Thanks so much for all the kind words regarding my decision to quit! You guys give the best Internet high fives ever. Seriously, it really meant a lot and pretty much made my
day month. Now that it’s actually happening (4 days left and counting!), Johnny and I have some loose ends we need to tie up. Aside from the obvious — that we’ll have one less income — here are a few other things we need to consider, too.
Decide what to do with my 403b
My employer’s 403b plan vested at 25% each year, and since I’ve been with the company over 4 years, I’m 100% vested. Woo! I don’t know how long I’ll be able to keep the money with my employer, but we’ll either convert it to a traditional IRA or Roth IRA — keeping in mind that we’ll have to pay taxes if we put it in a Roth.
Get on Johnny’s insurance
We haven’t calculated how much Johnny’s insurance is going to cost compared to mine, but we’re guesstimating that it will be close to half the price, which is great in some ways. The only problem is that his insurance won’t be quite as robust as mine currently is. Since we’re young and healthy, though, we’ll probably still end up saving money. My only concern is that their maternity coverage isn’t that great, and a future pregnancy could cost us a hefty chunk of money. Luckily, I do have supplemental insurance through Aflac (which paid out $4,100 after we had Sal). Having Sally cost us $0, so we were able to pocket the payout. Next time around, it might just go toward paying bills, which is fine.
Recalculate our budget
Obviously, there won’t be as much money coming in, so we’re going to be a bit more purposeful with our spending and cut back where we can. Our savings will drop a good bit (booo!), so we might not spend as much on vacation or clothing and we’ll also recalculate our church tithes. We’ll share our updated budget soon!
Reevaluate our goals
We made some specific financial goals for 2014. One of our New Year’s resolutions was to save 50% of our net income. Well, there’s a good chance that won’t be happening now. But we will still be saving every month, and luckily we’ve squirreled away a good chunk of savings. We also don’t have any specific plans for home buying or second-car buying anytime soon, so our slower savings rate should be just fine and dandy.
So those, my friends, are the logistics of our new life that Johnny and I are still figuring out. The funny thing is that while I know everything’s about to change, I’m still so entrenched with my hectic work schedule that it’s kind of hard to believe. I’ll keep you all updated on how full-time SAHM-hood is going in a couple of weeks. For now, we’re still eating frozen chimichangas :).