If you have recently extended your family then you need to consider how this is going to affect your finances. Some couples are able to plan well ahead of their new arrival to ensure that they are financially secure and capable of having children. It is best that you start planning your family finances as soon as possible and there are some tips that you should consider.
Know Your New Expenses
When you have children there are expenses that you need to take into account. You have to think about the short term and as well as the long terms expenses that you are going to face. However, it is recommended that you start with the expenses that you will face first such as diapers, bottles, clothing, doctor visits and other equipment such as cots, car seats and safety locks.
One of the points that you need to consider is the cost of vaccinations. During the first 2 years of life, there are a number of vaccinations that need to be carried out and most health insurance plans will cover this. However, you will need to check this as there are some insurance policies that will not. If your insurance does not cover this then you need to ask your pediatrician about the other options available.
Grow Your Emergency Fund
Your emergency fund is something that you need to have and it is best that you set aside money each month to increase this. While there are certain expenses that you will be able to budget for, there are others that will sneak up on you. Many money experts recommend that you have 6 to 9 months of living expenses covered by your emergency fund.
To increase your emergency fund you will have to carefully look at your budget and determine what you can put away each month. There could be months where you are not able to put very much into your fund, but there will be other months when you can put more.
Keep Track Of Spending
When you are getting your home ready for your new arrival you may go overboard with your spending. It is important that you keep track of what you are spending and that your budget for everything that you need. One of the best ways to ensure that you do not overspend is to look at what you need to budget a set amount for each.
The baby swing that your baby needs does not have to have an iPod dock and the one without will generally be cheaper. Considering what the necessities are and not including frivolous features will help you keep your spending in check.
Create A Yearly Budget
Most costs that you face will make themselves known well in advance. This is why you need to look at creating a yearly budget so that you know what you are going to spend and what you are going to save. This will also give you the opportunity to determine when you should be putting more into your emergency fund and into the accounts for long-term expenses.