, debt payments, phone/electricity, etc. We’re tossing around the idea of a consolidation loan so our monthly payments for our various debts (car, student loan, personal loan, credit cards) will be lower, but we realize we will pay higher interest in most cases, and definitely be paying more money long-term. For right now, it seems our only other option would be bankruptcy, which we (obviously) want to avoid.
We would like to see a financial planner for help with budgeting, advice about consolidating our debts, as well as issues like life insurance and retirement planning. Is this a good idea, or is it a waste of money and should we try to go it on our own? Any advice on any of these issues?
Answer: I strongly suggest buying Amy Dacycyzyn’s book, The Complete Tightwad Gazette, before you get a financial planner. It has helped me unbelievably. Plan to breastfeed your baby(even if you are not completely comfortable with the idea, it will save you about $1000 in formula and several doctor’s bills, and I strongly think you will get used to it and eventually like it) for at least the first year, and I can point you to some webpage nursing friendly pages, use cloth diapers(the savings will add up in the first month even if you use disposables for overnight). The savings there will be around $3000 raw, and it much more environmentally friendly. If your baby sleeps with you, you don’t need a crib, but most people at least like a portable crib with a bassinet insert. I am sure you know to get some things second hand, but a car seat should always come new. The finacial planner you choose should reflect your values, and if possible your religion(on which your values probably have heavy roots). Read the book, it’s very empowering, and you can order it on amazon.com. If you want any sites on nursing or cloth diapering
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