Seanest - Jan Van Parijs Properties

New parents advice: The importance of budgeting for your investment strategy

Becoming a first-time parent is an unparallelled life experience that brings boundless joy and happiness. Besides fulfilling the deep desire to start a family, it also alters your life in beautiful and unimaginable ways.

 

Having a baby is the start of a wonderful journey, and while there’s no set guide to good parenting, there are some general rules of thumb to keep your finances in good shape. One of these is maintaining a solid investment strategy to ensure your peace of mind, which allows you fully focus on your newborn.

As a parent, you’re responsible for providing support structures so your child grows into a healthy, independent adult. A major factor in accomplishing this comes down to budgeting your finances accordingly and restructuring your investment strategy. Here are some sound budgeting tips to help you start: 

 

A pre-baby budget

 

If you’re expecting a newborn then the first thing you should do is consider pre-baby costs. On average, the first year of your baby’s life costs £11 224. Schedule a time to sit down with your spouse to calculate how much extra money you require ahead of your child’s arrival and how you plan to acquire the money.

Each partnership begets a different solution. Perhaps you’ll have to find creative ways to supplement your income, cash in on savings, service debt or cut back on expenses. There’s no one-size-fits-all ultimate budget plan, but there are standard practises to help you create the best investment strategy for you and your family.  

Try to include monthly savings in your basic budget. Now that there’s a little one on the way, you need to budget for their possible emergency expenses as well. We’d recommend you open a ‘new arrival’ savings account to ensure you don’t spend money ahead of time.

Baby care requires making lots of extra purchases so when drawing up your budget, don’t overlook the cost of prams, car seats, baby food, disposable nappies, bedding and cribs. And of course, your partner will also added car and a maternity wardrobe.

 

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 A post-baby budget

 

Newborn expenses and debt adds up quickly; think about unpaid parental leave, child care expenses and small luxuries that seem insignificant when you buy them but once tallied up become unnecessary expenses. After your baby is born you should readjust and re-evaluate your budget on a monthly basis to make sure you’re not over or underspending.

Without losing sight on your long-term investment strategy, consider that there will be times when you’ll want to spend quality time with your partner and might need a babysitter. In addition, your utility bills could increase and you’ll be paying for extra child care services.

Having a solid investment strategy also includes budgeting for future goals like your child’s education and extra-mural activities. As a new parent it’s inevitable that you’ll be tempted splurge and lavish your little one with gifts, but don’t sacrifice long-term stability for short-term satisfaction. What’s more, wracking up your credit card results in paying off high interest rates and inflating the initial monetary value of your purchase. An easy solution is to factor a small amount of miscellaneous spending into your post-baby budget.

Paramount to taking financial care of your family is planning for larger expenses that come with parenthood. You might upgrade to a family-friendly car, take out extra mortgage on the house to extend the living area or move to a new home. Never underestimate how sound financial planning contributes to a happy family life. Invariably, your budget should complement your lifestyle at every stage and at the same time enable you to have a prosperous investment strategy.

Download our new guide An Essential Guide to Financial Stability for First Time Parents for valuable advice to help you prepare for your first baby. Now that your family is expanding, perhaps you’re looking for greater financial stability and want to grow your assets by investing in overseas property. We’d recommend looking at our property for sale in Calpe. It’s the perfect destination for a fun family holiday.

 

 

 Image Credit: parenting

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