Growing your family is an exciting prospect. It’s something you need to be prepared for not only emotionally, but also financially. Many people want to wait until they have a good savings before starting a family, this can be difficult. There are ways that even people who don’t feel financially ready can start preparing for a new addition.
Five Tips on Preparing your Family Finances for a New Addition
Knowing where your money is going is the first step toward being financially ready to grow your family. Plan where you want your money to go, including the amount you want to save. Deduct this savings from your checking account at the beginning of each pay period to make sure you don’t accidentally spend it. If you see you are spending a lot of money on things that are not necessary, rework your budget so you can start saving more.
Pay off Debt
Financial stability comes in two ways: not owing money and having money in savings. Set a reasonable emergency fund for yourself, then tackle your debt. Children are expensive, and the more you can pay off before having kids, the better off your whole family will be. Make short term sacrifices while paying off your debt to be able to reach your debt free status as fast as possible. Paying off debt is an important step to starting a savings because it’s not worth it to put money into savings if you are racking up even greater amounts of interest on previous debts.
Ask for Help if you Need It
Debt is very common these days, and it can be overwhelming. If you are concerned about the amount of debt you have, have difficulty paying all of your bills monthly or just need some advice about how to handle your debt, you can always get a professional opinion. If you are looking at a loan as an option of financing you new addition, you’ll need to make sure you have good credit as well. If you don’t, you still have option. Even if you are short on time you can get up to 30% of your negative items removed from you credit in just a few months according to a representative from Lexington Law credit repair services.
Check out Grants and Employee Matches for Adoption
Adoption is expensive, yet there are many children that are waiting for their forever family. Research financial aid options to assist your family in the process. Many employers have an adoption grant, so ask your Human Resources advisor if your company has this perk. Research adoption tax credits, the information changes often but a tax accountant will be able to assist you in finding up to date information. Finally, look in the state system for available children. Adopting from the state is less expensive than an international or private adoption.
Double Check your Insurance Coverage
Infertility is difficult enough on its own without having to deal with the financial side. Contact your insurance agent to find out if any kind of infertility treatment is covered by your insurance. If your plan does not offer this, ask if there is any way to add it, by changing coverage or adding an additional policy. Trying to conceive can be a stressful time in any couples life and racking up a high number of medical bills only adds to that.
If you feel that it is the right time to add an addition to your family, there are ways you can prepare. Even couples who feel they aren’t in a financial position for children have options. Getting ready for a baby can be both an exciting and stressful time, but if you use these tips to plan ahead, you can limit the stress and focus on the joy of you new addition.