Being a new mom brings lots of responsibilities. Including some financial ones. The cost of having a new baby in the house can be more than some had bargained for. With healthcare and diapers costing quite a bit before you start on anything else. What other financial matters should you as a new mom be considering?
Purchase Term life Insurance
If the worst happens to you, how would your family cope financially? Suddenly they have to face many extra costs, as moms do so many things for free. There could be childcare and babysitting and other expenses associated with children.
There are the expenses that would be incurred if you died, such as your funeral. If you discover more about getting insurance cover for these circumstances now, you can have peace of mind over this matter. You might think you don’t need to worry about this stuff now. The better prepared you are the better it will be for your whole family.
Life insurance need not be as expensive as you think, especially if it is for a set number of years. Most parents have Term life insurance to cover their children until high school.
You should also consider long-term disability. In the event of a serious accident in which you become disabled, any income you lose is partly covered for a while at least.
Make a Will
Everyone has some assets. even if they are not worth a great deal. You should make a will to ensure that whatever assets you do have go to the people you want them to. Without a will, there can be lengthy legal battles after losing someone they loved. that is the last thing a family should have to go through.
You could also take the opportunity to specify who you would want the legal guardians to be in the event that both you and your partner were killed in a road accident.
Start Saving
Start saving some money for the future. It does not have to be large amounts, but as you see your money grow, it will encourage you to save even more. It could be that it is to be used for your children’s college education, for their wedding or maybe for your retirement. Once you get into the habit it becomes easy and for some people turns into an obsession.
Build an Emergency Fund
It makes financial sense to have some money behind you in case of emergencies. Keep this money should in a separate account aim to save enough for six months living expenses. Then if while your children are growing up, you have to change your job or find yourself out of work, you will have a breathing space to get things in order before your finances get out of hand.
When your family starts, you will have so many things to think about that finances could be the last thing on your mind. You should find the time at some point though to sit and sort all these matters out, or at a later date, you might regret that you didn’t.