Having a baby is a wonderful thing and should be a happy time for all involved, but that doesn’t mean there won’t be any number of challenges to face. One of these, and the one that causes the most problems and potential upset, is finances. A baby will always be expensive, so being as prepared as possible before their arrival will ensure you can enjoy things a lot more. Here are some ways to do it.
Budget Your Money
No matter whether you have a large salary or a small one, and no matter whether you work for yourself or someone else, when you have a baby, whatever you’re earning will have to stretch a lot further, and that can be a hard thing to manage. Therefore, it’s a good idea – in fact, it’s an absolutely necessary idea – to have a robust, easy-to-follow budget in place so that you can account for every penny you need to spend or save.
This is not always an easy thing to do, especially if you’ve never made a budget before. It can often be a good idea to enlist the help of a fiduciary financial advisor to help you at least get started, and perhaps even to help you with other financial questions as well.
Planning investments may not help you to pay for everything your baby needs when they first arrive (although this will depend on how far in advance you started investing), but by the time they reach school age, or even, if you are more patient, college age, you should have a nice amount of money to help them with books, uniform, trips, and everything else they need. Planning and carrying out research to get as much information as possible can really help you plan for the future.
Much like investing, saving is something that is going to be useful for the future, but it will usually be used for the more immediate future. As soon as you find you are pregnant, you should start saving as much as you can. Not only will this help you when it comes to your maternity leave, but it will also mean you can buy what you need to without resorting to putting everything on credit.
Not only will you need money when your baby arrives, but you’ll also need more space (babies have a lot of furniture, toys, and equipment to deal with). Therefore, selling everything you don’t need can really help. You’ll make some extra cash, and you’ll clear the clutter at the right time. You could attend a garage sale locally, or sell on eBay or other online sites if you prefer.
If you’ve never thought about life insurance before, now is the time to do so. If something were to happen to you, you need to know that your baby would be cared for and be financially sound. Therefore, even though it is an additional cost, getting life insurance is crucial. It will give you complete peace of mind knowing that, should the worst happen, all expenses will be taken care of.