My sister and I got on the topic of budgeting and maternity leave. When I was pregnant with my son, I planned on working part time after my maternity leave was over. I never anticipated that I would be emotionally unable to return to work. I remember sitting on the couch six weeks after my son was born, explaining to my husband between sobs while looking down at my son, that I couldn’t go back to work. We decided to make it work, and it has… sort of. I definitely wish sometimes that I would have planned for indefinite maternity leave when I had the chance. Things might have worked out a little more smoothly.
My advice to my sister was this. When you find out you are pregnant, do your best to begin to live on one income. Pretend your income does not exist. Stash it away in savings or apply it to the principle of a loan if you have one, but avoid using it for your month-to-month expenses. You will quickly find out what you need to do, and you’ll have your income has a safety net for when things don’t work out according to plan. You’ll know exactly how to live on one income, and if you cannot live on one income, you’ll know exactly how much you are short. You’ll have months to make changes before the baby arrives. For example, your spouse may realize he needs to ask for a promotion or look for another job. You might decided to cut back on your budget or look at moving to a less expensive home. There are tons of changes you can make, and the best time to make them, if you choose to do so, is before the baby arrives, while you still have both incomes as a cushion.
Even if you are sure that you want to return to work, don’t underestimate the emotional tug of a newborn. It’s always better to plan ahead, and if you do end up returning to work, at least you’ll have plenty of savings (or a lot less debt!).