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Having a baby is such an exciting moment in your life. However, if you are not financially prepared it can become a burden. It’s important to take time to become financially secure before you have your first baby.
Save Up
With a new baby, according to The Bump, you are adding another person to your family and a whole new set of expenses. Not only will you have to account for the regular expenses like food and diapers, but you will also need to spend a lot to prepare. This includes getting a crib, stroller, and carrier. While you might be able to handle some expenses with your regular income, it’s smart to start saving up. You can begin building your savings specifically for your baby, but you should also consider having an emergency fund or other types of saving funds. You want to make sure you’ll have plenty of money to take care of all your needs or possible expenses besides your new baby.
Get Insurance
There are many types of insurance you could benefit from. Of course, health insurance will be key throughout your life but especially while having your baby. In addition, you should consider getting life insurance. Life insurance exists as a measure to protect your family should something happen to you. While that is unlikely at a young age, now is the best time to get it. According to Compass Insurance Group, a term life insurance policy is cheaper the younger you are. So, while you might not use it any time soon, it will be less expensive now which will benefit you in the long run.
Decrease Debt
If you have any debts, these will continue to eat at your finances. As mentioned, having a baby will introduce a lot of new expenses and this will drastically change your budget. Before you have your baby, according to the Ontario Securities Commision, you should try to reduce your debt as much as possible. To start off, you should be at least paying the minimum on your debts every month and try to pay more if you can afford it. Another way to reduce your debt is to stop adding to it. Avoid using credit cards unless absolutely necessary. They only have the potential to add more to your debt. You can also free up more money to pay off debts if you reconfigure your budget.
Start now to make yourself more financially secure before you move on to the next step in your life. Having a baby will bring you lots of joy. Just make sure you take care of the finances so you can enjoy having your new baby even more.
Read this next: How A Healthy Lifestyle Can Save Your Family Money
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