The "Cost Analysis" for Baby No 2

Following my previous post, blog "readers" (not that many though) have kindly pointed out that A&E's conversation on Baby No.2 had left out an important factor - Cost.
I even received smses to remind me that beyond sperm quality, THE COST involved should be a an important variable for consideration.
There is even one sms that read something like -
"aiya, your husband so rich, confirm can support a SAHM and 4 kids LOL"

Seriously, if we are THAT rich, we would be spotted in Porsche now and probably getting our property in River Valley/Orchard. I would not say we are poor (definitely not), but we are relatively comfortable. The decision for me to stay home is made based on our child-rearing beliefs and really, we made big adjustments in our lifestyle to accommodate that decision. I guess its just a personal preference.

Anyway, this post was born out of a rather interesting (or comical) conversation with the hubby on THE COST of Baby No.2. Trust me, between the 2 of us, I'm the one that is very mindful of THE COST. However, his usual over-logical-explanation-which- makes-perfect sense cracks me up as usual.
(Note to self - That's one reason why I marry him.)

According to him, Cost from an Economics standpoint should be viewed as Opportunity Cost and not just Price, as determined by demand and supply of market forces, which by itself is relative.

Opportunity Cost (OC) = the opportunities forgone in the choice of one expenditure over others
The OC of yours truly choosing to be a SAHM is the economic returns from working + potential future returns (measured in possible promotions, bonuses etc). The decision to have Baby No.2 does not change the OC already incurred in having Baby No.1 (albeit, w/0 Baby No.2, I'll probably be able to return to workforce earlier)
So from this perspective, it probably makes more sense to have Baby No.2 and No.3 to justify the OC incurred.

Next up, Sunk Cost
Sunk Cost = Cost incurred which cannot be recovered regardless of future events
The husband promptly reminded me the vested investment in the bundle of baby stuff that we've purchased from the US - electric breast pump, peg perego stroller, baby bjorn carrier, the 2 boxes worth of baby and toddler's clothing, Cosco car seat, the Braun electric thermometer, the tons of Fisher and Price toys etc.. these are sunk cost that cannot be recovered!
Hence, to enjoy Economics of Scale (EOS), it totally makes sense to have baby No.2 and SOON while the goods are still in good condition. EOS is also reaped when you purchase diapers in bulk for 2 babies, prepare baby food in bulk for 2 babies, organize field trips and excursions for 2 or more kids etc etc.

Yup, thats my hubby for you!
After OC, Sunk Cost and EOS, the argument based on ROI and Indifference Curve ensued.

I shall not even attempt to bore you guys with my attempted rebuttal based on the Diminishing Marginal Utility aka (Pleasure) of child rearing.
Boy, did we we have a good laugh over this so-called "rationalization"!

But really, parenthood is a lifelong responsibility.
How does one monetise the energy, effort, headache and worries that ensued with parenthood? How do I quantify also the joy and fulfillment in watching the little one's journey to adulthood?
I cant begin to put a price tag to it.

I read this beautiful quote by Elizabeth Stone years back:

“Making the decision to have a child is momentous. It is to decide forever to have your heart go walking around outside your body.”



What a beautiful and profound statement. I'm only JUST beginning to comprehend this.

To Parenthood.

SAHM

I'm really enjoying my life as a SAHM (Stay-at-home-mum)
No Joke. I thought I would have gone crazy by Week 3 but I didnt.

During our stay in Newport, Rhode Island, our neighbourhood was full of SAHMs. The playground just a few streets from our house became the de-factor meeting place for the mummies. Strollers parked in a row, children screaming together and the mummies gathered at a corner gossiping, oops I meant catching up with each other. I could NEVER imagine myself being one.


BUT, never say never.

The daily routine is mundane to the point of boring at times. My world now revolves around feeding, burping, changing soiled diapers, putting him to bed, the daily walk around the neighbourhood park. My new-found gadgets - flash cards upon flash cards, kids stories books, rattle, soft toys. Yet despite the "mundaneness", everyday is also an adventure. I discover new things about Baby C and me. I learn new tricks with him and simply enjoying the time spent together. I'm so glad that I will be able to witness my little darling grows, to be there for him at every milestone of his growing years.

But being a SAHM also means there are sacrifices we need to make together as a family. Gone are the days when the husband buys any gadget at will and I dont think twice spending on a spa massage session.We've downgraded our Residence and settled for a cheaper car. We no longer eat out so often, probably only once a week. We watched our expenses ever so carefully. We have postponed our holiday plans indefinitely and that also means no more designer bags, shoes and watches for me for quite a (long) while.

Yet, I'm contented.
(strange choice of word ya)
But I am.

I'm so grateful to my Hubby who worked so hard to bring in the bacon so that I can do what I've always wanted to do - be there for my children.

