People can underestimate how much being a parent will cost them, so don’t be that parent. You want to start rethinking your finances now that you’ve got a bun in the oven. The following are a few financial tips you should consider.
Determining Your Budget
The first thing you need to think about is how much all of this is going to cost. Unfortunately, things like income, savings, and personal debt play a role in determining first-time parents’ ability to afford more than the basics. Sit down with your partner and go over your personal finances to map out the road ahead. It may turn out that with a few adjustments and sacrifices, you’re able to provide a wonderful life for your newborn.
Fix Your Credit
With your due date many months away, it’s an excellent time to take steps to improve your credit score. Check if there are any errors on your credit report and go about having them fixed. Go over your personal debt situation and identify the quickest ways to elevate your standing in the eyes of creditors. Doing so will put you in a better financial position as you enter parenthood, making it easier to rent or buy a home.
Managing Loss of Income
As a new parent, you’re going to need some time to bond with and care for your baby, and some time to rest. This means you’ll have to ask your place of work to give you some time off. Time off for parents in this country isn’t great. Most companies won’t offer you full paid time off in the US. You might get some partial pay if you are lucky. You’re going to have to plan for the loss of income. It might be a good idea to consider working from home if you can, or you might want to start creating a savings account now before the baby even arrives. You don’t want to feel the weight of debt when all you should worry about is your baby.
Do your best to avoid buying things for your baby before he or she is born. What you want to do is leave everything for the baby shower. Your friends and family members all want to pitch in to help you out. You’ve got to leave them room so they can help you out. Start to look through different online baby catalogs until you find one that offers nearly everything you’ll need for your baby. Choose big items and items that you know you’ll love. Stick to essentials so that you get everything you need for your baby rather than just a bunch of toys. Send your list out early to give everyone enough time to choose what to get you.
No Big Moves
You’d be surprised how many new parents think it’s a good idea to move into a more prominent place or buy a bigger car as soon as they are pregnant. This might sound like a good idea, but you don’t want to do that. Your little bundle of joy can share your room for a few months, and your small car can probably handle one baby. What you have to remember is that your finances are about to hit a bit of a hurdle. Remember, there may be a temporary loss of income. You don’t want to make big moves like this while you are going through this transition. Be patient, and take steps only when you feel financially prepared.
It may be advantageous to talk to a financial planner as soon as you know your pregnant to see what you can do to prepare. Don’t be afraid to ask for help; this is a big step that will come with several obstacles you might not see coming.