MILESTONE 4: Having A Baby
MILESTONE 4: HAVING A BABY
HAVING a baby is the happiest experience you’re ever likely to enjoy – but it’s also likely to be the biggest responsibility it can be daunting for many, especially when looking at the raising costs to raise a baby and then paying for their tertiary education. Whether you’re just thinking about having a baby or if you already have a baby on the way, it’s never too early to start making a “baby budget.” Having a baby would involve significant costs, from a stroller, toiletries, baby cot, diapers, toys, education, medicine and immunization. It’s not cheap to have a baby these days – and there are more expenses than you might realize – but if you plan ahead, you can make smart budget choices for your baby and your family.
RECOMMENDED FINANCIAL MOVES:
1. List your priorities
Having a baby is going to affect your family’s expenses. It is vital and wise to determine whether it makes financial sense for either one parent to quit his or her job to take care of the baby at home or continue to bringing home two salaries. Some might look into planning for baby education and also considering buying a bigger house. The expert advise to look at which is more urgently needs, it is advisable to have children once financially ready and it is much better to have 2 or 3 years apart between each child as this will help to spread out the tertiary education costs.
2. Having a post-baby financial plan
Aside from the one-time costs of getting ready for your little one, you’ll need to plan for ongoing costs throughout the year. Many new parents are surviving on credit-card balances as they make the mistake of changing their spending habits. We advise to consider doing a financial plan for all your goals in life and follow the steps on how and when you plan to achieve them.
3. Building and protect your emergency savings
We advised to have at least 6 months of your last drawn salary for emergency fund. It can be used as unforeseen medical expenses or should you be temporarily out of job or switch between jobs.
4. Buy a comprehensive insurance
As the responsibility increases owning insurance is crucial at this point of life. If something happens to either parent, there are deeper consequences once you have kids than there was before. The surviving parent will be saddened with not only grief, but immediately the need to pay for baby’s ongoing care, additional childcare expenses, in addition to the big mortgage and lifestyle you designed for two people to fund. Although you might plan to adjust your lifestyle accordingly, this won’t be an immediate process, and life insurance can help ease the transition and prevent a total financial meltdown. You can always get a term insurance which will give you maximum protection with minimum premium if your budget is thin.
5. Write a will
Have a proper will is important once you have a family especially with little ones. Should any unforeseen happened this piece of paper together with your insurance will help your family to maintain a same standard of living without you.
It’s true; a baby can cost a lot of money. But once your little one become a member of the family, you will hardly even remember what it was like without them. So plan carefully, and then prepare to enjoy your new little person. Happy Parenting!!!
“A baby will make love stronger, days shorter, nights longer, bank balance smaller, home happier, clothes dirty, the past forgotten, and the future worth living for.”