South Of Metro|Top 4 Budgeting Tips for New Parents|Raising a child can be expensive – there’s no way around it. From getting baby supplies and designing the nursery to tackling insurance and resisting the urge of over-spending, it can be a lot to take in, especially if you’re expecting your first child.
This is why it’s important to get a grip on your finances, and the sooner you start, the better off you’ll be when the baby arrives. Here, a couple of budgeting tips to help get you started.
Learn how to prioritize needs over wants
Having your finances in order is crucial when starting family. However, sticking to a budget can be challenging once you start shopping for all those cute baby clothes and begin decorating the nursery. You may even feel the urge to splurge on a hi-tech stroller or some designer gear and baby clothes. When facing such temptations, you want to ask yourself whether those things are really worth their price tag.
Oftentimes, they won’t be, and your baby will do just fine with the basic items – they won’t care because they won’t know the difference. If you still want to have nice designer baby stuff, go with just one or two expensive items. Learning how to prioritize needs over wants will help you avoid unnecessary expenses, thus keeping your budget in check.
Understand that there will be an income gap
Another major change that will inevitably impact your household budget is the loss of income. Once you become parents, one of you will have to stay at home and take care of the baby, which means your cash flow will change. Moreover, if you’re planning to return to work after the baby arrives, you’ll still have to pay for childcare.
The financial pressure can really start to build up if your household income is already strained, which can have a negative impact on a mother’s mental health during pregnancy. This is why it’s important to sit down and have a conversation with your partner. Try to come up with a plan that will help soften the blow and create a financial cushion you can fall back on once the baby comes.
Prepare for the unexpected
Photo by Hutomo Abrianto on Unsplash
Preparing for parenthood is one of the most stressful times in life. Sometimes, the pressure becomes so unbearable for some couples that they decide to split. The global divorce rate is rising, and in places such as Australia, it’s not uncommon for parents to choose to go separate ways. The impact of separation is not just an emotional one – it also affects finances, which is why turning to experts for family law in Sydney is a common practice for couples in Australia, where 33% of marriages are expected to end in divorce.
Try to work out your expenses, review and reduce costs where possible, get all the entitlements, and start a savings plan to further protect your family. Preparing for the unexpected is a must, and in this situation, knowing how to manage money as a single parent will ensure you stay on top of your finances.
Look for ways to increase your household income
Whether you’re a single parent or a two-parent family, balancing your new budget is challenging. It may seem to you like there’s not enough money to cover all the major expenses. In this case, cutting expenses and finding ways to boost your household income is crucial. From refinancing your mortgage and student loans and finding a work-from-home job to selling a car and downgrading a bit, there are always some sacrifices you can make to ensure a more stable financial situation.
Only after you have tackled the finances and created a sense of security by building a financial cushion can you focus on building a strong relationship with child and taking good care of your little bundle of joy in a positive, low-stress environment.
There are many things that change substantially once the baby comes, and your income and expenses are the ones that are drastically impacted.
However, if you’re wise with your spending and make an effort to keep your budget in check, you can welcome the new addition to your family sans stress.
Mia Taylor is 33 year old blogger who writes about beauty, fashion and travel. She had always been passionate about fashion and over time she had developed a style of her own. Mia loves to mix and match and get inspire girls with her advice about outfit and accessories. She loves telling a story about her travels, providing beauty tips with readers.