Welcome! If this is your first time visiting, check out the story behind this blog. So you won't miss out on future updates, you may want to subscribe to my RSS feed. If you prefer a weekly email, try this option. Thanks for visiting and please come again!
Holding my son for the first time
I thought this post was fitting since a pretty close friend of mine just recently found that they are having their first child. You can never prepare for being a first time parent. Diapers, baby crib, strollers…..it can be overwhelming. Here’s another guest post of Joe Plemon of Plemon Financial Coaching offering some basic tips on preparing financially for your first child. And yes, that is my little buddy up top. Go ahead. You know you want to…..Ahhhhh. Now to the post.
Q: We are going to have our first baby in a few months. What things should we be thinking about that will help us be wise with our finances?
A: The following ideas should help:
Have a budget
I realize that everyone needs a budget, but if you don’t have one in place, now is the time to get it working. The good news is that babies don’t cost as much as society tells you. The not so good news is that, as money grows tighter with a little one in the house, not having a written cash flow plan in place can get you in trouble. Turn the TV off and plan an evening with your spouse to prepare a budget. You will be glad that you controlled your life instead of letting it control you. Here’s a good budget read at Free From Broke.
Have proper life and disability insurance in place.
Ask yourself this question: “If something happens to my spouse or me, how will the remaining spouse be able to care for our child and continue to pay the bills?” You probably spend more eating out in a month than life insurance and disability insurance premiums would cost, so you absolutely can’t afford to not have them. Here’s some other personal finance essentials from Patrick @ Cash Money Life.
Make retirement investing a higher priority than college savings.
You may be tempted to start a college fund right away, but don’t sacrifice your retirement investments. Junior has lots of options to cover college expenses, such as scholarships, work and attending community college and state universities. What alternatives to retirement do you have? Think Your Way To Wealth has the basics on 529 Plans and ESA’s.
Make a will.
If both of you die without a will, the courts will decide who cares for your child. Is this what you want? Make a will so you can name the guardian that you want. Not having a will is just plain irresponsible. Do it today.
Securities offered through LPL Financial, Member FINRA, SIPC
{ 1 trackback }
{ 2 comments… read them below or add one }
Great list! You definitely have to re-think your spending with a little one on the way. It’s way too easy to get caught up in buying the newest cute thing. You have to reign in your spending habits.
FFB’s last blog post..Are Your New Year’s Resolutions SMART?
Great advice! Most people are concerned with the first baby because it can be an overwhelming experience to be a new parent, finances notwithstanding (inadequate finances only makes it more overwhelming).
BUT, the true meaning of fear comes with numbers 2, 3, 4, etc.! It doesn’t really hit you financially until the 2nd child (my experience). My wife and I both worked while Liam was an infant. But with Rowan, it was “better” for her to stay home with him. However, once it’s time for him to go to school, financial ruin is upon us!
Daycare/school is EXPENSIVE. Multiply by the number of children you have and you see how quickly one income vanishes (for us, it’s 1.5 hehe).
And, …..Ahhhhh
Bill’s last blog post..Dilbert on the Economy