Posts Tagged ‘budget for a new baby’

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.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?