Posts made in March 2017

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Here’s a scary fact for you: the average family spends around $12,000 on their newborn in the first year of their life. hat money doesn’t even cover the cost of medical bills, which can add the same again on top. This figure only covers furniture, diapers, formula (for those who use it), clothes – so many clothes – and then childcare for those requiring it when they return to work. For some, it can be a huge shock to the system, especially if both parents were working before the pregnancy. It requires some careful budgeting and some smart shopping, but it is possible to prepare for the arrival of a newborn without breaking the bank.

Care for your health

The health of mom while she goes through the stages of pregnancy is of fundamental importance to the healthy development of the baby. But medical bills can really start to add up. The average, straightforward birth can cost around $3,500, with caesareans and other more complicated births coming in around $12,500. When other complications occur during the pregnancy, the bills can really start to rack up. Ensuring you have a great insurance policy is helpful. Don’t be tempted to choose it on price alone – it’s essential that it covers you and your baby throughout pregnancy, as well as any connected complications. If you can prioritize your wellbeing by eating healthily, keeping active, and trying to keep stress to a minimum, you can significantly reduce the likelihood of complications.

Prioritize needs over wants

When the pregnancy test comes back positive, it’s so tempting to start fantasizing about all the cute little booties and pretty crib cushions. Frankly, unless you’re rolling in cash, those things probably come under the umbrella of luxury rather than necessity. It’s easy to be dragged into buying luxuries which are, unfortunately, completely unnecessary.  The baby market is huge, and many objects are marketed as necessities when they’re really not. Your baby needs to be safe, comfortable, well fed, and entertained, but outside of that, everything is a luxury item. Needs include a breast pump, crib or bassinet, bottles for formula, diapers, clothing, burp cloths and more. A crib bumper and cushions, sling, changing table, and other similar objects might seem like necessities, but it’s completely possible to live without them, or improvise with household objects for a cheaper alternative.

Speak to your midwife about costs

If you don’t have medical insurance, don’t fret, there is actually a way to cut the medical bills. Head into the hospital before the birth and speak to the labor and delivery team there. They will be able to give you a list of the items and services which new mothers are usually billed for, but actually, there are plenty of things on your list that are optional. Opting out of services which you don’t need means a smaller bill, which is a bit of a blessing.

Don’t be afraid to rely on second-hand items

Newborn babies grow at a ridiculous rate. You might buy the cutest babygrows or little boots, but there is a fairly significant likelihood that they’ll only fit them for a couple of months, making their cost per wear ridiculously high. There are women the world over facing the same frustration. Which means the market is flooded with barely-worn baby clothes, which can either go in a box in the attic for an indeterminate period of time, go to landfill, or can be passed on to other expectant mothers who don’t want to, or can’t, pay full price for an entire wardrobe for their new baby. You might be fortunate enough to know other moms who will happily donate you their toddler’s old clothes, but if not there are still plenty of options. Ebay is full of bulk lots of baby clothes from moms whose babies have outgrown them. Thrift stores and Goodwill are also a treasure trove, and a quick wash when you get them home will see the clothing as good as new, for a fraction of the price.

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Choose unisex styles

Here is some serious forward planning for you: when you buy baby clothes, choose unisex colors and styles so you can hand them down to any future children, or even friend’s kids. Imagine spending loads on pretty pink dresses for your daughter, only to have to buy a whole new set in a few years when your body decides to give you a son. Greens, yellows, grays and whites are perfect for avoiding this potential frustration, and you’ll also be more likely to be able to sell them on when your baby has outgrown them, if that’s what you’d prefer to do.

Shop around

Some items are inevitable. A crib or bassinet, for example, is a must buy. The temptation is to go to one store and grab every item in one day, purely for expedience. Shopping around could save you some serious cash. Car seats are one item which you can’t avoid, but the price can range from anywhere between $100 to $1000. Spend some time reading some reviews of best selling seats here, and make a decision based on your budget, not just on efficiency. Use reviews of products to determine the best value for money – obviously, some more low-end products won’t have high safety ratings, or might break faster than you’d like. It’s about finding a balance, and shopping around is by far the best way to do that.

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Make a wish list for your baby shower

If nobody is planning you a baby shower, ask your sisters, mom, or best friends to make it happen. Not only is it a great time to get advice from other moms, but it’s also amazing for collecting a few gifts too. People won’t think you’re cheeky if you create a wish list for the gifts you still require, and it lessens the likelihood of repeat gifts, which only need returning. Items such as teething rings, breast pumps, burp clothes, and other non-clothing are the best things to ask for. It is far easier to source clothing yourself, without the worry of having too much or too little.

Buy baby clothes as you go

Babies don’t grow at the same rate right up to adulthood; they go through growth spurts which can see them outgrowing their clothes overnight. Buying clothes as you go, rather than bulk buying clothes in varying sizes before their birth, means you won’t accidentally overbuy on a certain size. It enables you to make decisions relevant to their rate of growth, rather than based on assumptions, and could save you a significant amount of money.

Bulk buy diapers

Other than clothes and, in some cases formula, diapers are one of the biggest costs of having a newborn. Unless you plan to use cloth diapers, one of the best ways to keep costs down is by keeping diaper costs low. Make the most of discount sales to stock out, and keep an eye out for coupons and money off vouchers to bag yourself a bargain. Bulk buying them from Costco or similar stores is one of the best ways, as long as you have room to store them.

