Big News! We’re Having A Baby And What It Means For Our Finances!

So, I have some huge news to share today.

Tori and I are excepting our first child to be born later this year!

We’re super excited and, at the same time, we know a huge change is coming for us.

Life Changes Thanks To Baby

Adding a child is actually one of the reasons we’re making so many changes in our life this year.

As I mentioned before, we’re selling our current house, selling our rental property and building our dream home, well the dream home that we can afford. Our real dream home would be beachfront!

We didn’t make these decisions lightly. In fact, we spent quite a bit of time making each decision.

Selling the rental was an easy decision because I worried about it too much. I didn’t want to have to deal with it without a child, so adding a child to the mix made selling it an easy decision.

Buying our dream home and selling our current house was a much larger decision. We ultimately decided that since I now work from home, we would end up needing a house with a bit more space at some point in the next few years.

Instead of waiting, we decided to move ahead to a home that was a better fit for us now while interest rates are still near historic lows.

Of course, they may be near lows for years to come, but if interest rates rose just two or three percent in the next few years housing would become much more expensive for us so we decided to go ahead and make the leap now.

Financial Changes Thanks To Baby

Adding a baby to the family has huge implications on our family finances.

We’ll have a larger house payment once our new home is built, but we already have that figured into our budget. We’ll also have to start paying more for health insurance and anything the baby needs like diapers, etc.

A couple of major financial to-dos that we have on our list is getting life insurance and writing a will. These tasks aren’t fun but they will need to get done.

Those aren’t the only changes. Adding a baby and a larger house payment means we need to reevaluate our emergency fund.

We personally keep our emergency fund filled with six months of expenses, but now with these additions our expenses will be increasing. That means our emergency fund needs to increase, too.

Thankfully, selling a few items in preparation for our move in addition to our regular income has already allowed us to increase our emergency fund to our new estimated six months worth of expenses post baby.

We may have to adjust it some more after the baby is born, but we’ve got a good chunk of the money we need to save already put away.

Waiting For The Unknowns

While we’ve known of the above changes, I’m absolutely positive there will be a ton of things that need to be done that we haven’t thought of yet. There will also be expenses we didn’t dream of.

We won’t be able to think of everything, but, luckily, we still have plenty of time to figure all of this out. Whatever we don’t figure out in advance we’ll figure out on the fly and it’ll all work out in the end.

We’re excited! I’m sure you’ll see some of the lessons we learn over the next months and years here on Money Manifesto. Hopefully they help you!

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About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.


  1. Congrats! Always such an exciting time!

  2. Congratulations! Enjoy every moment, the time goes by fast. I can’t believe my oldest is going to be 22!

  3. Elizabeth Phillips says:

    Congratulations on the new arrival. It sounds like you REALLY have thought of everything in your financial universe.

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