Kraft Family Finances

Complete Financial Analysis & Baby Prep Plan

Updated January 2026 • Baby arriving ~3 months
⚠️

Critical Finding: Spending Exceeds Income

In 2025, you spent an average of $9,835/month but only brought in ~$7,700/month. This $2,100/month gap has been covered by credit cards. With baby coming, this must change immediately.

💰

Windfalls Coming: ~$5,070 Expected

Your tax refund (~$2,900), retro pay (~$1,170 after tax), and contest winnings ($1,000) can eliminate your highest-interest credit card debt and build your emergency fund before baby arrives.

1

The Big Picture

Combined Income

$127,697per year gross
Mikail (Prospect Ridge) $66,650
Madison (SVVSD) $61,047
Monthly Take-Home $7,023

Total Debt

$424,048all accounts
Mortgage $334,269
Consumer Debt $89,779
High-Interest (>10%) $25,063

Monthly Obligations

$5,355debt payments only
As % of Take-Home 76.2%
Left for Living $1,668
Interest Bleeding $2,618/mo

Emergency Fund

$600current savings
Progress to $3,000 goal 20%

⚠️ Dangerously low with baby coming

2

Complete Debt Inventory

Creditor Type Balance APR Payment Interest/Mo Priority
Capital One Credit Card (Surgery) $3,647.76 26.99% $100.00 $82.04 URGENT
Apple Card Credit Card $2,232.87 25.74% $25.00 (min) $47.90 URGENT
CareCredit Medical Financing ~$2,000.00 26.99% $110.00 $44.98 HIGH
Affirm Installment (Expedia) $3,216.85 19.90% $297.85 $53.35 HIGH
SoFi Personal Debt Consolidation $13,966.00 12.17% $683.81 $141.58 MEDIUM
Kaiser Medical Medical Debt $3,457.33 0.00% $150.00 $0.00 LOW
Student Loan Wife's Education ~$5,000.00 ~5.50% $80.63 $22.92 LOW
Ent Auto 2025 Toyota Corolla $27,345.71 6.99% $450.00 $159.29 KEEP
CU Denver Auto 2024 Ford Maverick $28,912.91 6.25% $577.82 $150.59 KEEP
CHFA Mortgage Home Loan $334,268.92 6.875% $2,880.30 $1,915.08 KEEP

High-Interest Debt (>10% APR)

$25,063

This debt costs you $370/month in interest alone. Eliminating it is priority #1.

Credit Card Interest Rate

26.4%weighted average

Every $1,000 on credit cards costs you $264/year in interest.

Monthly Interest Bleed

$2,618total per month
Credit cards $175/mo
Loans $528/mo
Mortgage $1,915/mo
3

2025 Spending Analysis (Full Year)

📊

The Spending Gap

You spent $118,020 in 2025 but deposited approximately $92,400 into this account. The ~$25,000 difference came from credit cards and transfers from other accounts.

Spending by Category (Full Year 2025)

Top Spending Categories

🏠
Mortgage
$2,851/mo
$34,209/yr
💳
Credit Card Payments
$2,109/mo
$25,309/yr
🚗
Auto Loans
$943/mo
$11,312/yr
🏘️
HOA + Utilities
$756/mo
$9,069/yr
🛒
Groceries
$559/mo
$6,707/yr
🍔
Dining/Coffee
$332/mo
$3,979/yr

📊 Full "Other" Category Breakdown

Here's what makes up the remaining spending categories:

Other Loans (SoFi, Affirm, etc)$4,503
Auto Insurance (GEICO)$1,939
Shopping (Amazon, eBay)$2,113
Gas (⛽ very efficient!)$532
Auto Maintenance + Car Wash$299
Toyota Down Payment (one-time)$3,000
Phone (Xfinity Mobile)$855
Subscriptions (Apple, etc)$850
Medical/Lab$582
DMV/Tolls$430
IRS Tax Payment$299
Misc (Crypto, other)$2,654

💰 Venmo Analysis - Good News!

The $7,490 "Transfers/Venmo" looked scary, but it's mostly income:

Money IN (+$4,037)

Garage Rent (Marcos - 10 mo)+$2,000
Honeymoon Gifts (Danna)+$1,100
Item Sales (FB, misc)+$737
Spencer Gift+$200

Money OUT (-$1,468)

Food Splits (net you paid extra)-$514
Bed Purchase-$350
Other Payments-$498
MoonPay/eBay-$106

NET: You RECEIVED $2,569 more than you spent via Venmo! 🎉

🍔 Dining Out Detail

$2,417spent in 2025
Transactions 145
Average per visit $16.67
Monthly average $201

💡 Cutting to $75/mo saves $1,512/year

📦 Amazon Spending

$1,545spent in 2025
Monthly average $129
Prime membership $193/yr

💡 Cutting to $50/mo saves $948/year

📱 Subscriptions

$894spent in 2025
Apple Services ~$75/mo
Claude AI $20/mo
YouTube Premium $15/mo

💡 Review what you actually use

Monthly Income vs Spending (2025)

Green = Income    Red = Spending    Note: June spike includes $7,653 Capital One payment. March includes $3,000 Toyota down payment.

