If you saw what the average cost of raising a child comes to, it might give you a few palpitations, not that you would change anything of course!
It is therefore a wise move to take a good look at your finances now that you have a family and work out how to keep on top of the bills with an extra mouth to feed, and everything else that needs to be paid for.
You can learn about Kings of Kash for example, in terms of short-term borrowing, and there are plenty of other tips to consider if you don’t want to get your own version of baby blues when those bills start coming in.
Having a baby changes everything
It is an obvious thing to say, but it is not just the fact that you are now a parent that changes in your life, as you take on a whole new set of responsibilities, both financially and otherwise.
One of the first things that you should consider doing is to set about creating a baby budget, which means revising your household finance figures and working out the costs that you will be facing going forward, now that your baby has arrived.
The sort of things you need to account for and put into your weekly and monthly budget, include working out the cost of their everyday needs such as diapers, formula and everything else that they will be consuming rapidly.
You will also have some initial expenses attached to furnishings and equipment for your new baby at home, plus there is the cost of a car seat and other such essential items.
Showing some restraint
It can be extremely tempting to get carried away buying top-of-the-range gear and expensive outfits, but this can soon create a big hole in your family finances.
You might want to consider that babies grow at a rapid rate and some items of clothing might only be used a couple of times in between washes, before they have outgrown it and it is no longer needed.
If you spend too much on designer labels and high-end equipment, that money will probably be missed somewhere else when you realize that you have overspent, so show some restraint and don’t turn your nose up at gifts of clothing and equipment from friends and family, even nearly-new items, which might hardly have been used.
The weekly cost of diapers and formula, are going to make a dent in your finances, alongside everything else that you have to pay for, so it makes sense to try and buy wisely when you get the opportunity.
Buying in bulk or larger sizes will often result in a cheaper price overall, so if you can, try to stock up when the price is right, as it will save you money in the long run.
Having a baby is almost certainly going to stretch your finances like never before, so the idea of putting some spare money aside in an emergency savings fund, might seem like a tip that you might just have to skip for the time being.
It often doesn’t pay to take that sort of short-term view, especially now that you are a parent with an extra set of responsibilities.
Even putting away a modest amount of money each week or month, can make a substantial difference and give you a bit of a financial safety net when you might need it most. In an ideal world, an emergency savings fund should have a sum that is equivalent to at least three months worth of expenses, but even if you fall short of that goal, having access to some emergency cash when you really need it, is better than not having anything at all.
Make the most of what you are entitled to
You will find that there should be some tax breaks or credits that you will be entitled to now that you are a parent, so make sure you check what you can claim and make the most of any financial like this that you can get.
You might be eligible for child tax credit, which could boost your income by up to $1,000 each year and you might also be able to claim for some financial help with your child care expenses.
When you have a baby, most parents need all the financial help they can get, so don’t get the baby blues with your finances, by making sure you address your finances and get everything in order for the exciting journey ahead.
Joseph Birch is a Father of two and a frugal guy who’s loving life, enjoying the things that truly matter. He writes about personal finance matters and saving versus spending.