How To Manage Your Money When Having A Child

One factor that impacts when a couple decides to have kids is how their finances are. Lack of money can be stressful and this stress compounds when there is a child involved. People do not want to give their child anything but the best so if having financial troubles now it can be wise to wait to have the baby. Financial decisions now have to be made for the good of the family and spending sprees are likely to plummet in occurrence. The following are tips that will help you manage your money when having a child.

Set A Realistic Budget

Some couples do not have an established budget without children as they understand what things will cost. It is important to write out a budget as the baby could be far more expensive than you could have imagined. This will also help you figure out what expenses you can cut out as they are not necessary. There are plenty of apps that can help you budget and keep track of how much is spent in a given month. You also have to put money aside for things like the best fetal doppler or a jumper that gives your baby maximum comfort.

Factor In Increased Insurance Bills

When creating the budget mentioned above you need to factor in that health insurance is going to increase on a monthly basis with another person to insure. This is also the time to consider life insurance policies if one parent were to pass away as income will be restricted. These premiums are not too high but having some kind of policy is worth the peace of mind knowing your family will be taken care of financially. There will also probably be some hospital bills you have to pay within a few months so this can especially restrict spending money.

Due Some Freelance Work As You’ll Be Home A LOT

The freelance economy is booming with all kinds of opportunities to earn from home. Adding this income monthly might not be as difficult as you think as you will be home far more than you were in the past. People with all kinds of skills can earn whether you are a proficient writer or simply want to do data entry. Put away money not used from this for taxes and a nest egg as it will add up over the course of a few months. Two parents working while also making supplemental income will keep you financially healthy until you decide to give up freelancing to focus on your full-time job.

Set Goals For Savings/Purchases

One of the first things that many people do when they have a child is get a car that is incredibly safe. This will also add money to car insurance bills so consider getting a certified used car. Set a goal each month for how much you want to save or what purchase you want to make. Goals make holding yourself accountable far easier as you feel like you are working towards something tangible.

As you can see there are going to be changes in the way you spend money. These adjustments will take time to get used to but it is a point in life where a lot of change occurs!