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5 financial must-dos to prepare for a baby in 2020

5 financial must-dos to prepare for a baby in 2020

No matter how “ready” you think you are to start a family, preparing for a baby, especially for the first time can be overwhelming. Yes, these little bundles of joy are a blessing that lit your entire life. But did we forget to mention that they are expensive? Babies are a major life investment.

How much are we talking about here? Well, according to ()

If you’re expecting that extra family member soon, here are effective financial tips to keep you off being anxious about money-related issues in your first years as a family. Here is how to prim your accounts:

  • Start with a work plan:

Babies often live off their parent’s existing and potential earnings because of the recurring expenses that build off as they grow. Before the baby comes, it is best to live off one salary income and consider having multiple streams of income.

  • Create a realistic budget:

Divide your budget into three phases –the pre-birth, delivery, and post-birth delivery. Make a simple budget based on the necessary baby items you need. Do not forget to budget for miscellaneous, based on changes to your income. An additional tip: resist the urge to buy clothes in newborn sizes. They grow so big quickly and outgrown their clothes fast as well. This will save you huge costs. Also, go for quality, not quantity. Who says baby items can’t be recycled for the next child?

  • Open a savings account

Money should be one of your first considerations when preparing for a child. Not only do babies need a lot of stuff diapers, supplements, and nutrition programs, but there are bigger expenses like child care and education. Start saving as soon as possible. Find a way to wiggle away from some cash after every pack. In that manner, you are prepared for additional expenses before and after the baby arrives.

  • Get life insurance.

Getting life insurance is a smart financial decision to make at the early stages of your pregnancy. Invest in securities. It ensures you have a plan to take care of your family in an event of uncertainties. The decision to have a child requires a long- term comprehensive plan. You don’t have to get it all right at first, just start with what you have in your account.

Bottom line: preparing for a baby involves major life-decisions. It is a beautiful and frantic life-changing experience. And not to mention the impact it will have on your wallet. Before you decide on having a baby, take a careful look at your finances, because, for a small sunshine package like theirs, it sure cost a whole lot.

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