Debt Consolidation

Budgeting For A New Baby

Babies are priceless, gifts of God, but when it comes to raising them, it costs a fortune. :) A new arrival brings happiness to the family, but it also brings an added financial liability on the shoulders of the wage earner of the household. Therefore, budgeting for a new baby is crucial to make sure your finances are under control and that you live a happy, comfortable life. As per a recent data published by the federal government, an average middle-income American family has to spend somewhere around a quarter million dollars to raise a baby from birth to when he/she is seventeen years old. However, it does not mean that a person must be millionaire to afford a baby. Even if you are not, you can definitely raise a baby comfortably – you just have to develop and follow a wise budgeting plan. Here’s how to do that.

Review Your Spending Patterns

It is not at all wise to plan a baby if you are already deeply drowned in debt. It is always better to get rid of your debt problems before the new arrival comes in. Budgeting for a new baby also requires you to having a good savings plan in advance. Look at your current spending patterns. Think about it – can you really afford the same pattern once the new baby joins your family? If not, you should seriously think about introducing some healthy changes in your lifestyle. For example, if you are spending a lot on cigarettes, you must try to quit smoking, not just to save money but also to save your health and offer your new baby a better living environment.

Estimate Your Expenses Once The Baby Comes In

When it comes to budgeting for a new baby, the next thing you have to do is to do a thorough calculation on what kind of new expenses will be added when the new arrival comes in. Ask your friends and family members, those who already have this experience, about the kind of baby clothing and other requirements and how much it costs and how you can do it on a budget. This discussion will get you a better idea and you will be able to plan more efficiently.

Prepare A List Of Your Present Expenses

When you make a list of your current expenses, you should try to figure out which of the current expense items are not that necessary and so should either be eliminated or reduced to a low amount. The idea is to get some idea on how much you can really save for the baby expenses. For this, you must add some specific projected expenses to the equation, such as the cost associated with in vitro fertilization and a sperm bank (if applicable in your case).

Accept That Your Household Expenses Are Going To Rise

While you are budgeting for a new baby, you must accept the fact that now onwards your household expenses are going to cost you a lot more than you were already spending. You must introduce certain adjustments to your budget accordingly. For example, you can include certain essentials in the list, such as prescription drugs and medicine, doctor visits, clothing, baby food, and diapers. A good rule of thumb can be to start by setting aside at least $200 additionally to cover such expenses. As the time passes by and you get a better grip on your monthly budget and have a more practical idea about your baby expenses, you can adjust that figure upward.

Find Child Care In Advance

When it comes to budgeting for a new baby, it is very important for you to keep in mind that the majority of child care centers often have waiting lists. Therefore, you must book the same in advance. When you do an early planning for this, you will get more time to do your research and find the most suitable center for your baby.

When Buying Baby Clothes, Be Cost-Conscious

If you have relatives and friends who want to pass on the outgrown clothes of their children for your baby, do not hesitate to accept the same. There will be a time when even you will have to pass on the outgrown clothes of your baby to someone else. It is a cycle that must go on, as it really helps people with their budgeting plans. Besides that, you can also consider buying clothes for your baby from discount stores. For example, you can do your shopping during inventory markdowns and sales.

Last, but not the least, you must also start saving for the education cost of your baby very early. You can start by setting aside as low as just $50 per month. If you are continuous in this effort, you can have as much as $6000 within ten years. Overall, while you are planning for budgeting for a new baby, make sure you keep in mind the above suggestions.

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One Response to “Budgeting For A New Baby”

  1. John says:

    Very important points . The good news is for arrival of a baby, it sounds very nice. Though it is good to have a new member in the family, yet it comes with a lot of added responsibilities. Budget for addition of a new fund which is called baby fund, it will include Baby’s medicines, food, prescription fee and a big money for new clothes, toys, diapers etc. It’s true that the babies are priceless but for good parenting, we need some extra money for them. It is good to prepare yourself before the arrival of newly born, do a perfect estimation about the expenses which are going to rise. This estimation will show you the requirement of saving money for the future. Once your budget becomes habitual of such changes you can go ahead by some extra top ups in your saving plans. All you need is to be prepare for giving a grand welcome to the newly one who is gifted to you by God and you have to do a great care of this wonderful gift and it is not as difficult as it seems to be.

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