How do I prepare over the next 5 years to have 5 kids over the 10 years after that?

Others have commented on this, but here are some numbers:

On 36k a year salary, you're talking somewhere around $1800 month (could be a little more depending on tax exemptions for kids). At 7 people in the household, you are below the poverty level.

  • Mortgage (including taxes and PMI) for a very modest 4Bd house in the midwest: $1500 / mo
  • Technically enough food for two adults: $200 / mo
  • Utilities: $200 / mo
  • Gas: $160 / mo (assuming 2 drivers/cars)
  • Minimum insurance (home/auto): $120 / mo
  • $1800 - ($1500+$200+$200+$160+$120) = -$380

At a low estimate for a healthy kid, it will be about $4k per child, or ~$333/mo, if you stay at home.

As you can probably see where I'm going with this, the numbers don't work out. You could probably barely afford going to one income now as it is, with a 1BD apartment. A child on one income now would probably break the bank.

This is a best case scenario.

I'm not wishing ill on your family/plan but in a worse, or more realistic-case, scenario the likelihood of birth defects/special needs increases as your wife approaches 40. Conception will also be more difficult past 30, and much harder after 35. A child with special needs will probably double your cost to care for, and IVF/fertility treatment is VERY expensive.

What do I see as feasible in the scenario you described? Keep both incomes, and start with 1 kid and keep working. That's pretty much how you have to raise children nowadays, and the $800-$1200 in daycare costs will still make more financial sense than dumping your job.

Complete your degree. College will only be more expensive (much more expensive) the older you get, and if you wait too long you will have to start over as your credits won't mean anything. If you stop your degree now, and plan to stay the course on the 5 kid plan, you are deciding to never have a college education unless something drastically changes.

Additionally, risking 5 children and a 7 person family on one person's income is incredibly dangerous. Especially if the second person has no potential for income (which you won't, since you'll be ~35 with no degree).

So, I hope you take some time to digest this, and talk it over with your significant other. I don't think your current plan is financially feasible.

/r/personalfinance Thread