What Do You Do With The Extra Money?
The most recent figure I’ve seen for the cost of raising a kid over the course of 18 years is $226,920 (using the US dollar amount as most of my readers are probably American). Put another way, that’s $12,607 per year, or just over $1,000 per month. Add college to that, and you’re looking at more.
Assuming you have two kids spaced two years apart, over the course of those 20 years, you would have $453,840 less disposable income than you would if you had no kids. That’s a lot of money!
Needless to say this is one of the big motivating factors for my childfree choice, and I’ve done something rather sneaky. I’ve started a bank account where I put away the cost of raising two children away every month (and lo and behold even doing this leaves me with a fair bit of disposable income). By the end of 20 years, I will have grown that bank account enough to outright buy an Aston Martin DB9 (my dream car) and put a serious down payment on my own private airplane (if not pay it off outright).
Even among all that, I still have enough take-home money (after taxes and contributing to my retirement fund) to put away for an emergency fund and travel some. Of course, this is partly because I live like a plebeian in other aspects of my life, but you get the picture.
So, sound off everyone! What do you do with all the extra disposable income your childfree life offers you? Travel? Nice clothes? What? I’d love to hear from you!
Footnote: the cost figure is assuming you don’t get any financial aid from the government (welfare, food stamps, etc.). Of course, I think it’s BS that the government will take care of someone’s children, but that’s a rant for another day.