How to Financially Prepare for a Baby: Your Step-by-Step Guide
Financially planning for any situation is a lot more difficult than some would imagine. Not only does it require tons of self-discipline, but it also requires no other surprises along the way that’ll force you to tap into your savings. Planning and preparing for a new addition to your family is even more important and challenging.
It’s understandable for someone to become stressed and overwhelmed when financially preparing for a baby. When you know all the best tips and tricks, though, you can prepare for a baby like a professional! Where do you start?
Taking the first step in financial preparation is all you can do at the moment, and it starts right here. In the guide below, you’ll find several tips on how to financially prepare for a baby.
Continue reading below to get started.
Begin Repairing Your Credit
If you have less-than-ideal credit, then saving and financially preparing for a baby can be quite difficult. One of the first things you want to do is pay off your debt and build back your credit. To repair your credit, you’ll need to start making payments towards your debts.
This is realistic for someone who’s in small debt with only one or two companies. For someone who has larger debt, how can they pay off their debt before the baby arrives?
The best credit repair companies can help you repair your credit score, clear some of that debt, and set you on the right track.
Start Preparations Early
Nine months might seem like a long time, but when it’s only nine months before a baby’s born, the time flies by. Don’t look at it as if you have plenty of time. Look at it as if it’s a time clock counting down because it is.
You need to start preparing as early as possible to ensure you reach your goals and manage your stress. From the minute you find out the wonderful news, you need to being planning. There are a few first steps you can take immediately.
Get Your Health Insurance Sorted Out
Health insurance is one of those first things to get sorted out. Let your insurance company know that you’re expecting a little one. They’ll then be able to add your pregnancy to your plan.
Some insurance companies cover the majority of pregnancy appointments, exams, and more. Others might not. It’s best to speak with your insurance company to learn what they will and won’t cover.
If needed, make a switch to an insurance company or plan better suited for your needs. You’ll also want to ask about placing the new baby on your plan as well.
Plan for Your Maternity Leave
Maternity leave is sometimes paid for by employers. Other employers will only cover a portion of the leave or pay you a portion of your income, while others won’t cover any of it. Talk to your employer about your maternity leave benefits so you can plan accordingly.
In the meantime, as long as your health is good and your doctor approves, take on more hours at work while you can. You’ll want to use up all six weeks of your maternity leave if not more. You don’t want to be stressed about money while spending this time bonding with your baby.
Work more hours now, save your money, and have a maternity fund ready.
Set Money Aside for Daycare
Although daycare might seem far away from this moment, it’ll come before you know it. There’s no shame in beginning to look for daycares before the baby arrives. This gives you time to look into each one carefully to ensure you make the best decision without feeling rushed.
Once you find a daycare you trust, go over pricing with them. Learn how much you’ll need to pay each week for daycare costs. Will the center provide any supplies for you, or will you need to bring in your own?
Start living financially as if your baby was already in daycare. This way, it won’t come as a shock when the time comes to place them in one.
Create an Emergency Fund
Having an emergency fund set aside for any situation is an excellent idea. When a baby’s involved, it’s an even better idea. You should start putting money aside in a savings account to use for your maternity leave and daycare costs, but you should also do your best to put money aside in a separate emergency account.
This money will only be used in case of emergencies. If you or your partner becomes sick and must take days off of work without pay, you can tap into this fun. If an important medical procedure is required for your baby and insurance doesn’t cover the full cost, you’ll have your emergency funds to support you.
Gather Baby Supplies and Essentials
Baby supplies and essentials are expensive; there’s no doubt about it. If you wait until the baby’s here to gather all your supplies, then you might find yourself feeling overwhelmed and sort of cash. A good tip is to plan your baby shower and wait until after you see what you receive in gifts to begin purchasing the essentials.
After your shower, you can then begin buying anything you need but didn’t receive. It’s also a good idea to purchase extra diapers and wipes in sizes you might not have received a lot of.
Don’t Worry, You Can Prepare for a Baby Like a Pro
Bringing new life into this world can be a bit scary at times, but don’t worry. You’re going to do great and with these helpful tips in mind, you can prepare for a baby like a pro! Be sure to follow these tips and start planning early.
Are you ready to fix your credit? Raise your credit score by scheduling a consultation and start your prepping today!