An expectant glance into your finances when you’re an expecting parent
Did you recently come to know that you’re pregnant? Soon after you make all the phone calls to your friends and family members informing them about the soon-to-be new addition to your family, you have to face all the other realities that are associated with this entire phenomenon. Though it is true that the joys of parenthood always outweigh the cons that come with it, yet you need to craft a solid financial plan so that you can make it through the next 9 months without burning a hole in your wallet. Any kind of carelessness will push you into the debt hole and you may have to go through the hassles of contacting professional companies to pay off debt. So, in order to avoid all such difficulties, soon after you share the news with 500 of your closest Facebook and Twitter friends, sit with your spouse and think about ways that will help you avoid any effect on your wallet. As there’s one more mouth to feed now, you have to be serious. Here are some financial tips to follow.
- Start communicating with your partner: The theoretical conversations that you may have had with your partner previously will now become real and the decisions have to be taken immediately. You shouldn’t assume anything now and rather discuss everything that comes in mind. Will one of you stay at home? If answered yes, then for how long? Who will be the main bread-earner? You should remain aware that things may change after the baby is born and therefore don’t plan to do something that is physically impossible for you.
- Establish an emergency fund: If you haven’t done this before, now is the best time to start off with an emergency fund. The traditional 9 months may seem to be a long time but this is truly a long gap during which you should sock away money for this purpose as there will be lots of unexpected expenses popping up when the new member is already there in your family. If you wish to have one partner staying at home after childbirth, you should practice living on one person’s income even though both are working.
- Start living within your means: This is the time when you should start living within your means. Don’t make the mistake of succumbing to the temptation of using your new baby as an excuse to buy things that you can hardly afford. Don’t think of getting a newer apartment as your existing abode will be enough to accommodate both of you and your baby. Think wisely before making big spending decisions.
- Start saving for retirement: When you have another mouth to feed, you should start worrying about your retirement savings. If your workplace offers a retirement fund like IRA or a 401(k) account, make sure you contribute a portion of your monthly income. Even though the employer doesn’t offer a matched contribution, you must save money in order to secure your retired life amidst this financial turmoil.
- Get life insurance policy: Many adults who are still single can actually spend their money more wisely than on the life insurance premiums. This concept will immediately change when you conceive. As someone else will be dependent on your income in years to come, you should get yourself a life insurance policy that can offer financial security.
Thus, when you’ve just received the good news that you’re a would-be parent, buck up and get your finances in order so that the new born can have everything that he needs without any fuss. Don’t overspend and splurge as you may fall in debt and then need to pay off debt through a professional company.
Bio: Jason Holmes is a regular writer with debtconsolidationcare.com and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like ‘Credit Score The Quintessential Therapy for a Happy Pocket’, Take Creditors and Collection Agencies to Small Claims Court’ and, My Story- From Depression To a Smile’.
Image source: workingmoms.about.com