Baby Budget Boom

February 28, 2008

Above: Baby, also need budgeting

A new baby coming in the family is such a huge blessing as well as such a huge responsibility, emotionally, physically and mentally. This is an exciting mode where in you can see that you are preparing yourself for a great responsibility so you can rise yourself up to the challenge meaning, you are prepared and responsible enough.

• Know you Means

Find your net worth first so know how much you have at hand after which you would have to jot down the totality of your monthly income. This will get you started on how much you can actually spend in a month was the added expenses are occurring.

• List your current Expenses

You have current expenses like water, electric, phone, cable bills. Write this all down, be very specific regarding this list; this will serve as connotation on how much you already are spending at the present being.

• Deduct your Monthly Income with your Monthly Expenses

Subtract your monthly expenses from your monthly income; the outcome of this will serve as your basis on how much you can work with when the baby comes. That’s when the budget starts. This will serve to be your figure of budget.

• List the Expenses that will concur once the baby comes

List everything down, from milk, diapers and so on. You would need to be specific with this list of expenses. If this is your first born, it would be wise to seek advise from those who recently had a baby so that you’ll be ahead on how many packs of diapers you would need to buy in a week, how much milk will be used up in a weeks time, so on and so forth.

• Deduct these Expenses to your budget

Subtract the amount of baby expenses with the actual budget. By doing this you would know if your income is enough, if it isn’t then this will also help you determine on which monthly expenses should you cut-off or decrease since the baby’s expenses come first.

• Analysis

If the budget turns out negative, break even or falls under the bracket, now other steps must be determined while analyzing your budget. This will include other considerations, even if you’re present earning would seem enough for all expenses for the current being, other things should be taken into consideration. These are insurances, college plan, savings etc. It will make you realize that you would need to earn more if in that case.

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Posted by Budget Saver under Financial Planning |