How to financially prepare for a baby.
Do you have a little one on the way but don’t feel financially ready just yet? Well, here’s the news: You’re never truly ready for a baby. However, you can take some steps to be as financially prepared as possible. Here are some strategies to consider.
Discuss Big Picture
One of the first things you can do when preparing for a baby is to sit down and have a conversation about the big picture. Here’s some ideas to get you thinking:
- Where would you like them to go to daycare?
- Public or private school?
- What about college?
Consider the long-term to help create a guideline for your budget.
Revise Your Budget
Now that you’ve discussed the big picture, keep in mind a baby will impact your current budget. No amount of planning can capture what expenses might pop up. However, you should review your budget and do the best you can. One big section you need to add is for the hospital stay and essential baby items, like diapers and wipes.
Boost Your Fund
Try to build your emergency fund as big as possible before the baby arrives. Make savings a priority so that when the baby is born, you don’t have to fret too much should an unexpected expense happen.
Do One Thing: Revise your budget before the baby is born so that you are as prepared as possible.
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