Looking for Financial/Life Advice

Can you increase your sales income or work additional hours somewhere else?

Does your company offer any insurance options?

If she stayed home until the kids are in school, would she then go back?

I might have something in the works for a higher-paying position, but I'm not counting on it yet. Maybe another 15k a year if it comes through. My company is too small to offer benefits like insurance.

She intends to return to teaching when the kids are old enough to go to school themselves.

I was in a similar situation, but my company did offer insurance.

She stayed home about 5-6 years until both were in school. Looking back, we would do it again in a heartbeat.

Her plans were to go back soon after the baby was born, but that changed. She remembers asking me if it was an option to stay home. I said sure, but we're not going out to eat and will cut back on our spending. She is now a retired teacher and grandmother.

Half of it is medical bills from the pregnancy from last year. The other half is crap I shouldn't have bought but at least it's 0% interest til next year.

I don't have much savings. Just an emergency fund of about 2k

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Monthly bills range from $1800 – 2300/m

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Are you saying there is another 1800 to 2300 in addition to the itemized list? I'll assume it is.. That's $4750 per month.

Your income alone leaves you with $1083 positive

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The second issue is it really pains me to enroll both of my children in childcare for almost $2000 a month, but I feel like there isn’t another option. My wife talks about being a stay home mom, but I can’t fathom living on my income alone and losing her benefits like health care. We have a nice policy through the state that would be impossible to buy through the marketplace.

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Not sure what state you are in nor area. There are pros and cons to your situation. These are the ones I want you to be aware of:

1- Teaching a child at home has massive benefits. The bond, the "home training", just can not be replaced by the federal or state Gov. There is no amount of value that can be placed on that.

2- On your wife's income, She is only going to produce $25K per year after paying child care. That's means that's the target goal to make up if you wish to continue your current level of living. But most people can find expenses to trim.


Example... Is $23K car needed? If you are not upside down in it, can you sell it and buy an older model for now? That frees up $550 per month.

Example on how to make extra income at home while teaching kids are out there. I know a mom that does crafts and she does pretty well with it.

Another example is a remote/online teacher. I did a quick search for you:

Benefits
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Teaching just 60 minutes part-time per day earns you between $420-650 a month
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The pay: Depends on your experience, but averages around $9.5 per 25-minute class, i.e
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Time of day: You choose your schedule from available class slots; peak student demand hours are listed below
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Location: Conveniently teach remotely from your home - no commute!
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Pay: $14.00 to $22.00 /hour




In short, it can be done.

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Looking back, we would do it again in a heartbeat.

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Me either! It made me stronger, it made our family tighter. Kids are very well grounded and always tested higher than their piers in school.

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2- On your wife's income, She is only going to produce $25K per year after paying child care. That's means that's the target goal to make up if you wish to continue your current level of living. But most people can find expenses to trim.

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The childcare cost would really be more like $18k-$20k since they wouldn't be paying for summers, so the replacement income would need to be around $30k.

I agree with taking a look at the cars though. Would it suck to drive 2 beaters for a few years? Yeah, but wouldn't it be nice to not have to drop $1000+/month just to drive?

OP also mentioned half the credit card debt is crap he shouldn't have bought. I'd either sell the crap you shouldn't have bought if you can to pay toward that debt or figure out a way to create some self control to not spend money you don't have. I'm not trying to be a douche, but don't go into debt for stupid stuff.

What are the monthly bills? That seems like a lot. You should sell both cars and use the “equity” to pay down debt and buy cheaper cars (each under 20k).

Bro pay the credit card off today.

Do you have a savings? Retirement?

I suggest your wife look into the online teaching.

I have neighbors making great money teaching private school kids in California in an online classroom.

And the more our world turns to whatever, I see people with resources turning to alternative schooling (online with live teachers).

It is easier said than done. But trading down on the autos makes sense.
I've been able to find reliable cars for cheap. But it takes time (if you are rushed, the end result usually doesn't turn out as planned).

I understand some of the credit card debt. There is never a reason to carry it. But with medical bills, you do what you have to.
Make it your life's mission to pay that off asap. Ramen noodles. Hot dogs. Eggs. Rice. A "treat" should be a $5 pizza from little caesars. Prove to yourself that you can knock that debt off before August with the money you are currently making.

Congrats on the 2nd child.
Good luck!