It can be difficult enough to budget in everyday life, which is why experts have said that two-thirds of the American population do not have a successful budget, so imagine those that are in the majority that do not, what kind of free for all it will be when a baby is brought into this world. If you have set up an emergency fund, budgeted for monthly expenses, set ample amount of contributions to savings accounts, if there is money left over, how do you budget for a baby?
Getting Started
So, the scary part is probably now settled in that you are going to be a parent coming up shortly so it is normal to start to panic to wonder how you are going to get everything needed to house this baby that will be coming along shortly. The nursery, which should at least include a crib, rocking chair, changing table, dresser, should be purchased, as well as giving the room a nice fresh coat of paint. You can figure about $1,000 to give your old computer room a baby update.
Essential Supplies
The nursery is painted and set up, so now what to do about the stroller, car seat, and basically the essentials to raise an infant? Hopefully you can have a baby registry. With the generous group of friends in our circle, we have all given gifts at various times, so invite your family, friends, and co-workers to help graciously start to baby proof your home. After this, you can expect the cost of diapers and clothes to continue to be spent.
Time Away from Work
Your home is now baby proofed but how do you ensure that your day job keeps the money flowing in? See what your maternity leave entails. Taking a look now will give you ample time to store away vacation days if you need to use them as part of receiving full pay, if your employer does not give say twelve full paid weeks away for the mother, and a couple weeks for the father.
What Happens When You Go Back to Work?
Eventually you will have to return to work to be able to continue to afford this new addition to your family, but who is going to care for while you are away? With the cost of daycare averaging about $50 per day, that can add up to a mortgage amount extra that you will be paying to ensure that your child is care for, and will probably continue to pay until they go to school.
Planning for the Future
It can definitely be overwhelming to not only adjust your life for the birth of your child, but to take on the extra financial responsibilities that come along with it. You will no doubt have to sacrifice a few things in your life that will now be deemed “unnecessary expenses” in order to free up extra money to plan for a future college tuition, a wedding, and it is good to start stashing away money now.