Home -> Parent Info -> Everyday Parenting Tips Knowing you've got a baby on the way can be both exciting and stressful. You're starting a family of your own - but can your finances handle the pressure of an 'extra mouth to feed'? After all, The Irish Times estimated last year that the total cost of raising a child in Ireland is around €250,000. Do you have a monthly budget already? If so, you'll probably just need to update it and make sure you're prepared to change it further when your baby is born. If you've not got a budget, follow these five simple steps:
Budgeting for my new family
Budgeting for your new family can really encourage you to 'tidy up' your finances before the arrival of your baby, ensuring you're in the best possible financial position to provide the best possible upbringing for your child.
So what could you do to budget for your new family?
Well, the list is practically endless, but we're going to take a look at a couple of areas now to help you get started.
Budgeting
First and foremost, we're going to take a look at budgeting.
- Write down everything you earn/receive in one month.
- Write down everything you have to spend in one month (just your essential costs - such as mortgage/rent payments, household bills and food).
- Once you have these totals, subtract your expenditure from your income - leaving you with what's called your 'disposable income'.
- Your disposable income will be used to service any unsecured debts you're carrying (things like credit cards and unsecured loans). Any money left after doing this (so if you haven't got any unsecured debts, your entire disposable income) can be used for savings and/or non-essential purchases.
- Make sure you regularly check your budget to ensure it is wholly representative of your situation - after all, you can't have a working budget if it's not accurate!
Note: if you are carrying unsecured debts, you'll need to make sure your disposable income is enough to cover your monthly repayments towards them. If it isn't, a debt consolidation solution from Debt Advisory Centre Ireland could be an option. Depending on your situation, you may be able to repay your debts by making single monthly payments you can realistically afford. Making lower monthly payments can affect your credit rating - and potentially cost you more in the long run - but if you can't keep up with your payments as they stand, it could be the best way for you to tackle your debts.
Cutting back
Now you've got a budget, you will be able to see where all your money is coming from, and where all of it is going.
Take a look and see where you're spending your money and have a think if you could make savings anywhere. Perhaps you could save some money on your utility bills by being more careful with your energy usage? Or maybe you could save money by buying budget/non-branded items when you go food shopping?
However you do it, if you can make cut-backs now, it means you'll have more money later, when your baby is born