How To Financially Prepare For A Baby

Having a baby is something exciting and something to be cherished, but it doesn’t come without its own set of challenges, including financial ones. A baby is expensive, even if you don’t intend to buy all the top of the range equipment that is available. Here are some useful ways that you can financially prepare for a baby to make the process a lot more enjoyable and easy.

Budget For Maternity Pay

The specifics of your maternity pay will depend on how long you have been working at your current company, and what the terms were that you signed up for. Four states provide governmental maternity pay, and they are Rhode Island, Massachusetts, California, and New Jersey. For those in other states, it will be down to the employer, and it is not always guaranteed. Therefore, it’s best to find out as soon as possible what you might be entitled to. If it is nothing, then you will need to work out how to make some extra money when you’re not at work.

Even if you are going to receive maternity pay, it won’t be as much as your salary, so you will still need to budget in advance to ensure that you are going to be financially secure.

Sell Your Stuff

As well as money, you are going to need more space when you have a baby, so selling items around the house to give you both cash and more room makes a lot of sense. Hold a garage sale, or sell your items online through auction sites such as eBay, or on Craigslist, for example. When you have sold something, you can then use that money to buy another baby item on your list, so you’ll never be out of pocket, and you’ll always have room to put your new purchases.

Start Saving

The best thing you can do when you find out that you’re expecting a baby is to start saving. It would be a good idea to have at least three months’ worth of income put aside to ensure that you can cover everything, so the earlier you start, the better. You can start small and build up to more as you go along – you’ll have around eight months to save, so you should be able to put enough aside.

If you already have savings, one idea would be to put some of them into an investment. Take time to read up on the best robo advisors and investments to try out, and find out the Betterment returns rate so that you know what sort of profit you could be making. Remember that profit is not guaranteed, so don’t put all of your savings into one investment. This may be the ideal choice for you to bring in extra money.

Get Life Insurance

When you are single, or even if you are part of a couple, you may not consider life insurance as being important. However, as soon as you have a dependent to care for, it becomes a lot more crucial. If you were to die, life insurance would allow your child to have a comfortable life, rather than struggling. It may not be the most pleasant thought, but signing up for life insurance will give you peace of mind.

At the same time, you should also write a will to put in place certain measures to happen if you were to die when your child was still a minor, such as who would be their guardian, and what would happen to your estate.

 

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