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How I Have Lost Over Half A Million Dollars Having Kids, So Far!

Since my son has been born, We have lost over half a million dollars in income!

How? 

My wife stopped working to be a stay-at-home mom, the day my son was born.

In her previous work life (before my son was born), my wife was an accountant.  Below is her calculated income based off of the last salary she received before becoming a stay-at-home mom.

Wages and
YearBonuses
200040,000
200142,000
200244,100
200346,305
200448,620
200551,051
200653,604
200756,284
200859,098
200962,053
$503,115.70

I added a 5% standard of living increases for every year after the first year.  I really think she would have made more that the amounts that I have here, but this gets my point across.

We never projected out our future income loss, but as you can see it’s quite substancial (Augh).   With my wife’s former income steam, we could have be living an “Upper Middle” class lifestyle by now.  Vacationing in Paris for Christmas, owning new low-end luxury cars and maybe even a vacation home in the South…  we could have been really living it up

So, the question is, would we change anything if we had it to do over again?  Hmmm maybe! (initially I was going to say no, but half a million dollars is a lot of money).  I think given the choice, I’d at least ask her to continue to work part-time.

Why would I ask that of her?

  • Half a million dollars is a lot of money!
  • It would be nice to have a little bit of security, in case I were to get laid off
  • Half a million dollars is a lot of money!!
  • The kids would learn that everybody has to go to work to earn a living
  • Half a million dollars is a lot of money!!!
  • We would be able to increase our lifestyle, at least alittle bit.
  • Half a million dollars is a lot of money!!!!
  • The extra money could be a huge emergency saving fund
  • Half a million dollars is a lot of money…, really!!!!!!
  • The extra money could have been used to fully seed the kids College funds. (I’m fighting the savings battle with it right now).

All told though, I really do like the fact that the kids have a  mom that is there for them anytime… but, half a million dollars is a lot of money!!!!!

What would you do?  Live better and larger (at least a little), or forgo the money and be a stay-at-home mom?

6 Responses to How I Have Lost Over Half A Million Dollars Having Kids, So Far!

  1. It is interesting how you broke down the actual cost of staying home. But, as you know you wouldn’t really have that amount after you deduct child care expenses if your wife were working.

  2. Taxes would take a big bite out of the money too. But it shocked me seeing how much gross income she would have made if she stayed at work.

    I definitely understand the get rich slowly mantra out there…

    My sister is having a baby, but she’s only taking off 2 weeks. Her decision to do so made me wonder how much income we lost in the last 10 years.

  3. I worked at home as well until my daughter turned 8 months and have to give up my work as analyst…before yes,security was an issue that I usually debate with my husband plus the regularity of income. But then I never regretted anything, I can spend more time with my kid, watch her grow and at the same time earn a living. It would really depend on someone perception of what kind of life they want for their kids, growing up having a good life or growing up spending vacation anywhere they want to, buy anything they desire…but missing the growing part of their kids….just my opinion…

  4. Come on Don, you actually MADE about a half million after all these years. Why? B/c a house parent’s work at home is valued at around $100,000 a year!

    You only lose half a million if you actually pay your wife the DIFFERENCE! Shhhh, don’t let her read my comment. She’ll want that raise!

  5. @Sam
    True, very true :)… I don’t think we would change the way we did things, but it’s alway fun to play with the numbers… Actually, I was kind of surprised when I calculated the total, I knew it would be high, but not that high…