Our Personal Finance State of the Union Address

January 24, 2007

My wife and I enter into 2007 with great “hope and opportunity”. We recently added a new member to our family and our lives have been redefined thanks to his amazing entry into this world.

Our purpose is now to provide a wonderful home for our growing young son. Our thoughts have turned to parenthood and making the world a better place for him. In light of this recent blessing, I take of stock of our ability to provide a place for him to learn, laugh, and grow.

Will & Trust
We had this prepared several years ago before we had a child. It was drafted to handle kids in our future; however, we will have it reviewed again in 2007 to be sure.

College Funding
We are making monthly contributions to a 529 plan that was established in my name while earning my Masters degree several years ago. This plan will be converted into his name in 2007.

Emergency Fund
We are $3,000 away from fully funding our emergency fund. This will be accomplished in 2007.

Our well being and property are insured with health, life, homeowners, and auto insurance policies.

Income / Expenses
My wife completes her current job in May and will become a full time mother. As we move to a single income family we’ll look to both reduce our expenses and increase our alternative income streams.

We are currently contributing the maximum allowable amounts to our 401k and Roth IRAs. Some of this money will be shifted to cover expenses once we move to a single income; however, I will continue to contribute to both.

The bad news is that we are $100,000 in debt. The good news is the debt is all from a 30 year mortgage, that we’re 5 years into. Although it is our largest liability, it provides a
roof over our head and a place our boy will learn to call home.

Executive Overview
Our personal finances seem to be in a healthy state. The growth of our net worth will slow considerably in 2007 and we’ll face new financial challenges but we’ll get through them as a family. I hope to learn as much over the next year as my son will. A tall order considering crawling, walking, and talking are among the things he’ll hopefully figure out. Stay tuned for updates on the state of our personal finances. Thanks for reading and good night!


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Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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5 Responses to Our Personal Finance State of the Union Address

  • moneysmartz

    Thanks Sun! You’re right, there are definitely some benefits to having one parent at home. As you mention, we look forward to saving a lot of money on daycare costs.

  • Sun

    Congratulations to your new baby!

    Going from 2 incomes to 1 is not going to be an easy change, especially when you have a baby to feed. However, there are arguments that the benefits of a staying-home mom are by no means less than a working professional. For us, we had to send our daughter to day care when she was 3 months old because both of us work in telecomm industry and if you are out for several years, it’s hard to get in again.

  • Bryan C. Fleming

    Sounds like you’re in great shape. Switching to 1 income can be really tuff. At least you’re thinking about it. Which is more than you can say for most people.

    – Bryan


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