Budgeting with Baby
Author: Jeannie Fleming-Gifford
Money. It makes things possible. Sometimes, it makes things seem impossible. Other times, it just stresses us out. With a baby in the household, you may be feeling like there is less of it these days. With diapers, possibly formula, and childcare, as well as all the "necessary" accessories, it's no wonder you are feeling like your wallet has taken a hit.
This isn't the time to cease contributions to your 401K or cut out that annual vacation that rejuvenates your soul. However, you may see that change is necessary.
What can you do? Is there anything you can do? Yes and yes.
Parenthood is the best reason in the world to take control of your life, make some changes, and make things happen.
Where to start?
- Start with the nuts and bolts of what you are earning and spending. It may have been a while since you've taken a good hard look at your monthly budget. If some time has passed, your spending patterns may have changed. Note every expense you can. Don't forget to build in a line for miscellaneous items such as birthday gifts, eating out, or even your daily java.
- Now that you have everything on paper (or computer), it's time to sort things out. What is a necessity (food, water, shelter, and core care items)? What are things you like, but really don't need? When you figure out what those things are, it's time to start making some choices. Small changes make a big difference. For example, eat out once a week or once a month. Pack your lunch. Make your own coffee. Venture into a resale shop for clothing (especially for your munchkin - when they are little they don't care and they'll outgrow it within a few months anyway).
Still not identifying the funds you want or need?
- Shop differently. It's worth taking the time to make a list before you head out to the grocery store. Stick to the list. Say "no" to the extras. Bake from scratch vs. box (okay, depending on your time and the sales this one can be negotiable). Also, remember the thing your child needs most is to grow up healthy and happy in a safe, loving, and caring environment. They don't need more stuff.
- Evaluate both you and your significant other's work situations. Is childcare costing you more than you are earning? If so, evaluate other options (different working hours so care can be provided by your significant other, a different employer, or even ceasing working all together). Be sure to do your research before making any drastic changes.
- Consider part-time. Many families avoid the costs of childcare by one member of the family working part-time while the other cares for the child. A few evenings and/or a weekend day will bring in some grocery money. Also, think about at-home careers (sales, design, writing). Technology has changed the way many employers allow employees to work. Explore your options thoroughly. This may take time. Baby steps.
- Vacation differently. Don't give up the things you love most. If the trip away each year is good for you and your well being, don't say bye-bye just because of your budget. Look for great savings by going different times of the year or to a new place (I've found that our state park system provides nearly everything a major resort does, but at a fraction of the cost).
After you've tackled some of the above, give it a month. Just like anything else, it will take some time to see what is working and what is not.
Happy budgeting (is there such a thing?!)!