Do I miss working? Yes I do
Do I miss being financially independent? Yes I do
Do I miss the mental stimulation and the intellectual debates in school? Yes I do

But I believe there is a season for everything.
Season to Chiong for ministry; Season to study; Season to work; Season to play
It varies for different ones. I salute and admire mothers in church who juggle work,ministry and family, its really NO MEAN FEAT. But for me, this is the season in my life that I want to be there Full Time for my family and kids and be THE BEST I can be.

I read this somewhere: "The Days are Long, but The Years are Short"

I wanna hold Christian when he still wants me; I wanna learn with Christian when he still needs me; I wanna take a walk with him daily when he is still willing and comfort him when he would still run to me. There will come a time when he will stretch his wings and soar. I want to be able to look back and say once again:

I'm Contented

My darling angel, you are worth every sacrifice :)

Doing Well by Doing Good

Doing Well by Doing Good
This is a rather popular book that was featured a few years back.
For those who attend CHC, you might recall Pst Tan preaching on it a few years back.



Was reminded about this while reading the Straits Times today.
The Straits Times did a feature story on India's development, particularly, Singaporeans who are making a living residing in the various parts of India.
One of the man featured was Mr Ding Eu-wen, a 25-year old North Western University graduate working for an NGO EMBRACE in Bangalore Tarnataka. EMBRACE is a start-up NGO which manufactures infant-warmer as an alternative to infant incubator. A traditional infant incubator costs about USD20,000 to manufacture. Because of the high cost involved, many hospitals in the rural part of India which cannot afford one within the hospital sees premature infants dying every day. The infant warmer which costs USD200 is a much cheaper alternative, and potentially a life saver.

This post is not dedicated to promoting infant-warmer.
Mr Ding could have easily landed a job in any MNCs given his education and family background. But the 25-year old chose to devote his time working for a start-up NGO because he wanted to make a difference. It's interesting that this former ACJC student scorned at the idea of being a social worker at age 17 because quote "there's no real money in it"
So what caused the change of mind?
He attributed it to the increased exposure while travelling to different parts of the world.
The more he travels, he felt an increasing sense of responsibility to DO something.

It really got me thinking once again.
What do I want to do with my life? And more importantly, what do I want for Baby C?
The husband and I have been talking about this over the past 1 year.

Daddy A is a very intellectual person, and given his education background, he wants Baby C to follow his footsteps and do very well in his studies. Amen to that.
Haha I remember while we were at Harvard University in February this year, Daddy A was whispering to my tummy and say "Baby C, welcome to your future university!"

Harvard University

However we both agreed that beyond being bookworms, we would like our children to be exposed to social realities at a young age and we want to travel with them and show them the different kind of life beyond what Singapore can offer.

I think our short stint in the USA changed our perspective.
We talk about making a difference, do something positive with our lives. We preached that alot in church. But it is only when we had a chance to live and travel in the US, venturing into the inner cities, visiting poor suburbs as well as wealthy cities, that the whole spectrum of experiences got us thinking. These travel experiences shape our perspective on what matters in life and what we want to do with it. There is a world out there beyond CHC, beyond Big Days, beyond Singapore that needs someone to make a difference.

I hope Baby C can experience first hand the different cultures and societies
(both the Ups and the Downs)
I want him to start understanding the concept of Doing well by Doing Good at a young age.
First up, it gonna start with the parents. Would love to bring Baby C with me to the old folks home and Children's home soon when he is slightly older.

Daddy A and I are going to commit to our first property very soon, a resale HDB at Serangoon Central. Well meaning friends have encouraged us to go for a private property, seeing that it makes alot more sense from an investment standpoint, especially now. But we've decided on a much cheaper alternative as we felt that it is more worthwhile to save up the spare cash for Baby C's education, and more importantly, to fund our family's travel expenses with BabyC.
We hope (and think) that the exposure gleaned from these trips would be more valuable to Baby C than living in a private condominium.
Haha HK Disneyland, Orlando Universal Studios are probably not going to be on Baby C's travel list anytime soon (not our idea kinda trips. just personal preference). Hopefully Cambodia and Taiwan are 2 destinations that we can work towards pretty soon. :)

Ok enough of rambling.
I'm so inspired to re-read the book "Doing well by Doing good" again.
Time to pray and hit the sack
Selah to all...

ChannelNewsBetter

Mr. Brown and Mr. Miyagi are 2 of my favourite local bloggers.
Been following their blogs since 3 to 4 years back.
Though they can be pretty critical of the local political scene at times, but I must say that some of their comments are pretty insightful.
To be honest, some of their articles are excellent materials for Social Studies class,
and it aided alot in my teaching preparation.

Below is taken from Mr. Miyagi's blog.

The same facts on Temasek's Holdings networth,
completely different spin.
2 sides of the same reporting?

Never trust the media at face value :)

WSJ Article vs CNA article