Budgeting Tips for Parents
Having a baby is one of the most beautiful feelings in the world and also a life changing event. The birth of a baby can change your life drastically and similar is the effect on your finances. With the birth of a baby the financial picture that you once painted need to be repainted and in such time it is more important than ever to have an accurate budget made and for it be followed religiously.
A new baby means a new budget. But that doesn’t mean you should throw the old one away. You can keep the old budget as well as the new one and use your earlier budget as the starting point for your new budget. Here is a list of few tips that new parents should take into consideration when they are budgeting for the birth of their baby.
Always have an Emergency Support Fund
When it comes to financial priorities, the most common ones would be to keep the standard of life going, the rent and utility bills paid and having food on the table to eat. Something that does not feature in this list and yet is vital to feature is an emergency fund. An emergency fund should always be kept to cover expenses that may arise out of the blue. This is especially important when you have a child since there are many uncertain expenses that tend to come with a child.
Budget for three lives
This is certainly the most obvious and most important aspect of budgeting. When you are budgeting for a new person in the family, you should budget while keeping that person in mind as an adult person and not a baby. This is going to aid you in more ways than one. This way you won’t have to revise the budget every year and you’ll also have extra expenses for certain time periods that will help you save money.
Your Budget shouldn’t just be about numbers
While the core calculations of budgeting are regarding numbers. It is important for you to realize that when it comes to budgets, they are intended to make your life easy and your financial future brighter. Keeping in line with that belief, when you are making budgets incorporating the new life that has just come into your life, you should set targets that are less about the limits or caps, and more about the ability to achieve in a certain period of time.
These 3 tips will help to make sure the new parents are prepared and ready to care for their ward financially as well as physically.
A Selection of Quotes
“No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.” ~ Suze Orman
“True generosity is an offering; given freely and out of pure love. No strings attached. No expectations. Time and love are the most valuable possession you can share.” ~ Suze Orman
“The only way you will ever permanently take control of your financial life is to dig deep and fix the root problem.” ~ Suze Orman