Courtney and Chad were $30,000 in debt before they started their family, but found that having twin daughters, now fourteen months old, an additional burden over just having one child as they had to buy two of everything for the girls, ...See moreCourtney and Chad were $30,000 in debt before they started their family, but found that having twin daughters, now fourteen months old, an additional burden over just having one child as they had to buy two of everything for the girls, which resulted in $20,000 in spending the first year. Their $120,000 annual joint income was also reduced when Courtney was on maternity leave, they making the decision to hire a live-in nanny as Courtney went back to work. Although they in general do not live lavishly beyond indulging in clothes for the children, they rely on their line of credit to finance whatever their spending. Beyond Chad's nicotine habit however, Gail points out that they do indulge on more "stuff" than they realized. The easiest thing that they can do financially is manage their cash flow better simply by requesting a lower tax deduction from work as they know they have a tax deduction for child care. Gail has to make them focus their spending on debt repayment to get themselves out of their hole, which may include the need for more income depending on how aggressive they want to be. She has to make them also focus on the lifetime cost of raising the girls and saving for those future costs. She also has to make Chad see the overall cost of his smoking habit. Written by
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