As a new father, your family's financial situation has likely been weighing on your mind. Beyond the medical bills associated with your wife's pregnancy and delivery, you've probably been spending a pretty penny on baby clothes, diapers, toys, child-proofing your home and other necessary items for your growing family. But before you break the bank on immediate expenses, you should also think about planning for a stable financial future for your little ones. Here are a few things to keep in mind.
1. Start saving
It might seem like a major difficulty to begin putting money away right now, but you'll be happy you did when larger and unexpected expenses come your way in the future. It's incredibly expensive to raise a family in this day and age, and having a financial safety net will help you breathe easier when it comes to buying a larger car, saving for college and thinking about retirement.
2. Write a will
While it's never fun to think about the worst occurring, you should begin drafting a will and trust with your spouse. Should you both pass away, these documents will provide a legal precedent about who will raise your children and how their inheritance will be distributed – otherwise, these decisions will be left up to a judge.
3. Manage your expenses
If you're really feeling the squeeze of being a new parent, you might want to take a second look at your monthly expenses. Reevaluating your budget can help you find areas where you're paying too much (is HBO really necessary?) and where you can save extra (have you considered any shoppers' rewards programs?). A few hundred extra dollars in your pocket can make a big difference paying for those mountains of diapers every week.
These are excellent suggestions. I already do #’s 1and2; I’m working on #3.