How to Get By on One Income When Baby Arrives
For a few months after the birth of a new baby, most couples go from two incomes to one. Some then have a desire to stay at home with their new child for a few years, which can mean a big change to their long-term income.
Even couples caught by surprise still have nine months to get into financial shape. Here are tips on How to Get By on One Income When Baby Arrives.
1. Save. You have nine months from the time you become pregnant until the time your little bundle of joy arrives. Use this time to put money aside every payday while you’re still earning an income. Set up a high-interest savings account and be methodical about regularly contributing. Learning to make sacrifices early on and creating long-term saving habits can make a big difference on how long you are able to stay home with your new baby.
2. Sign up for New Parent Offers. Many companies have new Mom or new parent offers you can sign up for even before the little one arrives. You can score some pretty great stuff and lots of coupons with some of these offers. Here are a few good ones:
- Target Baby Registry Free Welcome Kit
- Honest Co. Free Diapers & Wipes Trial Kit (+shipping)
- Free Gerber Nutrition Kit 1-800-408-7277
- Enfamil Family Beginnings – Free gifts & formula coupons
- Similac Strong Moms Kit – Free Gifts and coupons
3. Wants aren’t always needs. Take a look at your purchases. Are they a ‘want’ or a ‘need’? Usually, the more we earn, the more we tend to spend so cut back on over spending now to save every possible dollar. Frequently going out to restaurants and spending $5 on a specialty coffee are ‘wants’ and can easily be cut back. Put off the things you can live without for now.
4. Eliminate debt. Credit card debt and high-interest loans are costing you money that you could use in the long-run. Prepare to live on one income by paying down, or paying off, these debts. If you’re not able to do that, at least shop around for credit cards that have a lower interest rate or allow free balance transfers.
5. Reduce expenses. Take a look at all your monthly bills – utilities, groceries, insurance – and come up with a plan to reduce them. Compare service providers to get the best deals for the lowest cost. You may even be able to eliminate larger bills by getting rid of the service altogether. If you no longer use a landline, get rid of your phone service or sign up for an internet service. Cancel your cable and sign up for an online streaming service like Netflix or Hulu instead. Don’t run your air conditioner unless it’s essential and turn off lights and appliances that aren’t needed.
6. Buy second hand. Parents-to-be can easily overspend on baby items; adding hundreds of dollars to the household budget. Goodwill and thrift stores offer great prices on new and gently used items. Nursery furniture and toys can be picked up at a fraction of the price. Try visiting sites like eBay or local online classified listings. Check with friends and co-workers for needed items. If a couple is done having children they may have plenty of gently used items they can give or sell you on the cheap.