One of the toughest challenges for new parents is how to manage the new expenses for your child. If you are planning to have a family, do not panic.
Here are 6 ways to manage finances before having children reported by Money, Sunday (23/08/2015):
1. Make a list of income and expenses
A list of all assets, including bank accounts, investments, and property. Then make a list of your obligation, such as credit card debt, car loans, home, and others. That way, you have a starting point to create a new financial plan.
2. Develop a plan about debt repayment
With the baby, it is very important to conduct a serious step in paying the debt. The main one, remove the debt with the greatest interest, usually credit card. It is going to spend a lot of money in the beginning, but it will not be a burden in the future.
3. Create an emergency fund
This funding is essential wherever your position in life, even more important when becoming a parent. The amount is, conventionally, about two to three months of your expenses. Compute and find out how, how long it takes to get that amount.
4. Create a budget for babies
The budget is not something written in stone, but should change as you age. Start looking figure how much it costs to have a baby, from the price of diapers, clothes, food, education, until the caregiver.
5. Create a budget baby equipment
A baby requires equipment that is not endless endless. The price is expensive. Stroller, car seat, diaper bag, a dining chair, a bottle of milk, a wardrobe, a bed, only some purposes that you need to buy if you have a baby.
6. Ask information to the human resources (HR) office
If you consider having more than one child in the adjacent, discuss this with the HR office. Ask about the leave is longer.
Then, ask also how to position your work later on, who is to replace your position when on leave, could work part-time, and others.