Reply to Sad, just had to cease contributions to my 401K in order to budget in daycare costs for new baby :(

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Reply to "Sad, just had to cease contributions to my 401K in order to budget in daycare costs for new baby :("

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[quote=Anonymous]I would seriously cut all else from your budget first. Like, no cable, no smartphones, no memberships, no eating out, get movies from the library, etc before cutting retirement. Literally cut everything to the bone. If you're paying $1600 for two kids for daycare, you are paying very very little for this area and for a combined salary of $140K -- unless your mortgage is incredibly high, you should be able to save money on top of your daycare payments and bills with that salary.

We cut the costs above in addition to cutting retirement contributions when saving up for our DP on our house a couple years ago. It was a boost to our savings and we've kept up most of those cost-cutting measures now that we're fully funding our 401Ks again. At 31, we have about $200K more than you guys have in total, so in your late 30s at the retirement funding level you have, I would SERIOUSLY consider not cutting into your retirement savings if at all possible.

Our fee-based financial planner was about $2000 -- and was very helpful (finally motivated us to diversify properly, write our wills, set up the right sort of accounts for our family). It's probably not a great use of your money now, but when you have the ability to contribute again, look into it.[/quote]

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