5 Tips for Babyproofing Your Finances

When you become a parent, it isn’t only your sleep schedule that changes. Your financial needs shift, and it’s important to prepare your family’s finances to handle those changes. Use this guide from Angi Carman Photography to help manage your money as a new parent.

1. Write Your Wills

Thinking about your death may be unpleasant, but when you bring a baby home, preparing for the worst is essential, even as you hope for the best. While using a lawyer can help ensure everything is legally binding and adequately worded, you can create your own wills with the help of online toolkits and templates.

Policygenius explains that two kinds of will exist that you need to be concerned with: your last will and testament and your living will. Your last will and testament dictates what happens with your property and children when you pass. Mayo Clinic notes that your living will, sometimes called an advance directive, is designed to honor your wishes while you are still alive but not in a position to manage your own medical care. It can provide guidance on your desires regarding CPR, ventilation, tube feeding, and other medical interventions that impact not only your life but your family’s lives, as well.

2. Saving for Life’s Many Changes

One of the most important investments you can make in your child’s future is saving for the changes they will experience as they grow. Although it may not seem like it now, children rapidly outgrow their clothes, shoes, and toys – as well as requiring new school supplies each year.

It’s important to prepare for these changes by setting aside a little money each month into a savings account specifically designated for these expenses. This way, when they need new clothes or school supplies, you’ll already have the means to purchase them without worrying about how to cover the costs. Not only is this an investment in your child’s physical needs, but also in their confidence and self-esteem – having all the necessary materials at school and proper clothing and shoes builds their self-confidence so that they can focus on learning and reaching their full potential.

3. Save for Homeownership

The birth of a baby can be the perfect time to start planning on buying a new home more suited to your growing family’s needs. While saving for your down payment and closing costs can take time, other steps can help you figure out what your plans need to be.

Start by using an online calculator to determine how much house you can afford. Using basic information such as your monthly income and outgoing expenses can determine what kind of housing payment you can realistically manage within your budget.

The next step is getting preapproved for a mortgage, and finding out if you qualify for any down payment assistance. A mortgage preapproval lets you see how much lenders are willing to loan you. You’ll need documentation such as your bank statements, proof of income, employment details, and more to apply. Your credit report will also likely be accessed to give the lender a more complete view of your financial standing and history.

4. Bring In Extra Money With a Side Business

Whether it’s preparing to buy a house, saving up for college, or simply paying to meet the considerable needs of a tiny human, more money is a welcome thing as a new parent. Consider picking up a part-time work-from-home gig that you can handle while the baby naps or plays independently.

If you’ve always wanted to start your own business, now may be the time. If you decide to, consider forming a limited liability company. An LLC helps protect you and your assets in case the business has issues, which is important when you’re supporting yourself and your family. Online LLC formation services make it easier than ever to form yours, saving you time and money that might otherwise be going to a lawyer.

5. Start Saving for College ASAP

Saving for your child’s college fund is one of the most important investments you can make in their future. Setting aside funds for higher education helps to ensure that your child will be able to attend college without the burden of overwhelming student loan debt. The sooner you start saving, the more time you will have to build up a sufficient college fund to cover even the most expensive universities.

Even small contributions made regularly over time can add up quickly and help to provide a secure financial foundation for your child’s educational prospects. Additionally, there are many tax breaks available when saving in a 529 plan, which makes it easier to save money each month while keeping more of what you invest. Investing in your child’s future by putting away money for their college funds is an essential step in ensuring their success and providing them with endless possibilities/

Managing your money while you try to manage life with a new baby can feel overwhelming. Write a will, purchase life insurance, save for a home, and start a business to earn some extra cash. Taking these steps can ensure that you and your family can start off on the right foot.

For newborn baby photography throughout the Portland area, contact Angi Carman Photography today!