Collect free formula samples

Coupons and free samples are a lifesaver, if you can take full advantage. Check out local newspapers, and sign up for online newsletters with milk formula companies to receive free samples. Even if you’re breastfeeding, having some formula options available will give you a whole lot more freedom.

Keeping costs low when you’re planning for the birth of your baby can seem impossible, but it really isn’t. Take advantage of coupons and samples, shop around, and avoid feeling pressured into buying unnecessary products, and you’ll see costs fall significantly.

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It’s not the bills that you know about that are going to hit your finances the hardest. It’s the ones that you would never see coming that you need to worry about. The heavy costs that will knock your income so hard you’ll have to think about dipping into your savings. Are there ways to handle costs like this or just avoid them completely. You bet there are, and you can find the answers you need to these issues right here. Let’s start by thinking about a big bill that everyone forgets to think about.

Boiler Burn Out

If you need a boiler replacement in your home, you could be looking at a bill anywhere up to ten grand. Nope, we’re not exaggerating here, some boilers really do cost that much to replace. It’s why you might want to think about twice about buying a fixer-upper house if you don’t have a lot in savings. Boilers can last a long time, or they can break down, but the good news is that there will always be signs. You can see if a boiler is in danger of breaking. Okay…you can’t but a professional can. That’s why you should arrange for your boiler to be checked regularly, almost like clockwork. A repair is a lot easier to handle and manage, at least financially.

Fun With Fines

There are few fines you could face that will cost you an absolute fortune. There’s a road issue that can be anything up to a couple thousand but most likely a few hundred. One of the best lawyers for DWIs says that the issue for defendants isn’t the points on the license or the record but the cost. It can be absolutely huge and is intended to make you think twice about doing it again. Off the roads, you might get charged with a piracy fine. This can happen to anyone who has ever accidentally downloaded a song for free or watched a film illegally online. People who receive the fines are often picked at random and made an example of. It’s the reverse of a lottery. The best thing you can do is make sure you know the law so that you never break it and leave yourself at risk of an expensive fine.

Weather Worries

Weather can certainly cause expensive damage to your home, as can all different kinds of elements. For instance, you might find that you have damp building up on a wall in your home. This can quickly lead to mold and before you know it, a full blown insect infestation. There are plenty of bugs and beasties that love damp walls. It can cost a fortune to get rid of them.

You may have noticed though that the issues occur in stages. So, if you want to avoid the heavy cost of a fix, get a humidifier as soon as you see the damp patch. This will dry it up in no time at all.

So, while there are certainly expensive unforeseen bills that you might have to deal with through the year, there’s always options on how to handle them.

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 (All posts may contain affiliate links. Please see my disclosure policy) 

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Thinking of ditching the corporate ladder and finding a quicker route to becoming your own boss? Going self-employed certainly has its advantages, allowing you much more freedom over how much you earn and how you earn it. However, going self-employed also comes with a variety of costs that are worth considering first

Your taxes

As someone that is registered self-employed, you are in charge of calculating your own taxes. This can come with its perks, such as being able to claim expenses you otherwise might not be able to working for someone else. However, for many, it can also be a time consuming job which requires extra funding to make more efficient.

Make a miscalculation and you could end up paying a fine. You may wish to hire Joe Callahan for your tax attorney, or another local lawyer to handle these claims – most honest miscalculations can be legally battled against. However, you could avoid any errors at all in your books by hiring an accountant to take care of your books for you. On top of this there is software such as Xero you can buy for taking a DIY approach. Either way, you’ll be shelling out some money to keep your books in check, so make sure you budget for this.

Office space

Thinking of hiring an office? This can be a huge expense when going self-employed. Whether you rent or buy, you then have to further account for energy bills, various commercial taxes and potentially property insurance.

Fortunately, there are ways to cut costs in this area. A co-working space or shared office can be useful for giving you a place to work from home, whilst being much cheaper than a standard rented office. However, if you still want to save costs, working from home can be an even better option. You can outsource remote staff and meet clients in coffee bars, provide your work is wholly computer and phone based and you don’t work in retail or manufacturing. Working from home can have its distractions, so take this into account when choosing where to work.

Tools and equipment

Going self-employed will require you to buy all your own equipment and tools. Even if you’re working from home, you may want to purchase a separate phone and computer to keep your work/home life apart. There may be other costs too such as printer ink, fuel for meeting clients, company vehicles, security and specialist software, handyman tools, cleaning fluids, furniture and perhaps even uniforms. This doesn’t even include extra marketing and retailing costs. Depending on what trade you’re in, costs will vary wildly – some people may hardly need to spend a nickel, whilst others may need funds of hundreds of grand.

Hiring staff

The decision to take on staff should not be taken lightly. Whilst a bigger workforce will allow you to take on more work and therefore take in more money, there are all kinds of costs to consider such as wages, insurance, safety equipment, recruitment costs, training costs, legal costs and employee incentives.

Most business owners initially outsource staff from other companies to deal with aspects such as marketing or admin. Hiring part-time staff or voluntary staff may also be a solution. Don’t take on full-time paid staff until you’re certain you can financially provide all their needs.