By Tamia Gallego
When a baby is born, financially this usually means that there is an extra person generating expenses and there is one less income in the house at least for the first 6-12 months.
This can put a great deal of pressure on the household budget, but there are steps you can take to alleviate the financial pressure. You can plan ahead for the next few months to save money before your baby makes a grand and wonderful entrance.
Here are some tips for saving money before your baby arrives:
If it is your first baby you will have the urge to spend a lot of money on the BEST items for your baby, but the truth is that newborns don’t need a lot of the things parents rush out to buy. You can save yourself a ton of money if you concentrate on age-appropriate items in the beginning. Babies grow out of things very quickly. You can also look to the Internet to buy pre-owned items such a pram or even cribs. There’s no shame or stigma on saving money on things a child will outgrow within a matter of months.
When was the last time you actually sat down and scrutinized where your money goes? You may be surprised to find out how much of your money goes to unnecessary expenses. By actually taking the time to look at your budget and maybe doing a little trimming –you can probably save yourself quite a bit of money before the baby comes.
By paying off as many bills and credit card debts as quickly as you can, you’re not only freeing up some extra money for after the baby comes, but you’re also saving some money in interest charges. You may be paying more in interest every month than you even realise, especially if you carry a large balance on your credit cards. Make a concerted effort to pay your bills down before your baby arrives and you might even manage to get some bills paid off completely which means less to worry about.
If you have a substantial amount of money already sitting in a bank account in case of emergencies then you should do a little comparison-shopping to see if there is a different account that might earn you a higher interest rate, and therefore give you more money.
If you are going to lose an income after the baby comes then you may want to consider that now is the time to move to a less expensive home or get a less expensive car. Do what you can now in order to make the transition to parenthood as easy as possible. Practice by living on one income today.
Do you have a gym membership that you never use? Examine what you might be able to do without and start dropping all the extra services you don’t really need. Do you get take away on the weekends? You might lose a little bit of convenience when you cut out the extras but this is one of the sure ways to save before baby arrives.
You might be able to save a great deal of money by comparing the services and prices of similar companies that offer the services you purchase. When was the last time you did a comparison on your car insurance or your Internet provider? In some instances, switching from one provider to another can result in saving you quite a bit of money.
Now is the time to start saving for your baby to make life easier when the bub arrives. Chances are it will be much harder to save after the baby comes because there will be other expenses for the baby, such as trips to to the paediatrician, the chemist, and the cute kids’ clothing stores. If you manage to save up some money before your baby arrives you will be glad you made the effort.
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