15 Replies
Hmm I'm personally quite uncomfortable with a single 3k+ household income for the long term. With 450k mortgage that's going to take a big chunk out of your monthly income. It's good that you have savings and are working out your expenses, but it sounds like a lot of it will be depleted after the renovation and baby. It's ideal to have a buffer to create a rainy day cash fund and funds in your CPF to accrue interest, especially now that you have another dependent. Eg what if he loses his job? Does his job cover spouse and child insurance? If your husband is comfortable with it, I think you can and should take a break from work. It's a good opportunity to take a step back and reevaluate your long term career choices - perhaps you can start a small home business, look out for a better job or take part time courses to switch industry for when you're ready to return to the workforce. Learn about investment too to make your spare cash worth for you (just paper trade the first year and stay away from penny stocks, I lost 95% of my savings when I was 21 and armed with textbook knowledge) Honestly I think you have to be quite frugal while a SAHM because a rainy day fund and retirement savings is really important in SG context. While making 3k there's not much social safety net in case of a misfortunate event. Perhaps upon MOP you can downgrade to a smaller flat the profits will be quite helpful in replenishing the coffers.
I think the biggest concern should be whether do you need to to topup for your monthly hdb deduction. Do a rough calculation from now till key collection, what’s the final amount you would be loaning from hdb. Also the estimated monthly payment vs husband’s monthly contribution. If there’s a shortfall, can you all afford it? Have you finalised your reno cost? I’m staying in a 5 room, reno was approx 50k (tiles flooring and carpentry) + 20k for appliances. If the above works out fine, I think 3k plus cash is enough. I’m in a similar situation, no major shopping. Expenses are mostly on food. It’s a bit hard to save any money at the moment. But not in debt. Hope all works out fine!
Yes its possible so long you both spend wisely and be very thrifty for a few years. Best if your husband has a career plan and is able to get yearly salary increments or change jobs for better salary. Get promoted, etc. to help increase family income. being SAHM save childcare costs which can be a lot. You also get close bonding with child which is priceless in my opinion. Perhaps see how else you can cut down expenses? Eg. Review and spend lower for reno costs. Plan groceries very well and only buy on discounts :) You can also consider doing home based part time/freelance jobs to supplement some income? Like mystery online shopper, etc. can go LinkedIn to find. All the best!
I suggest to minimize the Reno and save the money for rainy days. For large appliances and ticket items like mattress, seek for those no interest installments, break it down for a longer duration, this will help you to save more with the possibility of increasing salary in the future, while having enough cash on hand for emergency, buy diapers etc. Try to avoid habits like smoking, drinking, lottery and high monthly payments like expensive mobile or internet plans. Try to cook more at home instead of eating out. and finally save the baby bonus for future expenses like childcare or education.
if your mortgage is 450k over 25 years, that means monthly payment is 1.5k a month. Your husband's monthly OA with pay of 3.5k will be about 600, means you need to top up 900 cash every month. If you're frugal, should be able to cover daily expenses. But you'll be down to the dollar. it just takes one bad financial decision/ one major illness to send your family into debt. Consider working part time la. One kid no need to stay at home esp if parents can help take care
I will suggest to try to stay with the company till maternity leave ends. Then become a SAHM to save on infant care, childcare etc. With controlled spending, 3k + take home pay should be possible. Do note 50k for reno and furniture is just nice only. Have to adopt a very spendthrift lifestyle for a few years till you are ready to join the workforce again.
If you can work out with your hubby on your monthly expenses, you both can work out the best outcome for yourself. 😊 I suggest you stay on your current job till you have delivered your baby and after your maternity leave. This is your entitlement. Do part time job to supplement your household income if you wish. Do contact me if you are keen. 🤗
My husb use to earn $2k+ and ive been a sahm since my firstborn. And everything is okay financially. Now he's doing a FT food rider and im expecting our 3rd baby, and a house otw. Financially too we are doing well. :) work it out with your husband and monthly savings + spendings needed esp for your new home and baby and groceries
I’m personally uncomfortable with relying on a $3k single income. As the child grows older, their needs change (eg: childcare etc.). You can be sahm for a year ? and find a new job. And relying on ur hubby entirely may stress him out. So no for me
Hmmm I think if you plan properly and stick to it anything is possible. I would be so bold as to suggest that when baby gets a little older, you could do something part time and at your own time to bring in a little extra.