There is no question that having a baby is a huge financial commitment, but if you long to be a parent, it shouldn’t be the deciding factor. Many people put off having children until they are established and can offer a child all the advantages, only to discover that they have waited too long and are no longer able to conceive. The decision to have a baby before you are financially secure requires trade-offs and usually means you will have to give up something. But with a little planning and preparation, it is possible for most people to save the money they need to provide for a new addition to the family.
The first step is to do some research to determine how much money you are going to need. Check with your employer regarding maternity or paternity leave provisions and visit the government website to determine what is available in terms of child benefits or grants. Make a list of everything you are going to need to care for a baby, but don’t go overboard. Stick to the must-have items, like a new car seat and cot bed mattress that meets safety standards, rather than the nice-to-have items. Often much of what you need, like baby clothes and nursery furniture can often be obtained free from friends and family, or can be purchased inexpensively at boot sales or swap-meets.
If you don’t already have a budget, you need to set one up. It will help you determine how much money you are spending and what you are spending it on. You already know how much you need to save and now you need to find ways to trim your budget, so you can start saving. Most people find that they are actually frittering away far more money than they think they are. Take a close look at your lifestyle. How often do you eat out? Do you go drinking in pubs and clubs on the weekends? Do you smoke? Are you financing an expensive car? By making some lifestyle modifications you can often cut down your monthly expenditures dramatically. It may mean that you have to cook more meals at home, have your friends over on the weekend rather than going out clubbing, give up smoking or sell your car and settle for a cheaper mode of transportation.
Also take a look at your debt load. If you have a number of credit cards and you are not paying them off in full at the end of every month, then you are making the credit card companies richer and wasting money servicing your debt. Look for ways to repay your debt more efficiently. Transfer balances from high interest cards to a card with a lower interest rate. Take a pair of scissors to those high interest credit cards and remove the temptation to spend by cutting them up. Put yourself on a cash-only budget for day-to-day expenses and when you go shopping leave your credit card at home.
You’ll be surprised at how much money you can save if you are willing to make some short term sacrifices in favour of a long-term gain; the realization of your dream to have a baby.
Hi my name is Nisha Sharma, I love to write about parenting, children and advice for mums, come visit our website, babyplanet.biz.