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Having a baby can be one of the most joyous events of your life. Unfortunately, it can also be one of the most expensive, since all the costs of raising a baby can really add up. However, there are many things that you can do to save on expenses and make paying for your baby more affordable.

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1. Prioritize your spending. Many parents feel that they need to have everything they will need for baby ready by the time he or she gets home. But it would be better for your budget if you prioritized immediate needs and put aside less urgent expenses. For example, instead of buying a crib, the baby can sleep in a bassinet or cradle in your room, and you can postpone your purchase for a few months.

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2. Choose gear that you can convert as your child grows. For example, you can buy a crib that can convert into a baby bed or a stroller that changes to accommodate your baby as he grows into a toddler. If you plan on having more children, you can also choose strollers that convert to accommodate two or more babies. You can also buy clothes that are one size larger since your baby will quickly grow into them.

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3. Buy baby products in gender-neutral colors. Instead of buying blue or pink items depending on the gender of your child, choose items that are green or yellow, for example. This will allow the gear to be passed on and used by future children.

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4. Skip nursing-specific clothes. If you are breast-feeding your child, you don’t need to buy clothes that are specifically designed for nursing mothers. Instead, blouses that button in front and tank tops will do. Or you can simply cover up with a scarf when nursing your baby.

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5. Buy items in bulk. This is a simple budgeting tip that new parents should adopt. For example, since you will be using a lot of diapers, there is no reason why you should not buy them in bulk quantities. In addition, you’ll be saving time and money since you won’t have to replenish these items as often.

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6. Consider making your own baby food. Doing this can also be healthier for your baby. All you have to do is invest in a small food processor and you can be sure that your baby has a regular supply of fresh food made with fruits and vegetables.

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7. Share products with your baby. You don’t need to buy products that are marketed as being for babies, such as detergents and body washes. Many of these items that are made for adults are actually also suitable for infants, as long as you make sure that they are free of ingredients that could irritate your little one as well as being gentle.

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8. Look for online flash sales. Shopping online can help you save money and you can enjoy even bigger savings if you encounter online flash sales. In addition, you can also look for coupons for products that you commonly use that you can redeem online, or print out and take to a physical store.

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9. Ask about tax deductions. In addition to the $4,000 deduction you can claim for each dependent child, there may be other tax exemptions that you can qualify for, such as the Child and Dependent Care Credit if you pay someone to take care of your child.

The best way to ensure that the costs of having a baby will not be ruinous to your finances is to prepare in advance. Before you give birth, estimate how much you will spend on baby costs so that you can plan in advance how you will deal with them.

Does it feel like your hard earned money just slips through your hands during payday? Do you feel like you’re not earning enough no matter how hard you work? It is sad to say that many Filipinos feel this way. However, the good news is that there is a simple solution to help you save more and prepare for the future.

The Magic of Budgeting

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Everyone knows what a budget is. Even the old man selling balut at night knows what it is and what it is for. It’s a pretty common concept yet, unfortunately, only a few Filipinos apply it in their lives. You can ask your friends or coworkers if they use a budget. You can also ask them if they stick to it – meaning they strictly observe their budgets. Prepare to be disappointed when you find out that not many use or even have a budget.

No matter how simple it may sound, making a budget and being strict about it will provide many life changing benefits. For one thing, it will help you find out where your money went. It will also be an eye opener showing you what your real priorities are. Finally, making a budget will help you save money.

Benefits of Proper Budgeting

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Proper budgeting can actually benefit Pinoy households in many ways, other than the ways that we have already mentioned above. Let’s go over a few more of them:

*Practice self-control*: Making a budget will help you practice self-control. You will be making a list of items you need to spend on and opposite that will be the amount you have allocated for each item. Anything that is not in the list will not be considered – no matter how much your son or daughter begs for that new cellphone.

*You can provide funds for the neglected aspects of your life*: When was the last time your wife had money to go to the parlor to make herself look pretty? When was daddy able to have a really good haircut? When did you last have enough money to go to the dentist? Proper budgeting will help you allocate and save money for some of the things you may have neglected because you focus on work too much.

*A budget will help you identify your needs from your wants*: When you outline a budget, you will have to identify your needs and wants. Your list of needs represent your necessities – things that you can never live without, just like your water bill, electricity bill, food, etc.

Your list of wants represents items that aren’t that necessary but you will want to spend money on anyway, if you can. You can still live a happy life without the latest Samsung phone in the market, right? You will spend money first on your needs list, and only when that list has been covered will you spend money on your wants list.

*Budgeting for the unexpected*: Having a budget will help you set aside money for unexpected expenses like a child getting sick, an accident, or any incident you were not expecting. This part of your budget is called the “emergency fund.” It’s a little amount that you hold on to and never spend unless absolutely necessary.

You start with a small amount, and then next payday you add to it. Any excess funds you save during this payday will also go into that emergency fund. Your emergency fund will be a big source of comfort when an actual emergency comes around – at least you won’t have to borrow money from anyone just to pay for hospital bills, etc.

*Plan for future needs*: You will eventually retire from work but you will still need money. Most people rely on their kids when they’re elderly. However, if you have been following a budget your whole life, you should have some savings that you can use when you’re retired.

Preparing for Rainy Days

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A budget is simply a tool that will be useful to you if you live by it. It will eventually teach Filipino households some financial discipline. By strictly adhering to it, Filipinos will only be helping themselves by saving more money for present and future needs through proper budgeting.

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Nine Stress-Free Budgeting Tips for New Parents