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Financial Tips for New Parents
You’ve set up the nursery, folded tiny socks and onesies, and stocked up the diaper changing station. Now, as you prepare to bring home your new baby, there are a few things you need to consider when it comes to your finances. Here, Leila Justice a.k.a GratitudeQueen gives you a few tips to put your growing family on a strong financial footing:
Start Your Own Business – Consider Refinancing
If you’re not going back to your regular job after giving birth or adopting, starting a side gig from home is a good way to make some extra cash while spending time with your little one. And if you want peace of mind, consider forming a LLC to keep your personal assets separate from your business in order to protect yourself and your loved ones from liability. When you need a few hours of uninterrupted work, or if you have to meet clients outside your home, The Work at Home Woman suggests hiring an in-home nanny or babysitter part-time, or asking your support network to pitch in.
If you’re in need of startup funds for your venture, especially if you plan to work full-time at your own business, there are a number of resources available. Some entrepreneurs choose to refinance their home to drum up extra cash and put it toward all it takes to launch. Low interest rates make this a very viable option, compared with getting a small business loan. Refinancing can also lower your monthly mortgage payment and pay off the mortgage even sooner.
Update Your Health Insurance.
Once you bring your new baby home, you only have a short window of time to enroll them into your health insurance plan, usually about 30 days. If you neglect to do so, your baby may not be eligible for coverage. Start by contacting your insurance company and letting them know about your new family situation, then discuss plan options and see which one is the best and most
affordable for your family. Your health insurance company will require access to your baby’s birth records, and they may also need a copy of his or her birth certificate, so make sure you have all necessary documents at the ready.
Set Up Automatic Bill Payment
Bringing a newborn home is both exhilarating and exhausting. Sleep deprivation will likely cause you to forget some important stuff, like paying bills on time. So take advantage of automatic bill-paying options for all your recurring expenses. You can easily set up automatic payments with your bank, where money will be deducted directly from your account. Or you can pay bills automatically using your credit card, which presents two main advantage Finder notes that you’ll be able to detect and reverse fraudulent charges without too much hassle, and you can even get cashback as a reward for using your card.
Start an Emergency Savings Fund.
If you haven’t done so already, make sure you open an emergency savings account where you’ll have enough money stashed away to cover expenses for three to six months in case you lose your job, you suddenly need costly medical care, or a catastrophic event prevents you from earning a living. If you already have an emergency fund in place, increase its amount to account for the extra expenses that come with having a baby as part of your household. Setting up
automatic transfers directly from your paycheck into your emergency fund will eliminate the temptation to spend that money on something else.
Keep Saving for Retirement
Experts agree that if you can’t financially do both, prioritizing saving money for your retirement is much wiser than starting a college fund for your newborn. While college-bound kids can get financial help through scholarships, grants, and loans, not putting money aside for your golden years will force you to rely solely on social security benefits, and you may even end up having to get help from your children or other relatives for your everyday expenses. So make sure you plan for your future first, and you won’t have to struggle financially after you retire.
Taking care of your finances while caring for a newborn can be very daunting, especially when you’re sleep-deprived. But you can take advantage of refinancing, insurance, and automatic payment options to help you out. And don’t forget to secure your own financial future when investing your money.