Little Bites: Tax Filing Time & Other Chores

Holy crap, it’s March. The past month has been a blur of unexpectedly early motherhood and all the sleepless nights, diaper changes and constant feedings that come with it — and it’s been wonderful. We were caught fairly unprepared when Baby Frugalista arrived five weeks early, but thanks to family and friends, we were able to get our home ready for our new addition. They came through with meals, clothes, diapers and assorted little things that we had yet to pick up.

Now we’re settled into a routine — or as much of a routine as possible with a premature newborn. She’s gaining a lot of weight and growing at a good pace. One thing I’ve found is that our normal budget has been turned upside down. We have to factor in diapers and formula, and I’ve found that my $200 monthly grocery budget has increased to reflect that.

Now that I’m out of work on maternity leave for 6 months to spend as much time with my little girl as possible — and only getting disability and family leave payments for 3 of those — we really need to watch our spending. I’d prepared for the 3 months without income by amping up my freelance gigs while pregnant (because I’m nuts), but that doesn’t mean we should burn through that reserve. Gas prices are headed toward uncharted territory — again — and I’m happy I don’t have commuting costs for the next few months. I just filled up the gas tank the other day, and I’m sure I won’t have to refill it for a day or two. I only bought lunch at work maybe once or twice a month, but that’s a little bit of savings, too.

We’re going to do our taxes this weekend and we’re expecting a nice refund thanks to the mortgage interest and property tax deductions. I’d like to change our withholding status on our W-4 forms at work from “O” to “1” or “2” — it’s better that we get that money put back in our paychecks, rather than get it in a large tax refund.

Other things we’re working on:

Medical Coverage — We’ve added the baby to our health insurance, provided by Mr. NSF’s employer. The pre-tax cost has increased two-fold just to add one little person. Amazing, right? So instead of $220 per month in paycheck deductions, the cost will be $440 monthly.

Will — We do not have a will as of yet, and this is something I’m going to look into. There are advantages and disadvantages to wills (enough for a separate blog post), but there are other options, too, such as payable-on-death designations on accounts.

Life Insurance — Although we have some life insurance coverage through our employers, we’ll lose it if we change jobs. I’ll have to see if getting our own policies is advantageous, in case the unthinkable happens to one of us. We want to make sure our daughter is provided for and that we could keep our home in the event something happens to one of us.

I’m sure there are other things we need to consider, but I think this is a pretty good list to start with.

Leave a Reply

 

 

 

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>