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Step 1
Get familiar with your spending patterns. See 228 Design a Savings Plan and 227 Get Out of Debt, then clean up your financial act before the new arrival.
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Step 2
Ask friends with children what various pieces of baby gear and other necessities cost. See 254 Prepare for a New Baby.
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Step 3
Create a list of your current, prebaby expenses (see 226 Set Up a Budget). Once you learn where your money is going, you'll be able to figure out how much of it you can save and reallocate toward baby expenses. If you need to use fertility services such as a sperm bank or in vitro fertilization, add those costs to the equation. See 252 Plan for Artificial Insemination and 253 Prepare for an In Vitro Fertilization.
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Step 4
Assume that your household expenses will rise after having your baby, and adjust your budget accordingly. Include essentials like diapers, baby food, clothing, doctor visits, prescription drugs and medicine. Initially, set aside about $200 extra for household bills, and adjust that figure upward as you get a better handle on your monthly budget with baby in tow.
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Step 5
Act early to find child care, since many day-care centers have waiting lists. Take the time to do your homework and find the right one for your child and your budget without rushing. See 263 Arrange Quality Child Care.
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Step 6
Make sure your home is energy efficient. Conserve water and energy, replace inefficient furnaces and water heaters, and bolster insulation. These measures will help keep utility bills in check despite the larger household.
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Step 7
Be cost-conscious about baby clothes. Enjoy the largesse of friends and relatives who happily pass on their children's outgrown clothes. Buy used kids' clothes at deep discounts. Check out manufacturer outlets for bargain buys, and shop during sales and inventory markdowns. See 255 Organize Your Maternity Wardrobe.
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Step 8
Start your baby's college fund now. By socking away as little as $50 per month, you can build up a formidable college fund by the time your child reaches 18 years of age. See 235 Plan for College Costs.








Comments
lillybaby123 said
on 6/18/2009 Thanks for the information. It reminds me a movie named million dollar baby.
jeaniecole said
on 2/2/2009 This article refers you to additional information (e.g., See 254 Prepare for a New Baby), however I can't figure out where you find this additional information. Can you please point me in the right direction?
CCrock said
on 11/17/2007 I'm so glad we are planning for our baby's college education. What a wonderful gift, I wish I could have had a college fund!