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Bank accounts

Making kids to save money: a good excuse to actually save money. Hint: you will be paying a lot less taxes.

By February 19, 2019 February 23rd, 2019 No Comments

At the risk of sounding a bit old, please hear me out. I promise you that this article will not be about the advantages of giving up your life of leisure and start a family at 20 so by the time you are 40 and still young, you can enjoy going to operas on your Maserati.

This is about far more than the above: it is about building wealth as a result of the opportunities that are afforded to you as a common human being because of the connections that you will make with other people with responsibilities other than feeling and entertaining themselves. It is also about setting your mind to reality – a culture if you will – that by giving up a certain lifestyle, there is a huge government-sponsored support network that allows you to have stuff that otherwise you could never dream of if you are young and single. Things like house subsidies, medical care, family help, free education, free stuff, free fun.

There is a huge push by popular culture that — self-servingly — tries to removal our family and moral compass with anger for political change, sex, drink, and entertainment subscriptions. Although these should be experienced and they are fun for a while, my advice is to curb your enthusiasm about these pursuits and learn to refocus on stuff that even the government is willing to pay for you to have. It is quite amazing to realize that the earlier you start, it is possible to start saving and even reach the 7 figure dream while having children.

Contrary to popular belief, children are cheap. Maybe even free. Here is how to make it happen

  • It is cheaper than you think. diapers, meals, doctors, toys, clothes, baby stuff. You may think all of this stuff has to be either bought brand new or of the best available quality. This is far from the truth. If creatively and lovingly planned, you can find free sources for almost all your baby needs and make meals at home that surpass all but the best main street offers. In many cities across the world, there are baby clothes exchanges, for example. Used toys cost 10% of their original cost, and are often free. For the majority of people, children’s health costs are low too. It is possible to keep a healthy child for as little as $200 a month. With almost all western nations giving tax breaks for every child you make, these costs are offset.  
  • There are tax breaks. Some countries will give you as much as $10K in yearly tax breaks for every child you have. Some will eliminate taxes altogether. Overall the idea that suddenly you are able to have several thousand extra bucks in your accounts in order to make your own investment choices instead of having to subsidize government projects. It is a new level of independence.
  • Fun becomes nearly free. Not only you have a little funny chubby clown making the lives of most people instantly hilarious, but becoming a parent puts you in touch with new funny people by default. You get to meet so many new people that you are bound to meet some wonderfully funny individuals that laugh at themselves and have access to interesting information and life experience that is so different it is funny. I have met parents that have hitchhiked the world, who live in barns in the countryside, social entrepreneurs to loan sharks. Over time, as kids grow, they bring their friends in and that is even funnier: I walked in the kitchen one day and the girls were baking cookies, except that about ⅔ of the batter was on the floor. That is true honestly hilarity.
  • There are a lot of investors that are parents. Being a parent makes one grow up fast and think of the future. Startup ideas small and large, ways of saving money, tactics to have fun on a budget, making life easier and better as a result of the family unit. Over time, ideas and partnership opportunities may abound and help you and your family thrive. Remember to stick with that you know. If ideas come around, make sure that you can manage your life and it makes sense. Test it a lot, learn a lot, make sure that you are applying yourself and your competencies, not the wishful thinking version of yourself  
  • You will live in a nicer, bigger home. That is right, the life of the bachelor apartment is over. Time for the big boy life with the electronics, the garage, the living room with a palatial ceiling, the fireplace, or whatever local equivalent you may have experienced. I am just trying to illustrate that you can have what your parents had, which would never have happened if there was no family. This is true: people are wrong to think there is no fun in the family. It is certainly better than renting a room for 2k/mo in Williamsburg.  
  • Travel can be cheaper. Free home exchange, friends with other families in welcoming countries opening their arms. the Rotary Club even, borrowing the RV, going on a shared RV trip with your neighbors. There are so many opportunities to have a lot of fun regionally and abroad that do not involve overpaying for a hostel. Sure, hotels are expensive, but you can avoid them. Food is cheap if you are able to Couchsurf, home share. Artists collectives have sharing opportunities. Airbnb can actually be awesome too.

It is tiring, poop is stinky, but it is worth it. Life as parents can provide with some of the most productive, rewarding, and meaningful experiences ever. It is cheap. The government wants you to do it because otherwise they are forced to spend money with immigration propaganda which is controversial and they only do it when we don’t want to make families. So yeah: want to get rich? Start a family!

Satoshi

Satoshi

Not Satoshi. Still, financial advice that does not suck.