What Could You Buy Instead of a Baby?
The cost of raising a child is estimated at £10,800 per year ($15,223) - including childcare.
The average salary in the UK is £31,461. ($44,000)
That means, on average, a child will cost you over 1/3 of your income.
Now I'm no economist, but adding a one-third financial liability to your life is something to seriously think about.
This got me thinking...
What could you have 'instead' of a baby?
Here are 6 alternatives
#1. A. brand new Jaguar F-Pace within 4 years.
#2. Financial Freedom - You'd have over £500,000 ($700,000) if you invested £10,800 per year in the S&P 500, for 18 years.
#3. 20 rescue dogs and £5,000 spending money... Or a 1-year-old.
#4. A second mortgage, on a home for your aging parents to live in, rent-free.
#5. 18 months of groceries, or a 1-year old.
#6. Three different all-inclusive holidays to Mexico (per year)
Now of course you don't need to pay for childcare once your kid hits a certain age, meaning the cost would decrease significantly, but:
other costs come in (college, university, driving lessons, school trips, house deposits, wedding contributions, etc)
... So I feel justified in extrapolating those costs over 18 years.
Many parents would say...
"You can't put a price on a life"
Buuuuut, if you did, like I just have, and you want children, you either need to:
Make significant lifestyle changes to cut one-third of your expenditure.
Earn at least £11,000 per year more than you do now - to be unaffected.