If you’re preparing financially for a baby or a new addition to your family, you must be thinking about a million things. From planning the baby, pregnancy care, maternity products, baby’s finance and what not. We’ve listed a few things to help you prepare for the arrival of your new family member.
Create a budget :
If you’re wondering how to prepare for a baby financially, the first thing starts thinking about your budget soon. You need to start talking to your spouse the things that might impact your finances. From medicine during pregnancy to hospital charges from, baby products, diapers, and formula. For example, one of you is staying home for certain 1- 2 years after the baby arrives. You need to start preparing. Have a look at expenses that you need to cut off to counter other new expenses that will arise after the baby arrives.
Track your Expenses:
Turn your budget-plan to action. To get started, start with your checkbook log, credit card statements, and the receipts in your wallet will give you the numbers. Print them into budget worksheets, along with your household earnings and cut down luxury expenses and start saving them today.
Set up different Saving accounts:
As new you have realized that baby products are expensive. It's not just about diapers and formula, but you’ll also be looking at bigger expenses such as ceremony, rituals, baby furniture. It’s a good idea to start saving for all of it earlier. Consider a separate savings account where you can start depositing money from now. Make sure when the baby arrives, you’ll be ready for the additional expenses.
Get a life insurance plan:
Getting life insurance is part of smart financial planning. It lets us live in comfort and secured future in knowing there is a plan in place that protects and takes care of your family. It is a good time to review your existing policies and update your beneficiaries if needed. When you're getting ready to have a baby, it's fun and exciting but new parents have less idea about the expenses to come. But it's also the best time to start financially preparing for what's ahead.
Don’t let cute things distract you :
The cute tiny little outfits, strollers, and baby furniture can easily run into the thousands of rupees with you realizing it. While you should never economize on basic requirement like normal clothes, diapers, there's no reason to spend big money on outfits and shoes your child will outgrow in two weeks. Rather plan for higher goals like his