You may hear that buying a home is the biggest expense you will face, but that is not always the case – sometimes, becoming a parent is more costly than acquiring a home, especially since you are a parent for life – make sure you understand these Financial Milestones to Hit Before Having Kids.
That’s why there are a few milestones you will want to hit before becoming a parent.
If you are already a parent, there are a few money moves you should make as soon as you can.
Table of Contents
Reduce Your Monthly Expenses
Working more hours may afford you a higher income, but that is not always possible when you have a child.
Depending on your job, you might find yourself needing to take some unpaid days to care for your kids.
That’s why it’s so important to lower your monthly expenses, even below what you need to live on.
One way of cutting back is by refinancing student loans with NaviRefi to a new loan.
With better repayment terms and a potentially lower interest rate, you can put the extra money toward something else.
Having a Steady Source of Income
Having a steady income source does not necessarily mean you have to have a typical 9 to 5 job, but it does mean you will know about how much income you will be getting each month.
That could be through full-time employment, side gigs, or self-employment, but the important thing is to have a foundation that can support a family.
Consider careers that you may still be able to have even after the kids are born.
Some industries lend themselves better to remote work than others.
It’s a good idea to get a salary that will help you cover child care.
Even if you don’t feel you need it now, you may need it at some point in the future.
Try to get something with benefits, such as health insurance, a good sick leave policy, and parental leave.
You might even look for something that affords you some amount of freedom over your schedule.
That way, you will have the flexibility to care for your kids when needed.
Set Up Your Emergency Fund
Being a parent means you might experience something different every day, so you will want to be financially prepared for what life may throw your way.
Whether it is an unexpected emergency room visit or a teen’s car accident, having an emergency fund in place can prevent you from becoming overwhelmed from unexpected expenses.
If you lose a source of income, the fund can tide you and the rest of your family over until you find another one.
Saving for College
The costs of college are going up, and if you want to help your kids, the time to think about it is before they are even born.
That will reduce the potential burden of looking to borrow money regarding paying for their education when the time comes.
Make sure you are in a place where you can put away a little each month for their future education. This helps them be set up for success.
