Expanding your family is an exciting and joyous time of your life. While you may be preoccupied with a whole new world of baby names, pregnancy classes and routine visits for checkups, there is one serious consideration you need to think about and that’s your finances.
Having a baby can be expensive, but there are ways in which you can save yourself money and avoid plunging into debt. This should be an enjoyable new stage of life; you don’t want it to be overshadowed with money worries.
These savvy saving tips will help you to organize your finances and feel extra-prepared for your new arrival…
Not only is buying second-hand better for the environment, but it’s also better for your bank balance too! You’ll also find that a lot of second-hand items are in fantastic condition with very little use.
Facebook has become a great tool for bagging amazing bargains from users living nearby. You could also visit Gumtree and eBay for expensive baby items such as strollers, carriers, and clothes.
The summertime is also great for picking up gems at local car boot sales; they’re well worth a rummage on a Sunday morning!
If not clothes, you can certainly buy used toys and clean them thoroughly.
Increase your income
Easier said than done, but there are so many ways you can use free time to earn money on the side.
Is there scope for you or your partner to earn a little extra cash? You could start by selling any unwanted goods such as clothing, entertainment items, and homeware.
Alternatively, there is an increasing number of ways you can make money online. Virtual assistant roles are a popular choice.
The hours are flexible, and you can work in the comfort of your own home. Alternatively, if you already have a skill or a hobby, why not turn it into a side hustle?
Whether it’s photography or painting, you could earn some extra cash by offering your services, on your own terms. An ideal way to keep the cash coming in while you’re managing with one of you on maternity pay!
Shop around for a savings account
It’s best to open up a separate savings account in preparation for the little one; this way any extra funds won’t get sucked into the monthly bills and food shop.
Work out how much money you can afford to deposit into the account each month, and get saving!
Make sure you shop around for the best deals and rates and be sure to check for any offers that are currently running. Banks often offer incentives for new customers, so don’t be afraid to ask!
Some banks even offer steep bonuses for opening checking accounts with them. But read the terms very well before you open a new account just for the sake of getting the bonus.
Plan for financial emergencies
An emergency situation has arisen, such as a car breakdown or a boiler on the blink, right after you drained your savings on essential baby supplies.
If you’re waiting for payday to arrive or you’re owed money and need a little extra cash to see you through then you could consider borrowing from friend or family or even taking out a short-term loan.
This should never be the answer to an ongoing financial issue, and should only be considered in a genuine financial emergency if you’ve exhausted other options (such as asking family) and you’re confident you can pay the loan back on time and in full.
Only buy the essentials
Finding out that you’re expecting is extremely exciting, and it might encourage you to dash to the shops for baby grows, booties, mittens, and plush bunnies. Although it might prove a challenge, try to only shop for the essentials while pregnant.
Even before the baby arrives, you will no doubt receive lots of wonderful gifts from family and friends, and you could end up with more than you need of some things! It will save you money, and space around the house.
Start a college savings fund
You can’t do it for an unborn child but you can do it in your name and later transfer the fund to your child’s name. Or, to avoid the hassles, you can open a taxable brokerage account where you can buy and hold index funds.
If you already have the little one with you, follow the steps to start 529 taxa advantaged college savings plan.
- Step 1: Select a College Savings Plan. This is the most difficult part for many savers.
- Step 2: Gather all documentation
- Step 3: Open the account, you can do so online as well.
- Step 4: Choose Investments that can minimize the risk of losing it all, take expert advice if you have to
- Step 5: Submit the Application and Deposit Funds.
- Step 6: Keep on depositing every month
Readers, how did you prepare mentally before the new one arrived or how are you doing now, since the news is broken – that special someone is arriving soon.