Planning a baby? 10 money tips for YOU

Apart from being physically and psychologically prepared for the new role you must be financially ready as well. Before you plunge into parenthood, the good idea is planning the finances. Here are few points for you to consider:

1. Boost your income

You can try working extra or overtime to earn few extra pennies. Changing job for a better hike can also be one option. However make sure earning extra should not lead to a stressed life for you. Remember, stress is the biggest blocker in conception.

2. Budget your pregnancy

Choose your doctor and hospital as per your budget. You also need to budget your pregnancy expenses like maternity clothes. You should invest in your diet instead and eat healthy.

Courtesy: WelcomeLittle.com

Welcome Little is a programme specially designed for the expecting parents to prepare them for welcoming their little one

3. Eliminate the unnecessary expenses

Change your lifestyle to eliminate unnecessary expenses. Cut down on parties and dining out. Also put a check on your shopping as anyway these clothes would be of hardly any use during pregnancy.

4. Get insurance

Invest on getting a medical and life insurance. Choose a medical insurance with covers pregnancy and delivery expenses.

5. Shop wisely

Start shopping for your baby only in last trimester. Consider the weather conditions at the time of delivery before buying clothes for baby. Sometimes couples tend to buy clothes fitting present weather which become useless once the baby is born. Do not buy too many gears and gadgets for the baby.

There are several things which you would anyway receive as gifts from friends and family. You can choose to buy them later on need basis.

6. Planning finances with one salary

There are chances that the lady has to quit the job or has to take sabbatical leave during pregnancy or after the baby. Your finances have to be in line with the fact that the household expenses have to be run on one salary.

7. Maintain contingency funds

Your emergency fund should cover at least three months' worth of living expenses. Also there must be funds for emergency medical situation like pre-term baby for incubation, baby or mother health issues, long duration hospitalisation during pregnancy.

8. Celebration budget

Indian families have culture of celebrating loudly. Keep a safe budget to host a celebration of your baby arrival. Some cultures also celebrate baby shower (Godbharai) with great pomp and show.

9. Ongoing expenses budget

Diapers, nappies, wipes, clothes, formula milk, baby powder, shampoo, soap... the list is endless and the costs for these 'consumables' really add up. Keep these expenses in mind too when budgeting.

10. Child-care

If you plan to join back work and have no one to take care of the baby at home, look for a good baby-care centre suiting your budget. Child care is a huge expense to consider.

Research your options: Day-care, full-time maid, creche, nanny.