How to Start Saving for a Baby Today
If you’re expecting a baby, then you’re probably feeling thrilled, excited, and full of love. However, as wonderful as this moment in your life may be, it’s important to remember that you’ve got a lot of preparing to do before your little bundle of joy gets here.
When the excitement wears off and the morning sickness sets in, you’ll begin to realise just how expensive it can be to raise a baby. That means that you’re going to need to take some steps to make sure that you’re financially prepared for the transition into parenthood.
A child can cost hundreds of thousands of dollars to raise overall, and that’s not to mention the costs of tutoring for expensive colleges these days. So, how can you start saving immediately?
1. Look for Costs to Cut
While cutting things out of your budget is rarely fun, it’s something that you’ll need to do with a baby on the way. Take out your household budget and get rid of items that you want, but don’t necessarily need. For instance, you don’t need to eat out at a restaurant each week, and you probably don’t need to invest in multiple streaming services either.
To make the concept of cutting down expenses feel a bit less daunting, you can also look at ways of reducing costs in the “needs” column too. For instance, if you have some expensive credit card debts to deal with, look at the loans on the market that will help to consolidate those debts into lower repayments. Even if you have bad credit. You can compare fees and interest rates to get a better idea of your options.
2. Sell Things to Make Extra Money
A lot of the biggest expenses associated with having a baby involve preparing yourself with all the items you need to raise your bundle of joy. For example, you’re going to need a car seat, a pram, a cot, and various other items too. If you have anything in your home that you’re not using, selling those items could be a great way to make a bit of extra money. For instance, look at selling old clothes, electronic, and sports equipment online.
There are also other ways that you might be able to make some extra money in the lead-up to your baby arriving. For instance, you could potentially look into getting an extra job that you can handle outside of your regular work hours. There are various online gigs available for freelance workers today.
3. Save on Expensive Baby Equipment
Speaking of that expensive baby equipment, some costs will be a lot bigger than others. For instance, you could spend hundreds of dollars on a playpen, a high-chair, and other crucial equipment. Before running out to buy these items brand-new, see whether you can save some cash by getting them second hand instead. You can get a lot of the things you need almost as good as new from charity shops and sales sites online.
Additionally, if you know anyone who had a kid a year or so ago, you could consider asking them whether you can borrow some of their old equipment. Some people might be willing to sell you it for a discount to recoup some of the money they spent.
4. Look for Ways to Replace Lost Income
Even if you’re only taking a small portion of your maternity or paternity leave when your baby arrives, you’re going to need to learn how to live on a single income for a while. This means looking for extra options to make some additional cash. Some people will be able to sell things like we mentioned above, but others will have to look into setting up some side income wherever they can.
If one parent isn’t going back to work for a while, you could consider getting them certified to become a babysitter when they’re at home. They could look after other kids in the area, along with their own, to make some extra income and save on childcare costs.
5. Open Savings Accounts Quickly
Finally, remember that the expenses associated with having a child aren’t limited to just the first couple of months with your baby. You’re going to keep having new costs to pay for throughout your child’s life – from school supplies to equipment for any hobbies they might have and more. A savings account will allow you to put aside any extra cash you have for the future of your youngster.
Consider asking your friends and family to contribute cash as gifts as part of any baby showers or early birthday parties you throw for your child too. This will help you to pad out your finances for the years to come.