Becoming a new mom is a joyous experience, but it can also be stressful when paired with new financial burdens. With the average cost of raising a child until age 18 being around $233,610, according to the USDA, it’s no surprise that many first-time moms experience anxiety about managing their finances.
There are ways to ease the financial pressures of motherhood, but it requires patience and planning. Here are some tips to help new moms successfully manage their finances while adjusting to life with their new bundle of joy.
Evaluate and adjust your budget
The first step for any new mom is to evaluate their budget to determine the expenses and income coming in. When creating your budget, make sure to include everything you will need, including diapers, formula, and other baby-related items. If possible, try to create a new budget that accounts for any extra costs related to the baby.
As your baby grows and new needs arise, you will need to adjust your budget accordingly. Remember to prioritize necessities, such as food and shelter, and try to cut back on non-essential items.
Be smart about your baby-related expenses
It can be tempting to buy everything new for your baby. However, this can be costly, and many items are only necessary for a short period of time. Consider buying second-hand items, such as clothes, toys, and furniture, as these items are often just as good as new.
Another way to save money is to breastfeed instead of buying formula. Not only is breastfeeding a natural and healthy option, but it can save you thousands of dollars in formula costs over time.
Lastly, remember that baby-related expenses add up quickly, so it’s important to only buy what you need and avoid splurging on non-essential items.
Create an emergency fund
Unexpected expenses are an inevitable part of life, and this is especially true when raising a child. Creating an emergency fund can help to alleviate some of the stress that comes with these costs.
Start by saving a small amount each month, and gradually build up your emergency fund over time. Set a specific amount that you want to save, such as three to six months’ worth of living expenses, and make sure the fund is easily accessible in case of an emergency.
Use credit cards responsibly
Credit cards can be a helpful tool for new moms, but they can also be dangerous if not used responsibly. Always pay your credit card bills on time, and avoid using your credit card for non-essential purchases.
Using your credit card responsibly can help build your credit score, which can be helpful for future loans, such as a mortgage. However, be careful not to overspend and always keep track of your expenses.
Consider a side hustle
If you’re struggling to make ends meet, consider taking on a side hustle to bring in some extra income. There are many options out there, from freelance writing to selling items online.
With many side hustles, you can work from home and schedule your hours around your baby’s needs. Remember to prioritize your baby’s needs and avoid overworking yourself.
Conclusion
Becoming a new mom can be overwhelming, but with careful planning, it’s possible to manage your finances while also enjoying this special time. Remember to evaluate and adjust your budget, be smart about your baby-related expenses, create an emergency fund, use credit cards responsibly, and consider a side hustle if needed.
It’s also important to remember that it’s okay to seek help if you’re struggling financially. There are many resources available, such as government assistance programs and non-profit organizations, that are designed to help new moms get through tough times. By taking a proactive and responsible approach to your finances, you can ensure a bright future for both you and your growing family.