Quick Look 2008
Even before running the numbers for our household I can predict that 2008 will not be as financially successful for us as 2007.
In 2007 we were able to take advantage of having two incomes, one household and no children to pay down some debts and accumulate a comfortable cushion of cash for emergencies.
As 2007 draws to a close, those synergies are now history. Over the next 12 months our household is going to have two major changes:
The first change that will affect us the most is that our primary bread winner, my wife, will be down-shifting to part time with the addition of our first child. This is going to affect us in many ways:
- our total family income will decrease by at least 40%
- our family health insurance costs will increase as I add my wife and child to my employer’s plan
- our household costs will rise with more individuals in the household and for a longer period during the day
The next big change is that I will finish my residency on June 30th, 2008 and begin my 1st year of fellowship in July. This is a significant development for us financially because it is going to require a cross-country move… again
- We will need to find the most convenient, cost effective way to move our household back across the country
- we will need to find good housing that is close enough to the hospital to enable us to maintain our single vehicle household
Combined, these two changes will make it a challenge for us to simply balance our inflows and outflows. With that in mind: I look forward to the challenge and lessons that this year will bring.
I know that if we are able to continue to control our spending and make small increases in our net worth on a household income of $60,000, we will be able to make significant gains in the future as I find ways to increase our income.
Although at times the journey to financial freedom appears to be long and hard, I do take some solace in the fact that as a 30 year old, our long run of financial growth is going to come from a series of short runs strung together. Here is to 2008 being another positive short run.
February 5th, 2008 at 3:01 am
boy do your comments bring back memories. i did 3 fellowships (my wife was ready to kill me by the end). unbelievably expensive in terms of cost of move and interviewing. people also underestimate the effects of not vesting in your 401k. the $$ lost to unfunded ira’s. paying realtor fees on your homes. also, the programs usually couldn’t give a crap about you. the program you are finishing wants you there till midnight june 30, and the program you are starting wants you there june 28 so that you can go to orientation on your personal time.
i highly encourage professional movers if you can afford it at all. don’t look at it as a luxury item, look at it as cheaper than a divorce. moving with a young kid is stressful enough. good luck with your fellowship.
where will you be moving to, if you don’t mind providing a little personal info?
February 5th, 2008 at 11:55 pm
That is really quite amusing, some things don’t change, my fellowship program did indeed want me to start orientation the last week in June however is was just not possible as I am expected to be in the hospital on June 30th. They were understanding enough to let me start a week late.
My wife and child will actually be flying and meeting me there, I foresaw the fun with a cross country moving trip!! I’ll be making the move with one of my siblings. One of the benefits of living in a studio apartment is that it limits how much stuff you can actually accumulate so it shouldn’t be to hard of a move.
I prefer to be vague but in general I am moving to a much more moderately priced city although our transportation costs could skyrocket. Even so we plan to continue renting for one more year, build our cash savings and hope to buy at the bottom.