This post is long overdue because I wrote the first unexpected baby expense post about 4 months ago. Baby RB40 is almost 6 months old now. Time really flies when there is a baby around. We really noticed the speed of time over the last few months because the baby changes so quickly. Before, without a baby around, everything stayed the same from month to month and before we knew it, a few years were gone.
We didn’t expect to buy a baby carrier because we already purchased a 2nd hand stroller. It turned out that we didn’t like the stroller because it’s so big and the wheel sticks. It’s much more convenient to carry the baby everywhere. We live in the city so we walk to many places and the baby carrier is great for that. It’s also quite a workout now that he’s about 16 lbs and we need all the exercise we can get.
I didn’t even know what an activity mat was until one of my friends suggested it. The little guy needed constant supervision and he hated to be by himself. He didn’t even like his swing at all. This mat is pretty good though. He can hang out here for a few minutes and play with his animal friends.
plethora of bottles and nipples
We got some hand me down Mam bottles and these worked quite well for the most part. The construction is a bit complex with multiple parts, so we have to deal with a leakage issue from time to time. We tried Nuk and Avent bottles and he didn’t like them as much. What a picky kid. I also didn’t know we had to keep buying new nipples and larger bottles as he gets older.
Daycare wasn’t a surprise, but it still hurt to write that first $1,000+ check. Ouch…. Fortunately, I signed up for the Dependent Care Assistance Program (DCAP.) This program allows you to take pre-tax deductions for dependent care expenses from your paycheck up to $5,000/year. Any tax deduction helps so I’m taking advantage of this program.
Luckily, insurance paid for all the vaccines. The vaccination shots cost around $700 each time. He got vaccinated at 2 months and 4 months so that’s about $1,500 already. He’ll have his 6 months shots soon so it’s not cheap. The little guy also caught a bug from his day care. He got a fever and he actually got both of us sick. This past 2 weeks had been even more tiring than usual because he wakes up many times in the middle of the night with breathing difficulties. Nothing is worse than being unable to help the little guy feel better. Anyway, if you are going to have a baby, you’d better make sure you have insurance to cover his hospital bills.
We’ll have to update our life insurance policies now that we have a kid. I have life insurance through work and the family will get about 7x my salary if something happens to me. This is not adequate when you have a child. I’ll have to get a term life insurance quote and increase the coverage. Mrs. RB40 will probably have to do the same as well.
That’s it for now. I understand 6 months is the turning point and everything will get better. Hopefully that’s true for us as well. The day care bill is the most expensive expense so far and I can see now why people say a kid is expensive.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.