How to Financially Prepare for a Baby

Having a baby can be an exciting but scary thought with a lot to get your head around. To financially prepare for a baby, the sooner you can start saving, the better it will be long term. This way, it won’t cause you any stress and it’s one less thing to worry about.

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Here a few tips to help you through the financial worries;

Research maternity leave

The first thing you need to do when you find out you are pregnant, is to look in to your employers maternity leave policy. Every company is different, contact your HR department and ask them to send you the details as soon as possible. The maternity pay is normally made up of both statutory and company pay. Mine was very confusing and I needed to read over it a few times before fully understanding the income I would receive. I also spoke to a few other colleagues who had already received it before.

You can also find out all the information you need for statutory pay on the HMRC website.

Work out your new budget

Once you have worked out what income you will receive on maternity leave, it’s best to work out what your new budget will be. I wrote a post about budgeting if you need help on this.

After you have worked out your new budget, try living to this new income amount now. That was you can get used to the drop in income before the baby arrives and it will be less stressful. You can also save the difference between your current income and the new income you will have. This will boost your savings which will be ideal to have with a new born on the way.

Only buy what you need

It is so easily to get carried away buying bits for a new baby, especially if it’s your first. There are so many different products out there and you could easily think you need them all, but you really don’t. Just stick to the essentials. For the larger items, shop around and look for the best bargains, I found you could spend 100s of pounds on something or find the same thing for a fraction of the price, this moses basket for example is less than £25 but when I was looking for one, I saw so many that cost well over £100. Babies only sleep in there for a few months so it’s not worth the huge price tag.

Buy second hand

Babies may get through a lot of clothes every day with nappy explosions or milk sick everywhere but that doesn’t mean you need to spend a lot of money on these clothes. They grow so fast so before you know they will be growing out of everything, even if you did spend loads on designer clothes! You can buy good quality  second hand baby clothes, babies aren’t wearing them for long so they will be as good as new. The best place to look for this will either be your local Facebook selling sites or look on eBay. You’ll be able to find some good bargains on both of these.

Sign up for baby freebies

All the main supermarkets have their own baby clubs. If you sign up to these they will send you vouchers and goodies. You should also sign up to the brand websites too, Pampers and C&G send out coupons quite regularly. The best site to sign up for I found was Emma’s Diary. You can download vouchers for different packs and these all include lots of vouchers and free sample products which all come in handy.

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