Family

Get Your Finances Family Fit

When you start thinking about increasing the size of your family, one of the first things you might wonder is, “Can I afford it?” Figuring out what finances will look like after the addition of children is the source of a great deal of stress for many parents. If you’re ready to get your finances family fit, this is the best place to start.

Think about your financial plans for after baby. Will both you and your spouse be returning to work after your child arrives? That means you need to be able to budget for daycare. If one of you plans to stay at home, on the other hand, you’ll need to be able to do without that income. Make sure you understand what your financial picture will look like long before the baby arrives.

Plan for the future. You don’t know what will happen when your baby is born. Complications or trouble after birth can lead to serious medical expenses, and children don’t always come cheap! Make sure you have the funds in savings to handle some extra expenses. And if you have health insurance, make sure you call your insurer as soon as possible after baby is born, by adding them to your policy. This will make sure their birth-related medical expenses are covered.

Set up the budget. Do you want to help send your child to college? The earlier you start planning, the better. What about buying that first car? Will you need a larger home to account for your expanding family? Set up your budget to account for your plans for the future and get used to living within it as soon as possible.

Examine your current expenses. What are you really spending your money on every month? If you’re struggling to get by now, your budget will be even tighter after a baby arrives. On the other hand, if you have plenty of disposable income, there are some great places to shift around funds to be more prepared for the coming addition to your family.

Planning for a baby changes everything – especially your finances. If you’re ready to add to your family, you need to take a hard look at your budget and image how it will work differently when your new arrival gets here. If you need a temporary loan to help you over the hump while you are dealing with new baby expenses, please contact us.

If you would like to reduce stress by making a simple budget, click here.