Currently my wife and I both work, and we have no kids. We have no debts (besides our mortgage), live very frugally (friends call us cheap), and are roughly breaking even. We would like to have kids, but I don't know how we could afford it. If we lost my wife's income, we'd be in the hole. If she kept working, we'd have to pay someone else to watch the kid(s), which would cost us the better part of her income (and she couldn't be with them then). How do people do it?
Update: To answer a comment regarding where our money goes... The cost of living is above average where we are (near Philadelphia). Our spending breakdown is about
- 35% mortgage (including escrow)
- 17% church offering
- 12% food
- 9% transportation (fuel, insurance, service)
- 7% taxes
- 6% utilities
- 14% other?
For anyone wondering, DINK = Dual Income, No Kids; SIWK = Single Income, With Kids.