Dealing with Debt While Bringing Up Baby
As we know, a sudden change in your financial situation is one of the most common causes of debt problems. As a result of the credit crunch and recession, unemployment figures have risen and losing your job without warning can have a severe impact on your circumstances. If you are already overstretching your budget, losing your source of income can bring on bad debt very quickly.
Unemployment isn’t the only thing that can suddenly change your financial circumstances. When it comes to putting increased strain on your budget, nothing really compares to having a baby. The little bundle of joy will, of course, cost you money. It’s not just the added expense though; raising a child will naturally reduce the time you have to work, impacting on your earning power. With the ever increasing cost of child care, rushing back to work may not always make financial sense. Essentially, as with any other financial difficulty of debt solution, it depends on your situation.
Here are some tips from the Debtsolver team that will help you with your baby budget.
As ever, when it comes to being thrifty your two best friends are reuse and recycle. So, if any of your friends have baby stuff to pass on, take advantage. Things like baby monitors, cots, baskets, slings, car seats and any good-quality, hand-me-down baby clothes are great. Similarly, if your friends have skills that can you can take advantage of. After all, what’re friends for? Also, when it comes to child care, how about granny and granddad?
If you’re at home, use the time in to have a bit of a clear out and take what you can to the car boot sale. Have a regular clear-out and take any unwanted stuff to a car-boot sale. Complete online surveys that offer incentives like vouchers, discounts and chances to win prizes. Think of as many other ways that you can earn around your baby’s schedule too. How are your arts and crafts? Can you bake or knit? Are you good with a computer? Basically, think of the ways you can use your skills to bring in a bit of extra cash.
Cut down on your wastage by planning your weekly shop and cooking with fresh, local produce. You could even plant your own vegetables in the garden. Don’t be afraid to stretch out any leftovers the next day. Making soup can be a great way to use up any excess veg too.
This all sounds great for everyday but what about marking special occasions on a tight baby budget? Well, there are just so many occasions in your baby’s first few years, all of which you’ll want to mark with something special, that it can be a real concern financially. Putting these things on your credit card can be tempting but it’s just a way to build up debt that the whole family will feel the effect of in the future. To keep costs down; throw a garden party if the weather’s nice, encourage friends and family to bring some food for a picnic and play some party games.
Above all else, dealing with your debt while bringing up baby relies on how well you manage your money. Luckily, there’s support out there to help you manage your debt while you’re on a baby budget.
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