Having a baby is a wonderful experience, but it can also be quite costly. Most parents will tell you that you can never be fully prepared for your new bundle of joy and the financial costs you may incur.
Trimming expenses now will help you prepare for the birth of your new addition. The following are some handy tips to help get your finances in order before the baby arrives.
Assess Your Current Financial Position
Go over your finances and determine how much money you make and the expenses that come with supporting a new baby.
Are you making enough money to put away for your child’s college fund? Will you still be able to put away additional money to save for retirement?
How Much Credit Card Debt Do You Have?
If you have several credit cards with balances left on them, you need to make sure they are either paid off or reduced as much as possible.
Look at several credit card comparisons and choose the credit cards low interest rates and get rid of the cards with the highest fees. Take advantage of 0 percent balance transfers to consolidate debt and to help pay them off immediately.
Put Away Money
If you don’t have any debt to pay down, now is a good time to put money away in a savings account. This allows you to have access to cash in case of an emergency.
It also helps you after the baby is born and you find your budget extremely tight during certain times of the month.
Who Will Watch the Baby?
Another thing to consider after the baby is born is deciding who will take care of the child. Does your budget allow for one parent to stay at home and care for the baby? You may also want to run some numbers to see if it’s worth it to put your newborn in child care.
Some parents even work different shifts which allow parents to save additional funds on child care.
Think about where you are going to live before the baby arrives. Do you want to stay in a tiny apartment in the city, or are you looking to settle into a home with a yard in the suburbs? Your new residence should be able to fit into your budget easily and still allow you to afford additional expenses for the new baby.
A new child may be expensive, but they are the joy to any family. When it comes down to it, you really can’t put a price on your newborn, but it is definitely in your best interest to make sure your finances are in order prior to your little one’s arrival.