Image via Unsplash
How New Parents Can Get Their Financials in Order to Prepare for a Growing Family
Congratulations on your new bundle of joy! It is a great experience bringing a new child into the home but it can also be a costly endeavor if you are not ready. To make life easier, you should start planning the financial details as soon as you learn that you are pregnant and we would like to help. Here at Financial Freedom Joy, we love to see our community succeed, so we have some tips for how to make money and manage the costs of a new baby.
Smart Decisions If You Need to Buy a House
If you are currently living in an apartment or you otherwise need more room for your growing family then it may be time to buy a house. Take the time to research the neighborhoods that interest you and consider obtaining the services of a real estate agent who can give you the best advice.
One of the major financial factors you will need to decide is how you will approach the down payment. You need to start saving as soon as possible so you can try to save enough to pay this lump sum. The Truth About Mortgage points out that the down payment is essentially to show the lender that you are trustworthy and it also helps so you can take out a smaller loan. The minimum down payment will depend on the type of loan. If you get an FHA loan then you will likely need only 3.5%, but if you can give up to 20%, then you will be in a good place.
Start Building Your Emergency Savings Fund
You never know when an unexpected financial emergency may come around, which can include anything from an actual natural emergency to a broken down car that you need to replace immediately, so you will need to start thinking about how you can start putting money away so you aren’t blind-sighted.
You can make saving money easy by talking to your job about splitting up your pay so that a portion goes directly into a high-interest savings account. This is a great choice because this type of account will give you extra money every month so you will have even more for your fund.
Create a Budget
In order to ensure that you have the money that you need every month, Verywell Family notes that it is important that you create a budget. Take the time to sit down and account for all of the money you have coming in and every expense that you spend money on, everything from groceries to your favorite streaming service.
Then, Baby’s Journey points out that you need to think about the costs that you will soon have to face with a new child, including the price of diapers, baby food, and the furniture they will need. If you are short at the end of the month then you will want to make a change and think about how you can bring in extra cash.
Consider Starting a New Business
If you think that you might be short on funds then you might consider starting a new business. The idea may seem daunting at first, especially if you don’t believe that you have the start-up costs, but you can make things easier by starting a limited liability corporation. An LLC can save you time because of the reduced paperwork and there are great tax advantages so you can save money at the end of the year. It’s wise to use a formation service to start an LLC so you can ensure that your operation does not face legal issues down the road. First, be sure to compare the various formation companies to find the ideal fit; you can start by Googling “BestLLCServices.com – is LegalZoom worth it” to see the levels of service provided, as well as affordability.
Remember that you don’t have to start a full-fledged business if you are not ready, and instead, you can find a side hustle. There are many jobs that you can do, from working as a freelance writer to driving for a food delivery company. These jobs allow you to have a flexible schedule which you will need with a growing family.
As you can see, there are many ways that you can earn extra money and make your finances work with a new child. Take the time to think things out so you have a plan ready to go.
Image via Unsplash
Financial Freedom & Joy shows you how to create financial freedom, time freedom, and gain peace of mind in your life. Read more informative articles today!