Hello again! Today, I’m talking serious finances. Having a baby is such a monumental life event, but it can have an impact on your finances too.
So, it’s really important to get your finances into shape before your little bundle of joy arrives. Here are my top tips to help you financially prepare for a baby…
1. Save more money than you think you’ll need
Whether you’re thinking about having a baby or you’re already pregnant, saving money might not be top of your list of priorities. After all, it’s so much nicer to spend your money on baby clothes and nursery furniture.
However, the benefits of saving money during this time, which some may refer to as starting an emergency fund, are immeasurable. If you start saving a little more than you normally do each month now, then by the end of your maternity leave, you’ll be so happy with your decision and that extra pot of cash.
If you struggle to save, then consider downloading one of those apps or activating the banking app feature that automatically rounds up each purchase you make on your card, and transfers the difference to a savings account. Or set up a standing order each month. Even transferring £10-£20 every now and again could make a big difference!
2. Create a budget and have regular audits
If you’re going on maternity leave, chances are you’ll have less money coming in than you’re used to. A way to get a grip on your finances during this time is to sit down and go through your finances and create a budget.
Once you have a budget in mind, try your best to stick to it and perform regular audits. Look at what you’re spending each month, could you cancel any direct debits?
Gym memberships or subscriptions you’re no longer using perhaps? Regular checks will help you curb your spending and stay on track, and avoid any extra debt and stress during this precious time.
3. Pay off any debt
Speaking of debt, if you have any credit cards or loans, now is a good time to assess your debt and see if you can pay anything off before baby arrives. You might not have as much money to contribute to your debts for a while after baby arrives, so now is the ideal time to think about it.
4. Protect Your Future
Most people don’t like to think about the future. But from a financial perspective, it’s essential that you do. Especially once you’ve had a baby. If you can take steps to protect your financial future, then aside from all the other benefits, you’ll just feel more at peace.
Protecting your future involves, as mentioned above, directing money to your savings account. It’s also important to think about protecting your children’s future, too; you can do that by taking out life insurance for parents.
It’s also recommended to take out extensive home and health insurance, too. With all this in place, you’ll know that your and your family’s financial future is safe regardless of what happens.
5. Stay Ahead of Your Career
Your financial health is directly linked to the amount of money you can earn in your career. While you may be earning good money now, it’s important to think about what the future might bring. Is yours a job that AI could replace? Or will there be many others working in your profession in the coming decade?
By thinking ahead, you can take steps now to ensure that your earning power remains high when you’re ready to return to work from maternity leave. That could involve retraining for a different career or taking a course that’ll allow you to move into the higher-paying positions within your industry.
Save for later…