If you are reading this article it means that you want to have a baby. However, you are aware of the fact that having kids needs a lot of preparation. Especially when it comes to finances. Many soon-to-be parents don’t properly prepare themselves financially and that can get yourself in a pretty bad situation. However, in this article I will prevent such bad situation from happening. How? You are probably asking yourself. Well the answer is simple. I’ve gathered important tasks to do to prepare yourself.
With all these tasks you’ll be 100% guaranteed to have 0 financial problems while taking care of your baby. Now, enough chit-chat and let’s get down to business.
Create Spending Priorities
This is something that everyone needs to do regardless of having a child or not. I always made the mistake to buy junk instead of buying something that I truly need. It took me a while to follow this advice but now I’ve learned my lesson and now I don’t buy junk as much as I used to. Always keep track of the items you are purchasing. Also, remember to spend your money wisely before and after you have your baby.
Establish an Emergency Fund
Whether you have a family or not, this is a very important task to do. You must establish and maintain an emergency fund. However, emergency funds must hold at least six months’ worth of income. These kinds of funds may take time to develop so don’t worry. Just be very patient about it and remember that it may take a while.
Prepare for Changes in Income
If you are a stay-at-home mother then you will soon realize how your income will start to diminish. This is why I recommended establishing an emergency fund and creating spending priorities. Prepare as much as you can now so you will not have to struggle later on with less income.
Create a Budget
If you haven’t established a budget to your expenses then it’s time to start doing so. Its best to do this before you have your baby as you will be too busy taking care of your baby. Create a budget that works for you now so when baby arrives, you can easily adjust it to fit your new way of life.
Build a Smart Registry
Thebufgetmama.com states the following: “Use a site like WeeSpring to help you decide what products to register for and which ones to avoid. I will give you a few quick items to avoid right off the bat:
- Wipe Warmer.
- Pack-n-Play alongside a Bassinet: If you have a two story home, having both can be beneficial but if you only have a one story home, having both just takes up more space.
- His and Her Diaper Bags: This only comes in handy if your hubs will be helping regularly to take your kids places by himself. If he is only seldom taking them places without you, do not worry with two separate diaper bags, it only adds to the clutter.
- High Chair: Get a booster seat instead, it will grow with your child and poses less of a “hey Mommy, look how high I can climb” risk. Trust me; I am a mom of two boys who can scale a refrigerator in less than twelve seconds.
- Gender Specific Clothing: Avoid purchasing too many pieces of gender specific clothing unless you are planning on having only one child.
- Baby Specific Laundry Detergents: Use a free and clear brand of detergent or make your own instead. Baby specific detergents are ridiculously expensive and will eat up much of your budget if you are not careful”.
Have Enough Insurance
Specifically life insurance. You need to make sure that you and your significant other have enough life insurance to cover not only deaths, but also loss of income, any debts, and to leave some money for your children. Do not leave the responsibility of paying back those student loans to your family.
Once your baby is born you will soon realize how people will try to persuade you into buying almost anything for your baby. However, most of them aren’t even necessary. Stick to buying what your baby truly needs and like I said before, spend your money wisely.