According to financial experts, your family spending should be discussed with your husband or wife. At the same time to prepare for the best preparation for birth. Or at the latest when your Family welcomes new members.
1. Make a monthly expenses budget for your family
Many people thought that this sounded like a “big hammer” at first sight that made many people afraid. However, financial budgeting is simply learning how to spend the most money possible for your family. You don’t have to use a computer or a program like excel to do this. In fact, what you need is only time and simple insights and a little time. Huggies will give you tips to help you create good consumption habits, master your own spending plan.
2. Make a budget in new circumstances
When your baby is born, family spending will inevitably change a lot. Therefore, budgeting for spending in this new journey is extremely necessary. This is also the first step you should set out on a spending plan when you have a baby and stick to it according to a clearly established plan.
The monthly expenses budget spent with children can be broken down into:
First year Newborn Baby budget: According to financial experts, you can estimate how much your baby’s first year of life will be spent raising children. In this budget you can divide into recurring (mandatory) expenses such as diapers, milk, toys for babies, immunizations … and non-recurring expenses, just spending or “investing” once like Baby carriers, strollers, walkers, … Besides, there should be a backup or emergency to use for unexpected conditions such as sick babies.
Budget for baby spending from Year 2 onwards: From Year 2 onwards, a child’s budget can also be based on the first year budget framework. However, as your baby gets older and especially when your maternity leave is over, you may have plans to send your baby back to work. So, in your budget from this time period onwards, please add the cost of your child to kindergarten, school, … and estimate the related costs in this section.
3. Have a financial plan for your child to go to school
The saving plan for your child’s education at all levels is even when their children go to college, perhaps with many families … far away. Although it is not an immediate priority, but if possible, you should also start implementing this plan from now on, for periods such as elementary, high school, and university. You may not believe it, but for those with experience, preparing / saving money for your child to go to school starts from the moment your child is born – never early.
4. Archive of monthly expenses
Budgeting and spending is only really effective when the numbers in it accurately reflect your revenue and expenditure. Do not estimate that bills will be due within 12 months, but take a specific amount paid for each month in the past.
Gather and keep all kinds of bills, combine them with your notebook to make a list of actual monthly expenses. Record minimum repayments for loans and credit cards. For quarterly or yearly expenses, you should break them down by averaging monthly for easy tracking. In addition, you should also avoid missing other expenses such as insurance premiums, medical expenses, monthly car expenses, haircut.
5. Save on the budget every month
No matter how much your family is spending in a new condition (with a baby), you should definitely have a savings item. Accumulating wind into storms, small amounts of advice is never redundant for us even in spending in particular, in general financial problems. Savings according to your family’s ability and reality.
6. Check your income tax so that you can supplement your child’s exemption
Most countries have personal income taxes and are accompanied by an exemption when you have children or have additional responsibilities for a loved one. When you have children, you should check your spouse’s income level and the exemption to add the exemption if necessary. This is also essential for you to save your tax-free amount as soon as possible.
7. Take a deep breath!
Now subtract the total cost from your gross income. If the result is a positive number, congratulations on saving some money for the future. However, if the opposite results mean you’re spending more than you are earning, then it is time to seriously work on rebalancing your family budget.
8. Don’t be too strict!
Don’t rush to start making a family budget because it takes time to get used to balancing and adjusting them. If this week hasn’t been successful, continue next week. Remember to use a manual regularly to review your expenses. Be patient and you will definitely become a wise consumer and manage your family budget a lot better.
According to financial experts, when you have children, monthly expenses, the more good financial plan you have, the more time you will have to take good care of your children.