4

Windfall Deployment Strategy

💰 Incoming Windfalls

~$5,070total expected
Tax Refund (Feb-Mar) ~$2,900
Retroactive Pay (net after tax) ~$1,170
Contest Winnings $1,000

Tax notes:
• Standard deduction ($30k) beats itemized (~$27k)
• $645 business loss reduces AGI (Schedule C)
• Retro pay taxed as salary (~34% total)
• Refund based on actual 2025 deposits

🎯 Recommended Allocation

1
Emergency Fund ($600 → $2,000)
$1,400
2
Pay off Apple Card (25.74%)
$2,233
3
Pay down CareCredit (26.99%)
$1,437

Result: Apple Card Gone + ~$560 CareCredit Remaining 💪

Capital One ($3,648) + CareCredit (~$560) need ~8 months focused payoff

Before Windfall
$7,881
credit card debt
After Windfall
$4,208
Capital One + ~$560 CareCredit

Monthly Interest Saved

$80

Monthly Payments Freed

$100

Annual Savings

$2,160
5

Recommended Monthly Budget (Post-Windfall)

Fixed Expenses

Mortgage $2,880
Auto Loan (Maverick) $578
Auto Loan (Corolla) $450
SoFi Loan $684
Affirm $298
Kaiser Medical $150
Student Loan $81
HOA $486
Insurance (car) $215
Utilities $165
Phone/Internet $130
Total Fixed $6,117

Variable Expenses

Groceries $350
Gas $100
Baby Supplies $300
Dining Out $75
Subscriptions $50
Household/Personal $75
Total Variable $950

Budget Notes:
• Dining reduced from $201 → $75
• Amazon spending needs strict limits
• Review subscriptions monthly

Monthly Summary

Take-Home Income $7,023
Fixed Expenses -$6,117
Variable Expenses -$950
Monthly Surplus -$44

⚠️ Tight Budget Warning
Even with cuts, you're near break-even. Options:

  • Side income (tutoring?)
  • Sell one vehicle (-$1,028/mo)
  • Refinance SoFi if rate drops
6

Baby Financial Prep (Due in ~3 Months)

🍼 Estimated Monthly Baby Costs

Diapers $80
Formula/Food $150
Wipes/Supplies $30
Clothing (amortized) $40
Medical Copays $50
Estimated Monthly $350

🎉 Your HUGE Advantage: No Daycare!

$18,000saved per year vs. typical family

Colorado infant daycare averages $1,200-1,800/month. Family providing care saves you approximately $1,500/month.

Additional driving (30mi/day) ~$37/mo gas
Net advantage vs. daycare +$1,463/mo

✅ Baby Prep Checklist

Financial Items

Health insurance (Kaiser)

Already covered through work

HSA for medical expenses

Tax-advantaged baby costs

No daycare costs

Family providing care

!
Emergency fund to $2,000+

Use windfall to build

!
2026 Child Tax Credit

$2,000 on next year's return

Action Items

!
Get life insurance quotes

$500k term for each parent - critical with mortgage

!
Create will / name guardian

Legal protection for baby

!
Add baby to health insurance

Within 30 days of birth

!
Review work benefits

Parental leave policies at both schools

7

Long-Term Financial Outlook

Debt Payoff Timeline

Key Milestones

March 2026
Tax Refund Deployed

All credit cards paid off. $235/mo freed.

April 2026
Baby Arrives! 👶

Congratulations! Focus on family, stick to budget.

November 2026
Affirm Loan Paid Off

Another $298/mo freed automatically.

Early 2028
SoFi Loan Paid Off

$684/mo freed. Major milestone!

~2031
Consumer Debt Free! 🎉

Only mortgage remains. Auto loans paid.

Your Retirement Foundation: PERA

Combined PERA Contributions $14,047/yr
Employer Match +$14,047/yr
Total Annual $28,094
Monthly Investment $2,341

This is automatic!
You're building retirement even while paying off debt.

8

Immediate Action Items

🚨 This Week

1
STOP using all credit cards

Apple Card, Capital One, CareCredit - debit only from now on

2
Set up autopay minimums on all accounts

Never miss a payment / late fee again

3
Get life insurance quotes

Policygenius, Ladder, or through your schools

📅 This Month

1
Review and cancel unused subscriptions

Do you need all those Apple services?

2
Set dining out budget: $75/month

Use cash envelope method if needed

3
File taxes early for faster refund

Every day counts - deploy that ~$2,900!

The Bottom Line

You're not broke - you make $127,697/year combined. The problem is spending exceeds income and high-interest debt is eating your money.

~$5,070
windfalls to cut credit card debt in half
$18,000
saved annually with no daycare
2 Pensions
PERA building automatically

With discipline, you can eliminate all credit card debt by Fall 2026 and be consumer-debt-free within 5 years while raising your baby. You've got this! 💪