How to Budget and Save Money When Having a Baby and Starting a Family

What baby essentials do you need? Bringing a new baby into the family will have a significant impact on your monthly outgoings. The essential items a new baby will need are clothing- full of five outfits including outdoor wear- nappies, a pushchair, a car safety seat, a crib or cot, and feeding equipment. These expenses can seem overwhelming, but there are ways of preparing for your new life without breaking the bank. Make a baby budget Before you start a family make sure you have a realistic budget that you can stick to. First, work out how much maternity or paternity pay you will get from your employer. If you are part of a couple, make a monthly budget based on the income of a single working person. This will ensure you live well within your means. Then, subtract all your essential monthly outgoings like rent, bills and private medical insurance- you will be left with a final figure that you have to work with. Start saving for your new family Next, do your research. How much money will you need to spend each month on the new addition to the family? Whatever you have left over, start putting into a baby fund. The habit of saving is more important than the amount that is saved, so even if it is just £10 a month you will steadily build up a small nest egg that you can add more to over time, and if you start saving as soon as you find out you are pregnant you will already be well on your way. By having these savings, you have cover for any unexpected expenses that are needed in the future. Consider private medical insurance Having a child can dramatically change your healthcare needs, and many new mums and dads become much more conscious of the level of care offered by the NHS. If you don't have a private medical insurance policy already you may want to compare health insurance quotes to see if you can afford the monthly premiums. It will give you peace of mind that if any member of the family comes ill they will receive the best treatment the UK has to offer, and it does not cost much to add a child to a policy. Bargain hunt for your new baby One great way to watch your costs is to look for a bargain when it comes to baby equipment. It goes without saying that safety should be your number one priority when buying items for your baby, but if you can buy second hand equipment like a car seat or a buggy from relatives, friends, jumble sales or eBay you will save yourself a nice little sum. Babies grow out of things so quickly it is pointless paying full price for items you can get for less. If you don't like the idea of buying new then buy budget brands and shop around for sale items. Large supermarkets like Asda and Tesco sell affordable baby clothes that are also stylish, and IKEA is a cheap place for baby furniture. By following these tips and making a budget and sticking to it, you will have plenty of time to prepare for a new member of your family. Then it's just 18 years to go before your monthly outgoings start to decrease again (But we won't talk about that part!).