There's this couple and their names are Bob and Sue.
Bob and Sue both earn $55,000 each and they live in a 1-bedroom apartment and they travel a lot. They also eat out at least once per week and they have the best comcast xfinity package, iPhones, iPads, 2 cars with 7-year car Payments and $90,000 in combined school loans.
They spend equal to what comes in and so they had a $10,000 emergency fund 5 years ago and still do today. They balance budget.
Next year, Bob and Sue are having their first child. After that, Sue will quit her job and Bob will continue earning $55,000.
In order to make room for their future home with kid, Sue and Bob are moving into a 4-bedroom home with a mortgage that is around double their current monthly rent, and the $10,000 emergency fund wlll cover the house down payment and moving expenses of $4,000 will be charged to visa rewards credit card.
They will need furniture for the baby and plan to open a pottery barn card and estimate $15,000 in furniture purchases which they will pay off when they get money later
After the baby is born, Sue plans to use her free time to go back to school and pursue a degree in interior decorating which will cost roughly $150K and the plan is to obtain a second mortgage off the home to help cover tuition
While Bob works and Sue is in school, they will need to hire a full time nanny to watch the kids so Sue can study and Sue will need a Tutor to help with homework unless Bob cuts down hours still brings $40K
Read more: Would you say this couple will have to cut back on their old spending budget?
