If you are thinking about getting pregnant or already are, now is the time to think about a budget. We all know that having a baby is expensive but if you create a budget in advance the financial burden can be a little less stressful. Even if you already have a family budget it might be time to create a new budget so you can have a budget for a new baby. Having a new baby in the home means additional expenses that we aren’t always prepared for. I’ve created a list of things you might want to include in your new baby budget.
New babies require so many things and purchasing everything at once is a little overwhelming. Plan to budget for diapers, formula, clothing, car seats, crib and any other items you think you might need. Once you come up with a list of items you need for the new baby, estimate how much all of the items are going to cost you. Once you have that amount you will be able to determine how much you need to budget every paycheck to pay for everything need. You can also read the post on frugal baby care to give you more tips on saving for the new baby.
Some of the items you budget for might be given to you as gifts during a baby shower. Keep any money that you don’t use for baby supplies and roll them over to a different category.
If you are planning on working out of the home once you have your new baby, be sure to consider child care costs. This is a great time to sit down with your spouse and go over your financials. In some cases paying for a nanny or daycare works into the budget just fine. In other cases moms are just working to pay for daycare. Once you have figured how much you will be bringing home after taxes, gas to work and daycare you can decide what the best plan of action is for your family.
If you are deciding to leave your job after the baby is born you will need to start learning how to live on a little less. Don’t wait until you quit to figure out the financials. Start budgeting your money in advance to prepare you for the loss of an income.
Yes, I know your baby can’t even walk yet but planning for college in advance is key to living a debt free life. If you start planning and budgeting for college expenses now, you are less likely to be financially strapped down the road. There are several investment options when it comes to saving for college. You can speak with a financial advisor or a banker at your local bank. Having a plan and being prepared now will end up saving you money later in life!
Even just setting aside $50 to a $100 a month now will give you some piece of mind. Having some sort of savings whether it is in a CD, college savings plan or just under your bed is better than no savings at all.
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