Budget from 2 to 1

Our son will be a year and half next month and I really feel like I'm just now getting a good grasp on what our monthly expenses should be. Considering all the life changes we've been through in this short time, I guess things are finally settling into a regular routine for us.

Let's recap:

• My son, C., was born in February
• My wife, N., quits her job in March
• Pay off hospital bills for son & wife in March
• I pay off our SUV loan in April (I'm kinda regretting the SUV purchase right about now)
• Accept a new job in Mississippi in May
• Move from Alabama to Mississippi in June
• Live with my in-laws for two months
• Purchase our first house in June
• Move into new home in August

I guess I realized around December of last year that we were still spending like we still had two incomes. Going out to eat a lot (with the family or at lunch during work). My wife is way into baby clothes. Lucky for me, she only buys designer baby clothes. Also the baby necessities add up pretty quickly too. Diapers, formula (we had to buy the expensive sensitive formula), baby wipes, Diaper Genie refills.

Before I knew it, the monthly AmEx bills was really starting to eat into my checking account. It was at Christmas I realized I wouldn't have enough in the bank to cover all our costs. Unfortunately, that's when we broke out the credit cards.

The company I work for gives out yearly bonuses in March, so I knew I would have that check plus a pretty hefty tax return and economic stimulus check to cover all those over runs with some left over to help rebuild our emergency fund and start my son's 529 fund.

Our challenge now is to continue to keep a tight hold on our expenses. It's been painful considering the freedom we had prior to our son's arrival. I should be getting a promotion in December that should help us out. I'll keep updates on how we do.