A baby is a wonderful blessing. However, it is commonly underestimated how much a little bundle of joy costs in their first year – which is around $12,000 and increases to $12,500 by their second birthday. Yes, they are a life blessing that comes with an insanely high price tag – and of course, parent’s will only ever want to give their children the best start in life and be fantastic role models for them. This can put a lot of pressure on new parents, especially if their finances aren’t as far into the black as they would like on their monthly bank statements. It is extremely important that stress for mum and baby are kept at a minimum whilst mum is pregnant, and then after baby arrives. Stress in the household should be kept low, as the baby will be able to sense a tense atmosphere. That being said, financial worries and debts aren’t going to sort themselves overnight, and sometimes stress is completely unavoidable, especially if money is the number one cause. But all hope is not lost – it can be arranged that your finances go on sorting themselves in the background so your little family can get off to the best start. Here are a few tips on sorting out your financial situation before your little one arrives.
Sort Out Repayments
If you are in the red, make sure you have accounted for the amount of your repayments in your outgoing budget every month. It can be extremely easy to ignore that quite a substantial amount of your money coming in every month is not your own and to let it go further and further into the red. This is crucial to avoid as soon as you learn there is going to be an addition to your family. You don’t want final demands falling through the door when you’ve had next to no sleep and a crying baby in your arms. It is time to face up to how much is owed and to start factoring that amount into your monthly budget. If you have quite a few loans and repayments, you may want to look into debt consolidation – more info here. This will streamline all of your payments into one lump sum that comes out of your pay every month, so you don’t have to faff around with a large number of direct debits coming out on different days.
Start Budgeting For Baby Now
Breaking down the yearly budget into monthly $1000 sums, you may find it easier to start budgeting now and putting the money aside every month. This will mean when you come to buy everything you need and begin nesting; you have the funds to invest in the best for your little one – every parent’s dream. You can have an amazing time picking out little outfits and preparing the baby room – without the worry of finances hanging over your head.
Overall, it is best to sit down and go through your finances with a fine-toothed comb, leaving no stone untouched, and ensuring you have a contingency fund for any unexpected costs. This means setting aside all your outgoings – including the baby’s – early and potentially even setting up a savings account for your new little one ready for the future. This will help you to feel prepared and ready for parenthood – well, as ready as you can be.