How to Prepare Financially for a Baby

Having a baby is a joyous and fulfilling thing, yet it also comes with great responsibility and planning. In order to provide for your child and avoid costly mistakes, start planning now!

Instructions

1. Put your priorities in order. Take a look at your cost of living, healthcare and day-to-day expenses. Reduce or completely omit the things you don't really need, such as dining out, "extra" shopping and movie rentals.

2. Incoming and Outgoing. Set a budget by examining how much money is coming in (minus healthcare or any other deductions from your paycheck). Then cosider all bills; mortgage, car payment, car insurance and all utilities.

3. All covered. When preparing for a baby, it's best to increase your health insurance BEFORE getting pregnant. The cost of having (and caring for) a baby is substantial and you do not want to start out in debt.

4. Let working work for you. Most employers offer maternity leave; find out if yours offers paid or unpaid. If your employer does not offer paid leave, you need to start saving immediately to cover the weeks you will miss from work.

5. Don't Over do it. Many expecting parents rush out and buy the best ('best' meaning most expensive) items money can buy. Hold off on the DiaperGenies and expensive onesies until your baby shower.