Preparing for a baby is not just about creating a nursery or buying baby clothes. One of the most important preparations you can do is to fix your finances so you can accommodate new expenses that won’t stop at least for the next 21 years. Here are some financial or money tips for expecting couples.
Consider Long-Term Home Rentals
Having a baby requires an ample amount of space, especially if you plan to build a single-room nursery. If your current home is too small for your growing family and needs, consider renting a new one. Many single family homes are available to tenants through the section 8 real estate investment. There are many options in the market today, and the experts at Americas Housing Alliance, LLC project that you’re sure to find a property that will fit your new needs.
Create a Solo Budget for Your Baby
If you only have a single active account for all your expenses and even your savings, it’s time to think about how you will create and manage a budget for your baby’s needs. In fact, it is highly advisable for two-income families to have a joint account for their joint expenses. But if you only have separate accounts, you can still manage your budget effectively by creating a separate silo or tab for your baby’s expenses. There are many apps you can download and use, or you can use good old Microsoft Excel to organize and manage your expenses.
Prepare A “Money Cushion” for the First Six Months or Even One Year
You’ve probably heard that it’s best to have an emergency fund that is equivalent to your total salary for six months. But you need to remember that this should be separate from your baby’s expenses and active expenses. While you can still work, earn as much as you can and create a “money cushion” that would sustain your personal expenses for at least six months while you care for your small child. This is very important for women who cannot rely on paid maternity leaves.
Be Money Smart
Expenses for your growing baby are broad and life-long. That’s why you should be smart about money management and budgeting, so you don’t end up panicking about where to get money for that unexpected expense. Consider these tips as you prepare your finances for your growing family.