How to Budget Before Having Children

If you are planning a family then you will know that your expenses will go up dramatically once you have a family and it may also be the case that your income will fall. It is therefore really important to budget before having a family so that you do not get any nasty shocks once the children come along. If you already have some children and are planning on having more, then the same applies. You may worry that if you do start looking at the figures, they may indicate you do not have enough money for a family and this could put your off looking. However, it should be possible to find the extra money that you need, but you may just have to make some lifestyle changes to be able to afford it.

The cost of children

Calculating the cost of children can be very difficult, but it is possible. You will need to be aware that it is likely they will get more expensive as they get older as they will need more expensive clothing, eat more and want more expensive things as well, such as phones, computers, clothing etc. This means that you will need to make sure that you plan for that as well as check you have enough for when they are babies. As well as the extra money that you might be paying out, you also need to cost for any reduction in income you may have. This could be especially hard-hitting if both parents work and one gives up work or both change to part-time work so that they can care for the child themselves. This lack of income could actually be a far bigger cost than the cost of the food or other expenses the child will bring.

How many children?

As part of your calculations it is important to think about how many children you can afford. This is because the costs can escalate with extra children. You may think that the savings with hand-me-down clothes and toys will really help, but if you need to buy a bigger car or home, then the costs will be very much more significant. It can be hard to predict how much a child can cost and it will very much depend on their specific needs, but you can estimate. Do not forget that there is a possibility you may have twins or more. Although the chances are low, it is possible and so you might want to consider allowing more money just in case.

How to afford the children

There are things that we can do to help to afford children and it is much better to plan before you start trying so that you are confident that it will help and in the habit of doing things a bit differently. By buying items that offer good value for money, and only items that are necessary, you should be able to reduce the amount of money that you are spending. Comparing prices is really important and you will be able to see whether you are paying a lot more than you could be. Of course, quality is important as well which is why you should be aiming at finding good quality for money and then you will be able to ensure that the things you are buying last well.

Many parents will end up spending a lot less on themselves than they have done before and spending that on the children instead. This means that although their spending may not go down, it is moved to a different area and so they end up buying more of what they need rather than what they want. This is probably the way most parents will do it, although some might choose to get a loan from Boutell and then work hard on repaying it once the children are at school and parents can afford to return to work.

Working with children can be difficult as they need constant looking after and so if you do go to work you will need to pay someone to look after them. Some people are lucky enough to have a family member that will be able to do this for them and will not charge them. However, this is not the case with everyone and this means that the cost of care needs to be added in. It could be cheaper for some people to reduce their working hours or give up work entirely. However, it is worth considering whether it could be possible to work from home while looking after a family. You may be able to do this for your current employer or find something else. Perhaps doing some freelance work or finding some work form home work online will help to bring money in. This can be a bit ad hoc though, so if you are doing calculations, it may be wise not to assume this will be massively successful.

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Top Tips on Saving Money at Christmas

When Christmas comes along It can be a time when many people struggle. They worry about the cost of everything from the gifts and wrapping to food, drinks and decorations on top of all of the concerns about making sure you buy the right things, see everyone that you wish to, cook the perfect food and keep everyone happy. This means that you may not have time to think about where the money will come from and it could end up being a stressful time for everyone. It could mean that you will end borrowing money in a way that will cause you worry as well, so it is a good idea to set a budget and plan your borrowing carefully so that it is affordable.

Keeping to a budget

It can be wise to calculate how much you can afford to spend and making sure that you stick to a budget and can afford all of the items that you need or want to buy. You will therefore need to start by calculating how much you can afford to spend by seeing what you have in the ways of savings and how much you will be able to afford from your salary. It can be difficult to think about this, especially if you are the type of person that really likes to spoil people, as you may not want to hold back on what you are buying. You may feel that it is unfair on the people that you are buying for or just feel that you would like to give a lot. However, it is worth remembering that most people that you buy presents for would not like to see you go short of money because you are buying them presents. Try not to let the marketing make you think that you are only kind and generous if you spend a lot of money as this is not true. For many people having a letter, seeing someone or just having a small gift that shows they are being thought of, will be enough for them. You may also be able to find some really great gifts on a budget anyway.

Finding low price items

It is worth starting your gift search by thinking about the fact that often it is one thought out and special present that means more than lots of little gifts. So, it does not matter how much the item costs but whether it is well thought out and the thought and effort that went into it. Many people appreciate something handmade, for example and this sort of thing does not have to cost a lot of money. You may not want to go into the cheaper retailers, but it can be worth a look as sometimes they will just have the perfect thing. Another idea is to look in charity shops to get something second hand or something new from them, they have a big variety of things and so there is a chance that you will be able to find something that will work. You might also be able to look in sales and at discounted products. It can be more of a case of finding the time so that you are able to search for the items that you need. This means that it can be wise to start looking really early, then, you will be able to look in lots of places and make really careful decisions about what you choose to buy. It is wise to make sure though, that you are self-disciplined. It can be difficult if you buy an item for someone and then find something else that seems more suitable and get that as well. Try to avoid doing this and only buy the one item and stick carefully to your budget.

Borrowing carefully

If you do decide to borrow, then make sure that you give it some careful thought. While borrowing is not a problem for everyone, you will need to be sure that you are careful with it. Make sure that you are aware as to how much you will have to repay and how often. This will mean that you can decide whether that is something that you will be able to afford. It is important to pick a loan that is affordable and then it will be easy to repay and not become a problem for you. It is also worth calculating the cost of the loan and deciding whether you think that it is worth that money. This will depend on how much you, personally, are prepared to pay. Finding the right loan for you is really important as it will make it easier for you to manage and better value for money. Therefore, it is well worth spending time investigating all of the options available. This will take time but it will be worth it as you will end up with a loan that is suitable for you.

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