How to Budget for a New Baby
There’s no doubt that having a baby is one of the most exciting experiences in any adult’s life. However, budgeting to add another member to your family can be difficult, and it does take some proper financial planning. While planning for a child can be stressful, it shouldn’t get you down. With a bit of care and some proper debt management planning, you can make sure that you and your wallet are prepared for the miracle of having a new baby.
Start Saving Right Away
Once you’re done celebrating the fact that you’re going to have a new baby, the first thing you need to do is open a savings account to put some money away. Ideally, you’ll want to look for a high-yield savings account that can help you earn even more on what you put in – even if that only amounts to a little bit of money overall. Before you open your savings account, figure out how much money you can use to fund it. From there, try to put a set portion of the money you earn each pay period into the savings account.
Pick up Extra Work
If you’ve got a good-paying salaried position, this may not be something you have to worry about; however, if you work an hourly job, picking up a few extra hours and doing some overtime can help you fund your savings account and make sure you’re financially prepared for your new baby. Taking on extra work in the first few months of pregnancy can also help you safeguard your finances for any time you may have to take work off due to complications in your pregnancy in the later months that may not be covered by maternity leave.
Have a Garage Sale
It might seem crazy to have a garage sale to prepare for a new baby, but getting rid of unnecessary items can help clear clutter and make space for a new child, while putting a bit of extra money in your pockets. If a garage sale doesn’t really seem like your style, or you don’t think you could get much in your area, online classifieds sites, like Craigslist or eBay, can be a great way to sell valuable items you don’t use. Don’t turn your nose up at the idea of a garage sale– some people make $1,000 or more in a single weekend while clearing space in their home! You can then take the extra money you earn and invest it in a debt management plan. If possible, you should try to pay off everyone you owe before the baby arrives.
It’s pretty natural for expectant parents to run out and by all sorts of things for their baby and begin preparing a nursery right away. After all, it’s a part of planning for a new child. However, you shouldn’t go overboard right away. Remember that you’ll be getting some great gifts at your baby shower, and some items can be found second-hand for less.
Take Care of Debt
Credit card debt can be a real problem for many new parents, and it can be a heavy burden. While you may not be able to pay off all of your existing credit card debt, enrolling in a professionally monitored debt management plan can help you get your debt under control through affordable monthly payments. Having a new child can be incredibly exciting, but without a debt management plan to pay off what you already owe, you may find it hard to handle the stress and added financial responsibility. Budgeting for a new member of the family can be difficult, but it’s entirely possible if you plan accordingly with your finances. Guest Blog by Marcela De Vivo (http://marcela.co/)