3 Tips To Plan Your Post-Baby Budget

Budgeting after a new baby arrives can be a little complicated, but there are steps you can take that should make things easier on you. We cover our best post-baby budgeting tips below.

1. Put a Set Amount From Each Paycheck Toward Any Outstanding Loans

It could be that you decided to take out a loan if you knew that a new baby would be arriving soon. Maybe you needed the money to get essentials such as baby formula, a cradle, a highchair, a baby monitor, or diapers. If so, a loan payoff calculator is a tool that you’ll likely find beneficial.

your outstanding loan. The date you will pay back the loan will come faster if you put more 

Loan payoff date calculators allow you to pinpoint a particular date when you will have paid off money toward it sooner. These calculators are useful because you’ll know when you’ll have more money freed up that you can put toward other things your child needs. 

2. Try to Create a Rainy-Day Fund

With a baby coming, you can plan meticulously and attempt to avoid any unnecessary expenditures. You can probably figure out how much certain expenses will cost, such as what a pediatrician who’s in your insurance network will charge for office visits and vaccinations.

However, there are also going to be baby-related expenses that you didn’t expect. That’s almost inevitable. Kids are frequently accident-prone, and if you can have some money set aside for emergencies, it will benefit your growing family. 

If you can gather together a “rainy day” fund on which you can rely once the baby is in your life, you’ll probably put it to use at some point. If that fund can consist of at least three to six months of living expenses, you should be in good shape.     

3. Use a Spreadsheet to Make Sure You’re Not Neglecting Any Financial Necessities 

Creating a spreadsheet with all your expenses on it is a smart thing to do wherever you’re at in life but especially when you’re about to have another mouth to feed. 

Start by putting how much you’re making at the top of the spreadsheet. If you’re making a set amount each week or month, that makes budgeting easier. If you work at a job where your salary is a little more unpredictable, you’ll just have to estimate your average income.

Next, list your expenses. In addition to all the traditional elements of a monthly family budget such as your mortgage or rent, utility costs, food, health insurance payments, etc., add each and every recurring baby-related expense as well as categories for one-time purchases.

Seeing in black and white what you’re making and spending is a great way for you to envision what you’ll be able to afford once the baby comes. Checking the spreadsheet often is also a reliable way to avoid forgetting about any bills that need paying.

Money Won’t Be Tight Forever

If you feel strapped for cash post-baby, remember that this isn’t forever. The baby stage is one of the most expensive, but it doesn’t last for long. Additionally, many parents are able to increase their earning power as they progress further in their careers. Eventually, you should reach a point when you do not have to budget so carefully.