The Expert Mom: Budgeting For A New Baby
A new baby brings joy and meaning to the lives of new parents. The delight of raising a tiny human being with your spouse can be an exhilarating and terrifying experience. Perhaps one of the taxing parts of having a new baby is budgeting.
There are many factors to take into account when consdiering wheter to start a family - check out this infographic below which is a very useful quick guide:
Guide created by Natera
Before, you only had to think about you and your spouse's needs and wants, but now that the baby is there, your needs and wants become second. This can be tricky as you have to pay for the current expenses on top of the baby's needs.
Below are helpful tips for you to start your budgeting. This can give you a sense of where and how to start. Read them below:
1. Expenses for the Baby
Your new baby is your priority now, and you should purchase all the baby stuff before you are due to give birth. This includes the cot, clothes, baby bottles, diapers, blankets, and many more. Consider the costs of these items before buying and buy only what is within your budget.Aside from these, you should also consider medical bills and postpartum care.
In addition, you can organize a baby shower wherein friends can give you baby stuff. Another tip is to borrow from friends who have had babies since all baby stuff is one-time use only. Not all things can be borrowed, so only borrow ones that can be passed down.Being practical can save you a lot of money.
2. Consider Your Current Expenses
Your ongoing expenses can include rent, groceries, utilities, credit card dues, gas, and many more. List them all down to avoid forgetting to pay them and risk penalty charges. A recent addition to your current expenses is paying for the nanny if you and your spouse are both working. You can reduce your current expenses by buying necessary goods only, limiting your credit card use, and saving gas by not using the car when the location is near. The excess amount can be used for another purpose.
3. Anticipate Unexpected Events
Unexpected events such as catastrophes and accidents can milk our savings dry if we are not prepared. One smart way to prepare for unexpected events is by getting homeowner's insurance, especially if your place is prone to catastrophes. To get the best deal, you should consider the average rate of home insuranceand compare prices. On top of your home insurance, you should get life insurance for critical conditions and medical insurance for short-term hospitalizations.You will deposit a particular amount each month that entitles you to a monetary benefit. This serves as your safety net, and you won't have to touch your savings in unexpected events.
4. Save Money for Your Baby's Future
This can include your baby's future school fees. You have to decide as early as now whether you want them to be enrolled in a public or private school. Discuss this with your spouse, and once this is determined, you can deposit theagreedamount monthly together with your spouse. This should be different from your and your spouse's savings account so that it remains untouched.
5. Downgrade Your Lifestyle
Whatever lavish lifestyle you and your spouse enjoyed before the baby arrived, it has to change. If you shopped in high-end stores, you'd have to shop in low-end storesnow. The same can be said fordining in expensive restaurants-you also have to dine in less expensive ones now. You'll realize how much you've been spending on unnecessary stuff, and the excess money can go to the more important expenses now.
6. Spend for Your Wants Accordingly
Spending money for wants never hurts anybody as long as it's within the budget. If there is little money left after your budgeting, you can use the money to treat yourself. You can shop, dine in your favorite restaurant once in a while, or watch a movie. You will be confident in spending this money knowing that you already set aside money for the more important ones. Continue this habit of prioritizing the most important ones, and you'll never have a problem in the future.
Having a new baby means you agree to prioritize their needs above yours. Indeed, it is a major change because everything shifts in their favor-your time, needs, and wants have to adjust. This can be organized by budgeting and planning everything to prevent a shortage of funds and being practical. The last thing you want to happen is to be short of funds without a safety net of some sort. Budgeting for a new baby can be tough, but it doesn't have to be as long as you and your spouse are responsible when it comes to finances.