When a new baby arrives, the purse strings are going to have to be tightened and unexpected expenditure will constantly be popping up. This can make maintaining a healthy financial situation a struggle. However, with a bit of money juggling, frugality and some planning for the future, it doesn’t have to be as difficult as you think it will be. If you’re about to become a new parent, here are four tips that will help to keep you on top of your finances.
Increase Your Emergency Fund
Emergencies are going to arise now that you have a newborn baby. It could be a trip to the hospital, or it could be that you’ve used way more electricity because you are awake all the time and the bill is astronomical. Whatever the emergency, you will need to have the funds to pay when the unexpected crops up. You could start a savings pot that you can add to each month, or if you are in need of immediate funds and you are a life insurance policyholder, check out a guide that tells you everything you need to know about selling a life insurance policy. You can still take out a new policy with your baby included at a later date.
Start Saving for College Now
You probably inherited some money misconceptions from your parents that you should depart from now that you have kids of your own. If you have dreams of your child going to college, then it’s wise to start saving now. College is expensive. By saving for it, you will be stopping your child getting heavily into debt later on. Going to college will reap benefits as they can use their degree to improve their job prospects and it will eventually be paid back. Whatever advantage you can give your child in life you should strive for and giving them access to a university education is one of the best. Create a savings account and start now.
You are going to have to budget accordingly. Now you have the responsibility of a child, you will have to include all of the necessities that you probably didn’t need before. This is something you should sit down and do with your partner. Take a look at areas where you can reduce spending, although ensure you still leave any little bit of extra cash to treat yourselves. If you don’t budget properly, you will very likely end up in financial trouble which will adversely affect your family’s life. It’s a simple yet effective way to take control of your finances so don’t ignore it.
Find a Passive Income
A passive income is a great way to bring in a little bit of extra income each month, and you are going to need it. Best prepared for before having a child but it can still be done after your baby has been born. Find a skill you are good at, writing is especially good for passive incomes, and monetize it. You can write eBooks, which with a bit of marketing and good writing will gain you an audience and eventually a source of money where you won’t have to do much work. This is one of the best and easiest ways to make your bank balance a bit healthier at the end of each month.