Becoming a parent for the first time is exciting, but it can also be stressful, especially if you don’t prepare. If you’re considering starting the amazing journey to parenthood, there are a few things to consider before you make the leap. Take a look at the four things to consider before you become a parent for the first time. From there you can begin planning accordingly so that when your little bundle of joy arrives, you can truly enjoy the moment.
1. Create a Budget and New Baby Fund
Before you have your first child, consider not only your current expenses but also the expenses you’ll have once your baby arrives. Write out a list of one-time expenses (like a car seat, stroller and crib), as well as recurring expenses (like medical care, daycare and food). Once you know what your costs will be, you can start saving for your new baby’s expenses. Think about setting up a New Baby Fund to help you reach your goals and creating a new budget for when your baby arrives to cover recurring expenses.
2. Get Life Insurance
Have you thought about who would take care of your new baby if you and your spouse suddenly passed away? It’s not something we like to think about, but that doesn’t change the fact that someone will have to. How would they pay for such an unexpected expense? One way to ensure your new baby will be well taken care of is to purchase a comprehensive life insurance policy; that way, whoever is going to be taking care of your baby can comfortably afford to do so. Consider USAA’s life insurance to help replace your income, pay off debt, cover burial expenses or leave a legacy for your baby. You’ll also get coverage flexibility, allowing you to make updates to your policy as your life changes.
3. Create an Emergency Fund
Unexpected expenses occur all the time and unfortunately, they just can’t be avoided. Whether it’s your car’s head gasket blowing, the hot water heater breaking or your roof leaking, they’re bound to pop up and surprise you at the worst possible times. That’s why it’s important to have an emergency fund so you can cover those unexpected expenses.
Aim to build up an emergency fund that covers at least three months of your living expenses (six months if you can) so that when the inevitable happens, you’ll have peace of mind knowing you can easily pay for whatever expenses come up — and you won’t have to dip into your new baby fund or any of your savings to cover them.
4. Create a Will
Creating a will might seem like a pretty scary and unfamiliar task when it comes to planning for a new baby, but having one in place is important because it lays out exactly who will take care of your baby if you and your spouse pass away. It might be a tough thing to think about, but it’s crucial to plan for the worst-case scenarios so that you know your new baby will be well taken care of if you can’t be there. So consider contacting an attorney that specializes in helping with wills. If you don’t have the money, there are plenty of resources online that can guide you on how to create a will on your own.
Preparing to bring forth new life can be one of the most exciting times in your life, but it’s important to make sure that you’ve got all of your I’s dotted and your T’s crossed so that you and your child can live the best life possible. That includes creating a budget (and a new baby fund), getting life insurance, creating an emergency fund and creating a will. So get started planning for your little one — you’ll be glad you did in the long run.