Just got married? Perhaps you and your partner are planning to go to the next level? We sure know how much you want to have your own family and raise your kids. However, have looked into your finances and realize otherwise?
Of course, you want the best for your child, don’t you? It would be hard to provide that without enough child are fund and savings for their daily expenses, (i.e. formula milk, diaper, etc.), healthcare, and school.
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Having children is a blessing, but let’s not forget the reality of raising one. Personal finance is already difficult to grasp and maintain, add child care to your finances and imagine whether or not you’re account is ready for it as much as you and your spouse is.
We’re no experts in this but we sure know some ways how you can lessen your financial stress when planning of having a baby.
Settle your debt
You need to be as financially stable as possible before you take the plunge, or once you discover there’s a baby on the way. You don’t want to drown in debt to cover for your hospital bills and first few months of your newborn’s expenses, do you?
First step to financial stability is to deal with your debt. You want to pay off your short-term loans, and other debts as much as you can because quite frankly, when that baby arrives, you’ll have little extra allotted for debt repayments. So as early as now, pay off as much as you can, whenever you can.
Start living within your means
Even living less so anticipating the arrival of your newborn. Once you’ve minimised or settled your debt, the next step is to watch your spendings and save up for all the essentials, hospital and maternal expenses after giving birth.
You have nine months to fill up your fund, so when the time comes to deliver your angel, there’s no pressure to get back to work immediately because of money issues.
Set up a baby savings fund
Don’t mistake this as your emergency fund; this fund is for unexpected circumstances such as accidents, leak in the kitchen or roof, immediate family needing support, or any other unforeseen instances. Your baby savings fund on the other hand, is exclusively for your child’s care and needs.
Even though you may have a separate emergency fund established, you should consider saving up extra in light of your new addition. It could be difficult and limiting when you have a handful of repairs at home, car break down expenses, and baby care needs with only your emergency fund to depend on. It could diminish in a day.
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Evaluate your income
Discuss your source(s) of income with your partner/spouse as well as how your finances flows in the household. Have you decided which one of you will be the stay-at-home parent? Perhaps you’ve thought of dropping your kid at daycare?
Have a projected budget prior to the baby’s delivery. Having an idea of how much money comes in and how much is left to budget beforehand will give you time to adjust and prepare for.
Watch your spending habits
With a lot on your plate and expenses to cover, there’ll come a day you’ll find that money is tight—these times is where you should start cutting back on unnecessary expenses such as entertainment and spontaneous shopping.
Used to frequently dining at restaurants, watching new released films, shopping for the latest gadgets and trends, and the works? You might want to limit and completely abandon those wants and focus more on your needs.
Create a fund for baby and mommy expenditures
This is a no-brainer, and we have emphasised how important this is early on in this post. Formula milk, diapers, baby clothes, regular check-up fees, and the works are the necessities to be taken care of and included in this budget.
By “mommy expenditures,” we’re referring to her delivery method of either normal or thru c-section. You’ll never know what may go wrong during the labor and delivery process, others have underwent emergency c-sections. So, it’s better to prepare your pockets for everything. If in case all goes smoothly, you have more amount in your savings now. It’s a win-win situation if you think about it.
Save up for school
We are all well aware of the rising cost of education—tuition fees, school supplies, etc. increase annually. Don’t let your children drown in student debt, save up as early as now to ensure your child(ren) has a secure educational future.
If you’re planning of having kids, better conduct a lifestyle and financial capability check beforehand to make sure you can provide all your future kids’ needs. In this day and age, we need to be practical and realistic.
What other tips you think expecting parents and spouses/partners planning for a baby alike should know? Leave a comment below!
About Chie Suarez
Chie Suarez has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for Speedy Money which offers hassle-free loans services.