One of the most beautiful time in the life of any parent’s life is when the kid is born. You don’t want to spend even a second away from the newborn. However, you cannot ignore the additional stress on the finances created by the new member of your family.
The maternity leave is mandatory in the UK but the salary may not be enough to cover the initial expenses, which makes financial planning essential for this important phase. Here are 10 tips on creating a budget and saving for maternity leave.
- Know the Parental Leave Policy
Before going on leave, you must have a conversation with the HR about the company’s policy on maternal leave. Ask them about the duration, benefits, and use of vacation with the leave. It will give you an idea of the time you will be spending at home while getting paid.
The conversation will also help you estimate the possible income and expenses during the maternity leave. After HR, inform the managers and co-workers about the duration of your leave.
- Enlist the Expenses
The time is perfect to start monitoring the family budget and stick to it. Include every member of the family in it and ask them to write there every expense for the last 30 days. Now, you will have the list of expenses of the whole family to create a budget.
Hold a weekly meeting to ensure everyone is still tracking their expenses. You cannot have the exact number for the future. However, you can use the outcome for the closest projection.
Do not try to invade the private space as some might not share their guilty expenses. Also, the earning members of the family must be a part of the whole plan to spend less and save more.
- Reduce the Spending
When the income is limited, the only way to increase saving is by reducing the expenses. Estimate all the income and expenses during the maternity leave period. Subtract the expenses from income.
If the result is negative, it is time to curb the expenses. You must create a budget to bring the gap closest. You can take loans for bad credit with no guarantor to cover the gap.
Eliminate a few amenities from the budget if the income is slightly higher than the total expenses. You must try to increase the number on the positive side.
- Automate Savings
There will be no temptation to use the money on fancy baby stuff if you don’t see it. Therefore, you must automate a predefined amount to the baby fund each month building to the due date. You can ask the employer to transfer the amount directly to the savings amount from your paycheque.
Keep track of the money in your savings account. It is a common mistake for people with automated savings. Otherwise, a simple calculation mistake can ruin the whole budget or planning.
- Keep an Eye on Financial Help
It is quite common to take financial help after the birth of the child. You should have the right credit card in your pocket to make the payments. The interest rates, benefits, and repayment terms are different for every lender.
Also, complete your research for the best possible loan before any emergency. You can apply for instant cash loans to get the amount in your account within hours.
- Use Collective Efforts
Your whole family should take a part in savings and following the budget for the time to come. Ask the members to search for ways to reduce the expenses. Also, give them a task of finding coupons for every possible purchase.
Any benefit such as tax return should be sent to the savings account instead of some needless purchase. Ask for guidance from family, friends, and neighbours from their experience.
- Find Used Items
Used items in good conditions are always a great money saver. You can ask the family and friends about any items that might come useful. It will also prevent the purchase of items that are not required.
Try to prevent any registry for the baby items as they often go unused. Put an advance only on the items that are essential and not available for second-hand purchase.
- Focus on Professional Skills
The maternity leave is long enough time to make you feel rusty when you return to the work. Add the extra leave that you might have to take for something that goes unplanned. Therefore, you must spend some time of the day or week to maintain your professional skills.
It will act as a stress-busting activity when you spend some time not thinking of the baby. Your career will not face a major setback after your return.
In the end, you must prepare yourself for any emergency or unexpected expenses. You will have peace of mind while welcoming the new member of your family.