Deciding to have a baby is one of the most important and meaningful decisions that you will ever make in your life. For this reason, you have to be very diligent about planning your finances so that you can give your child the best quality of life possible, that is, realistically within your resources. Here are some financial tips that will help you in Prepare Financially for A Baby.
Consider a Mortgage
As you are considering entering the world of parenting, it is wise to have an investment in real estate and to own rather than to rent. If you are considering having a baby in the next three to five years, then it is wise to invest in real estate property. The reason for this is that you will likely not be moving a great deal in the first years of your child’s life and it is best to be making payments towards something that you will own as an investment for later on to start building your nest egg.
Have An Aggressive Savings Program
Given that children in general, especially babies, are quite expensive, it is imperative that you are prepared for a rainy day. One way to really give yourself the financial cushion that you need is to save for three years before you decide to have a baby. Starting a baby savings account is a wonderful idea in which you will contribute the amount of your salary that you would if your child was born. This is an excellent way to prepare you for the reality of having a baby’s expenses while simultaneously saving some money to give yourself some financial insurance.
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Set Aside Money for Repairs
The preparation for your home will be expensive. This money should not be coming from the money that you saved. Thus, you need to financially prepare for your home to have many expenses. At least set aside $2,000 – $3,000 for these efforts and put the remainder in your baby savings fund. By doing this you will have extra money aside just in case of a house emergency.
Shop Around for Health Insurance
Having a baby is very expensive, especially their health costs. Thus, you need to shop around various health insurance plans and be realistically prepared for both having the baby and the doctor’s visits that will realistically follow. If you are ahead on this, it will save you a great deal of money in the long run.
Consider Working From Home
If you are planning on staying home with your child after it is born, it may be a good idea to start working from home now. You could open up your own, in-home business or even blog online. By doing this you can start getting used to the work-from-home lifestyle and already be stable before your baby comes along. It is a really good idea to do all that you can to build up your in home business before your baby comes. In order to help you do that, it is a great idea to use financial software, such as that developed by Tracy Rawle, to help you stay on top of your finances and be successful.
Start a College Fund
Having a baby is one of the most joyous decisions that you will ever make. With that being said, it is essential to prepare adequately for this important life decision and ensure that you are finically covered. By doing this, you can enjoy the first memorable years of your child’s life without stressing over affording diapers and baby formula. Additionally, you will have a future viable financial plan that will serve you well in the years to come as your child grows up.
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Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.