Of course welcoming a new born child into the family is an incredible moment of unbelievable magnitude and natural beauty, and your feelings as a proud delighted parent will be hard to replicate from any other area of your life. While at the same time, avoid becoming a wet blanket on the shear delight of having a newborn would be unrealistic to not evaluate new baby debt that can occur. Babies are expensive! Basic necessities stretch beyond the well- known requirements of clothes, milk and nappies (diapers) , and investment in these areas are short lived as your child grows. Stretching beyond this further, a new parent must realize the extra room required in a house can become a significant expense, especially when living in a renting home or apartment.
Avoiding new baby debt within the world of contemporary financial management extends beyond the outgoings of your baby’s cost and actually infiltrates the balance of employment, career success and the monetary impact upon all your life’s circle of finance. Here are some good tips to help you along the way.
Tips on How to Avoid New Baby Debt
- Avoid Unnecessary Expenses – It is highly unsustainable to buy fashionable baby clothes and to purchase luxury items of clothing as your child grows very fast and is also unlikely to have the same appreciation of style. When feeding your baby from their move onto solid foods consider feeding them fresh fruit and vegetables from the garden as this is inexpensive and offers an alternative to the dependence on supermarkets products.
- Childcare – Friends and relatives should be considered when times are tough and careful care and research should be considered when analysing the most effective childcare opportunities. A baby sitter can be a feasible option if you need a day out to complete the necessary errands of life.
- Finance – This should be managed and forecasted prior to your baby’s arrival. A knee jerk reaction to a credit card when times are tough is not a long term solution to as you will incur higher interest rates when there are other credit opportunities available. Financial opportunities and savings should be implemented prior to the baby’s arrival and to avoid dependency on child tax credits and governments schemes that can be liable to change.
- Budgeting – 10% on top of the pre-planned rate should be the budget for your outgoings as an additional safety net is essential for success. Any immediate requirements to finance your child’s needs should look at funds like these as oppose to short term costly financial solutions.
- Lifestyle – It is highly recommended to meticulously review existing expenditure that will forecast which outgoings are necessary and which can be replaced with baby’s costs. Plans should be implemented before the birth well in advance. Disposable income should avoid being thrown on niche products and should instead look at sustainable development investments for your child.
- Maternity Leave – Maternity leave may be subject to an internal policy from your company and changes between international borders so make sure you are absolutely aware of your situation in this area. Ensure you retain the full income available for your time off during pregnancy and birth and carefully manage your employment before departing. Meet with your human resources representative and discuss what other resources may be available to you and your new baby. Many companies have programs in place to help you find certified reliable child care in your area as well has pregnancy programs that will equip you with useful information. The successful management of your employment as you depart means you can successfully climb the career ladder when returning, whilst a debt free business will be crucial to your happiness as well.
Don’t allow new baby debt to surprise you, start planning not long after conception. Keep in mind that some of your largest expenses at first will be delivery fees, baby furniture and diapers. So find out what your health insurance will cover, consider buying used furniture, and start couponing for different size diapers immediately.
Author Bio – James Barnett is a writer on behalf of Cooper Matthews focusing research on the analysis of contemporary wealth management for families across the UK.