April 8, 2021
Being a parent is one of the most exciting and beautiful experiences in life. Once the baby comes, everything changes from your lifestyle to bank balance. The beginning years will be very expensive because of daycare, clothes, wipes, diapers, toys, teething rings, and the like. Even though you have well prepared for such expenses, you may face a shortage of money.
Most parents find it hard to keep up with all expenses despite having money stashed away for childcare. There is nothing wrong to take out personal loans in Ireland online when running out of money, but it does not mean that you stop being prudent. Here are some money-saving tips if your baby is about to come.
Save for hospital add-ons.
You must have been setting aside money for the hospital bill, but do not forget that it can be higher than your expectations because of post-delivery services. It depends on the mother’s and baby’s condition that how quickly they discharge them.
Sometimes the baby goes under medical care because of jaundice, for instance. This will naturally add up your medical bill. Consider such unexpected factors while saving money. The more prudent you are, the better it is.
Pay off all debts before the baby arrives.
Your daily spending will undoubtedly increase as you bring your baby home. It can be quite hard to keep up with all of the expenses when you are to save for other planned expenses like car buying, house purchase, and the like, and if you have already taken on debt, it is going to be worse.
A rule of thumb says that you should try to settle all your debts before the baby comes. Whether it is an instalment loan or a credit card debt, make sure that you get rid of them as soon as possible. If you have a debt that will last even after your baby comes, you should pay it before the due date. Of course, you will pay early repayment fees, but it can help you save a lot of money down the line.
Use apps for budgeting
As a parent, you want to give your child all the comfort and that you can buy with money. However, there are many essential things that your baby will need, and you will have to spend money on them. This is why budgeting is crucial. It is not mandatory to use apps for budgeting as long as you are comfortable with a spreadsheet.
If you cannot do it manually, use apps. With the help of an app, you can set a spending limit and saving limit. The best part of these apps is you can categorise your spending and saving. If you cross the spending limit, it will send you a notification to prevent you from overspending. Even though you are strictly using an app, you will likely overspend sometimes.
If it happens, make sure that you recoup that loss next month by cutting down your expenses. As far as it is about saving for baby-related costs, you will have to estimate the amount and then divide it to find out per month saving goal.
Do not buy everything.
You will naturally lose to see your baby wear new clothes and use new toys, but try to be practical. This emotional approach can ding your budget. Babies grow fast: they can grow about an inch every month, which means you will buy new clothes every month.
It does not make sense to spend on new clothes when you can use hand-me-downs. Ask your family and friends if they have recently had a baby and can give you any hand-me-downs. Likewise, you do not have to buy new toys. You can ask your friends and family for them, or you can buy them from a thrift store.
After having a baby, you will likely be in a tight spot because of a sudden surge in expenses, but you have to be calm. Needless to say, you may not have time to drink even coffee. Try to enjoy every moment. In amid of all that, do not forget to take care of your spending.
Since baby expenses are way too much, you will have to cut back on other costs. Make sure that you are not incurring discretionary expenses. For a couple of months, you may have to curb all nonessential expenses. The more rigorous you are with your finances, the sooner you will bounce back.
If you are going to be a parent soon, you will have to immediately take control of your finances. Expenses immediately shoot up after the arrival of the baby. Therefore, make sure that you have set aside enough money to avoid running out of it down the line.