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Investment Advice to Reach Financial Stability as First Time Parents

The time has come, and you and your partner have decided to expand your family and bring another little life into this world. This is a wildly exciting prospect that most people look forward to most of their early adult years. However, it is also pretty terrifying. This is especially true for first time parents that haven’t got a clue about what they are meant to do.

 

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The time has come, and you and your partner have decided to expand your family and bring another little life into this world. This is a wildly exciting prospect that most people look forward to most of their early adult years. However, it is also pretty terrifying. This is especially true for first time parents that haven’t got a clue about what they are meant to do.

You no longer have to just think about yourself and your partner – your wishes, concerns, and dreams are about to take a backseat to someone else – for the rest of your life. Not only do you have a little life that is going to depend on you for absolutely everything, you also have to consider the financial implications of having a child.

The first chapter of our Ebook An Essential Guide to Financial Stability for First Time Parents gives investment advice and focuses on the expenses that you are likely to incur in the first few months of having your child. The guide explains that “As of 2013, it’s estimated that the cost of having a baby in the United Kingdom – that is, the amount expectant parents need to have saved before their bundle of joy arrives – is around £5 500.”

Here is investment advice and how to work out the expenses of having a new baby:

 

Medical expenses

 

The first thing that you need to consider when having a new baby is the medical expenses that come with it. The cost of the ambulance (if needed), hospital stay, nurse, doctor, gynaecological visits, scans and hundreds of other small things that mount up during pregnancy. Luckily most of these things are covered by the NHS, however, do some thorough research first because everything that isn’t covered has to come out of your own pocket. Have a look at the medical costs that you will personally have to cover, and then the best bit of investment advice would be to save as much as you can.

 

The cost of your time

 

Babies don’t just cost money, they also take up a lot of time. It’s understandable that the mother needs to take time off for physical reasons, but on top of that – both of you will want to spend as much time with your new addition as you possibly can. If either or both partners decide to take off more time than the parental leave policies of your company allow, then you need to consider the financial loss of not working. Another piece of investment advice for preparing for your little bundle of joy, is that if both parents continue to work full-time, then you must remember to consider the cost of childcare while you are at work.

 

Budget for the essentials

 

Understandably, first time parents get overexcited about buying new things for their little one. However, this makes it too easy to go completely overboard and spend way too much on things that the baby is unlikely to need or use. The best investment advice here would be to draw up a list of baby things that you are going to need; luxuries like decorating the nursery and high-end toys, as well as the necessities such as nappies, food, and clothing should be taken into account. A budget can then be created, and if you stick to it you should be able to save the right amount.

 

Clearing your debts

Before your baby arrives, it is great investment advice to have a look at your debt situation and take stock of what needs to be done. Ensure that you try and clear as much of your debt as possible, including credit card debt. This enables you to take on any necessary debt should an emergency occur, and starting your baby’s life with a clear slate is the best way to have a happy, healthy future.

If you would like more investment advice before your baby is born, then download our new guide: An Essential Guide to Financial Stability for First Time Parents. A great idea for investment is to purchase a home overseas that you can rent out to make extra money, use for family holidays when you have your baby, and eventually retire in. Have a look at our portfolio of villas in Calpe for some of the best investment properties in Spain right now.

 

 

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