There is excitement when you find out that a baby is on the way. The part that is not usually exciting is the expenses that come with preparation for the arrival of the baby. Some couples are typically prepared for the baby’s arrival, and most first-time parents do not understand the cost that comes with raising a child in this age. Because demands are ever-increasing and the prices of things are hardly decreasing every expectant parent has to put financial plans in place. Below are some tips on planning your finances with your baby in mind.
Tips on how to plan your finance
Draw up a budget
Baby things can be expensive, and when there are no coupons or discounts, the prices can almost create a hole in your pocket. Not only are baby things lovely and cute, but they are also expensive. You don’t need every beautiful baby thing that catches your eye; this is why you need a budget so that you either don’t overbuy or buy what you don’t need. For example, you don’t need many packs or pieces of onesies; your baby doesn’t need shoes immediately as that can wait for another six months. Buy essentials and use all the coupons and discount you can get. There is no shame in saving some money.
Ask friends and family for preloved baby items
Items such as car seats, strollers, walkers, cot, sterilizing sets, and blanket, among many others, can be gotten from family and friends, mostly from those that don’t have use for them again. These items don’t get spoiled or damaged easily, so they are likely to be in good condition. Clean, wash and store them up till your baby arrives. Spend your money on your baby essentials, except you can’t get preloved items before you add them to your budget.
Start saving and investing
A newborn can use up to one hundred and fifty or more diapers in the first month. If you calculate that, you know how much you can be spending on diapers and wipes alone. When you add oils and other essentials, you see that it can almost be leaving a hole in your pocket. Now is the time to start saving and investing those funds to make extra money for your little one.
Begin growing your emergency fund
An emergency fund is necessary for your entire family. You don’t want to start that after the baby arrives. You will find out that you are unable to. Even though we don’t pray for eventualities, keep piling your emergency fund until the mother and child are safely home from the hospital, and baby is growing well.
Get Insurance policy
From health insurance to life assurance, householders insurance, and insurance policies, you want to put in place for your family. Don’t just wish and pray, put proper measures in place to save you from embarrassing expenditures or situations. Speak to your insurance company about plans that could suit you.
Plan your child’s future
Your child’s college or university’s funds can begin to grow the moment you are done with hospital bills. Start putting money away and investing in your child’s name, buying properties in your child’s name if you have the means. Planning your child’s future is as essential as planning his or her entry. Don’t spend all the money throwing a lavish one-year-old party without putting some in a good investment.