Going through your first pregnancy is both an exciting and scary time. Becoming a new mom comes with a host of responsibilities and financial obligations. Staying on track financially when welcoming a new baby can be challenging, but it’s not impossible. When preparing for motherhood, it’s a good idea to stop and assess the big picture of your finances and start planning for the future. Below in this article, we will cover the 3 Smart Investments for New Mothers.
1. Rethink your budget
You should already have a household budget that keeps your spending in check and allows you to set aside savings. Newborns are expensive, and unfortunately, you need to make sure you can afford to have a baby. The larger your family becomes, the greater the need to build your savings. An emergency fund should have three to six months’ worth of living expenses in the event of unforeseen financial circumstances. It’s important to adjust your savings to reflect the updated expenses of a new baby.
Even with your finances well planned, transitioning into motherhood takes time. Rather than make any major financial decisions in the first year, it’s a smart idea to focus on saving and get acclimated with your new budget. Things like purchasing a new home or diving into college investments should be put on pause so that you can keep extra cash flexible.
Navigating the first year of motherhood can be intimidating without the support, advice, and wisdom from other women who have been through it. Truly Mama is a trusted resource for everything you need to know about babies and becoming a parent. At trulymama.com you can find trusted information about baby registries, strollers, car seats, cribs, morning sickness, preeclampsia, childbirth, and getting through toddlerhood. Having a safe place to turn to when feeling overwhelmed as a new mom is a lifesaver.
2. Make sure you have all the right insurances and coverage
You’d think that your health insurance provider would discuss adding a new baby to your insurance plan when using prenatal services. In reality, it’s your responsibility to contact your health care provider and add your newborn to your plan in a timely manner. Most insurers require newborns to be added within the first two months of age.
Many parents don’t have a life insurance policy at the time of their first pregnancy. One of the biggest concerns you’ll face when approaching motherhood is how you will provide for your family in the event of your death. Purchasing a life insurance policy takes the financial worry out of a worst-case scenario and allows you to name beneficiaries for death benefits.
Whether you or your toddler require prescription medications, it’s always a good idea to save money when possible. Internet pharmacies offer a competitive advantage over traditional local pharmacies. CheapoMeds works with Canadian International Pharmacy Association (CIPA) certified and licensed pharmacies to source quality products that adhere to local and national regulations and standards. All products are approved by Health Canada to ensure meds meet Canadian standards as well as the FDA’s safety standards in the U.S. This online pharmacy allows you to save big on prescription drugs and OTC medicines by purchasing generic equivalents that are just as effective as brand-name prescription medications.
3. Plan your estate and name your beneficiaries
Along the same lines as life insurance, it’s important to plan your estate upon the birth of a new baby. Writing a will is the best way to divide your assets among named beneficiaries and designate legal guardians for your children. Deciding what will happen with your estate, who will manage it, and how your children will be provided for saves a lot of headache during a difficult time. It’s important to update your estate documents as your family grows.
Reaching the intersection of family and single life is a big decision that requires a bit of financial thought. When you welcome a new baby, it’s a good idea to re-think your budget, make sure you have the right types of insurance, and take the time to plan your estate.