Q. We’re expecting our first child this fall. How do we start planning a budget for our bigger family, while still paying off debt and the possibility of one of us not returning to work once the baby is born?
A. Let’s play baby. The average cost of having a baby today is about $1,300 a month. So let’s pretend you have already had a baby to see if you can afford to quit your job. Take 100 percent of the mom's salary and put it in the bank. Then take $1,300-$1,500 a month from the dad's salary and put that in the bank. If you can make it on what's left over from the father's salary, you know you can afford a baby without the mom having to return to work.
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
