When couples begin thinking about expanding their family finances are usually the first thing that comes to mind. If you’re one of the many that has a baby on the way and your finances aren’t quite figured out, we have a few tips and tricks to make the transition a little easier for you. Take a look below and see some of the best ways to prepare for a baby while you’re still in debt.
Reduce and Save
A great way to get on the road towards financial freedom and save yourself some money for all those baby expenses that are quickly approaching is to reduce, or even eliminate altogether, as many bills as possible. Negotiating, or even cutting out completely, your cable bill is a great place to start. Other great options are cutting down your cell phone bill and finding a bank that doesn’t charge an arm and a leg in extra fees. If you really want to make a big change then you may even consider downsizing your home. By making a couple of one-time changes you could find yourself with a few hundred dollars every month that you didn’t have before.
Expand or Create a Savings
Even though the amount of debt you have may seem insurmountable, you still need to work on a safety cushion. Babies are expensive and though it might mean taking a little longer to get that debt paid down, it’s important that you have some extra money set aside for when the little one arrives. The easiest way to save this extra money is to set up an automatic draft with your bank to send the money that you’re saving directly into a savings account. It’ll be easier to let go of that money since it’s been going towards bills anyway. With that consistent progress you’ll have a safety cushion built up before you know it, and when those unexpected baby expenses pop up you’ll be much more prepared.
Time for a Practice Test
A great way to make sure you don’t push yourself farther into debt once baby arrives is by giving yourself a little practice test. Before the new arrival, calculate how much you expect to spend monthly on the little one and put that amount into a savings account. This will let you see if you’re going to be able to afford the baby as things are, or if you need to cut out another bill or two. It will also help to build up that savings account and safety cushion.
As most parents quickly realize. There’s no “perfect time” to expand your family. If you wait for that time then you’ll be waiting forever. Instead, start making the appropriate changes now so that when baby arrives you’re better off than you were beforehand.
If you find yourself struggling with debt or would like to find out about becoming debt free, call Debthelper.com at 800-920-2262, or schedule a free counseling session today.