The happiness, the love the joy. This is what most couples dream of when they decide to have a baby. Within this period, their mood shoots to the sky; choosing baby names, selecting different blankets and bedding in expectance of their little one. And will you blame them for their actions?
However, the financial burden that every newborn child places on the household and the cost of raising a child is always a concern to most parents. As the excitement is boiling, these are thoughts that rarely break through them. In order to avoid a heavy debt and to provide the child with everything he or she may need, it is important that parents have an effective plan for the financial cost of raising a child .
If you want to welcome a new baby in your family, here are the tips that will help you to set an effective financial plan for your new bundle of joy.
How To Plan For Your Baby
When you first consider having a baby, sit down and write out a list of all the items your baby will need when it first comes into the world. You must include items like cribs, car seats, diapers, bottles and a baby monitor. While you may receive many of these gifts at your baby shower, you must plan as if you won’t. Save and purchase these items before the baby arrives.
Analyze your current monthly income. Your new budget will now include more food, clothing, formula and diapers for your baby including toys and other items. If you have been living from pay check to pay check, it is necessary that you eliminate some unnecessary expenses to have enough money for these items. To help you get in terms with these new lifestyle, you have to start now to cut your monthly expenses.
You will need to add the new addition to your health insurance, so talk with your employer to see how much it will cost. If you don’t currently have health insurance, get some. This is because your baby will definitely make several trips to the doctor and you need to be prepared for such emergencies.
If you want your spouse and yourself to go back to work after the baby is born, now is the time to visit your area’s day-cares, find babysitters and interview them. You will need to decide which child care option is best for your baby and examine the cost.
Have your income and expenses put into home budget software such as PocketSmith, Mint or other. With this software system, you can track your income and expenses and better still, have an effective financial plan in place for the family you are preparing for. The right online home budget tool will allow you to see exactly how much raising your child will cost so you can map out a new saving plan to suit it.
If you’re expecting a baby, definitely make sure you don’t overlook the financial aspects of raising a child. With another mouth feed, you best believe that now is the time when each and every dollar really counts!