Budgeting

Being pregnant and raising a baby is an exciting time in life. Most people believe that they have to get every single one of the latest and greatest gadgets in babyhood, but it’s not the case. Babies need surprisingly little and you can easily raise one or two of them without as much as you think. Money shouldn’t be something that you panic about when it comes to raising children; and yet we all do it.

If you’re not used to living frugally, then raising a baby on a budget is a scary thing to consider. The thing is, we are all closer to bankruptcy than we are to being billionaires, and with the pandemic happening right now, people are losing their jobs left and right. You have to be able to adapt and while that is frightening when you’re a first-time parent, it doesn’t mean that it’s the end of the world. Frugal living is just another adventure, and you’ll realize very quickly that your new baby doesn’t need too many things to make them comfortable. The things that they do need can be purchased cheaply, and there are plenty of ways you can manage on little to no budget at all. 

So, let’s take a closer look at 9 awesome tips that will get you going when it comes to raising a baby on a budget. The first piece of advice before we dive in, though, is not to panic. You have got this – no matter the circumstances.

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1. Don’t Buy Into The Hype

Swing seats and sterilizers, strollers that look like miniature tanks and expensive nursery furniture: you will face it all when you first realize you are pregnant. If you’re in a position where you have lost your job, then you’re going to notice ALL of the gadgets and gizmos geared towards parents more than anyone. Why? Well, we’re influenced by the creators – “buy this now, you need this for your child” at every single turn. You have to train your brain into not buying into the hype. You do not need a Rockit – a gadget that rocks the stroller for you – because you have a perfectly good set of hands. You do not need fifty bottles and a sterilizer because you have the ability to feed your child for free if you breastfeed. Diapers can be expensive, but if you invest in cloth diapers you can save a LOT of money. Being thrifty and living frugally is easy to do if you get past the advertising for all of the products that you don’t need.

2. Shop Smartly

For the things that you do need for a baby, it’s time to get onto Facebook Marketplace and eBay. Strollers are expensive when you buy them from the store, but you can get over 50% off when you buy them second hand. Strollers do not need to be bought new, not when you can wash the liners and the bedding. The same goes for baby clothes. While you may shop for a few outfits and buy them yourself, babies only really need sleepsuits and onesies to be comfortable and warm. Buying these second-hand and washing them all through before the baby arrives will be cheaper and easier than buying everything new. You can even buy preloved cloth diapers and just buy the liners new to save some cash. If you’re smart about where you shop, then frugal baby shopping can and will happen. Make a list of everything you absolutely need (leave off cot bumpers, you do not need a pretty cot, you need a safe one!).

3. Buy Chameleon Items

If you do have to invest some cash in certain items, then buy the items that will grow with your child. Strollers with a newborn carrycot often convert into pushchairs that face forward and last up to 18months and beyond. You can buy a cot bed instead of a cot and ensure that you have a toddler bed later on. You can even buy highchairs that will convert into booster seats for the dining table. These items are all often higher in cost than others, but that’s where you invest wisely. Ask friends and family to help you with these items – especially if they offer to buy a baby gift for you! All you have to ensure it’s that the items you buy fit health and safety regulations.

4. Coupon, Coupon!

Freebies are everything, and if you have the chance to get your hands on coupons for baby wipes and other hygiene products, linens and bulk-buying certain items, do it. There is nothing wrong with running as many coupons as possible. Ask everyone you know who doesn’t have kids to collect them for you, too. You can often buy the big-ticket items like cribs and strollers with coupons, and you can bring the retail price right down when you know where to shop. Don’t forget to bulk buy things like scented diaper sacks and washing powder, too, as babies are messy little things!

5. Breastfeeding

Okay, so this is a sensitive subject for a lot of women. The thing about breastfeeding is that the key is education. Many women give up feeding very early on, or they feel they have to supplement with formula so their baby gets enough food. With the right research, you will learn that milk comes in at day five and a newborn only needs colostrum (liquid gold) from you before that. Speak to your healthcare provider, but do as much research as possible about breastfeeding while you are pregnant. This way, you can be ready to pop the baby on the breast and save yourself a ton of cash in formula, bottles, and sterilizing kits.

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6. Start With What You NEED

There are very few things that a baby needs when they are born. They need something to wear, somewhere to sleep and a way to be transported. You can attend sling meets and get a cheap baby carrier, but be mindful of the type you buy. The Baby Bjorn carriers are not great for babies and their hips; you want one that will wrap the baby to you and put their legs in a frog position so that they’re not dangling with pressure on their pelvis. Buy what you need, and then when you can, buy what you want for them.

7. Look For Help

If you are blessed with a family of excited relatives who are itching to help, rope everyone in. Ask for meals to be made to store in the freezer and ask them to look into their churches and local charities for clothes, soft toys, and bedding. If you can get government help, then research that, too!

8. Be Humble, Accept The Freebies

Free samples are everywhere when you’re pregnant, and with them come some of the basics. You can even get free nasal aspirators and hats for your baby if you sign up with enough coupons and freebies. It’s okay to accept things for free – you’re not receiving charity.

9. Research Cheap Activities

A newborn baby does not need much in the way of activities and entertainment: you are a walking talking entertainment system for them. Playgrounds and most mother’s groups are free to attend, and reading programs are free at the library. You can meet up with friends for a picnic with your babies and you can even stroll around museums for free! Mostly, your baby just wants and needs you from the moment they’re born.

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Everyone knows that raising children is expensive, but it’s not often something that you think about too hard. You might consider whether you can afford to have children, but the total cost of raising a child might not matter to you that much. After all, you’re not going to pay for it all at once. However, it is worth considering the costs that are involved with growing your family, both when you first start and as your children get older. There are plenty of significant expenses to take into account when you’re planning a family and working out if you can afford it.

The Costs of Pregnancy and Childbirth

Before you are even officially a parent, there are certain costs to consider. In the US, the average cost of pregnancy and delivery was $4,500 in 2015 – and that’s for people who have insurance. If you don’t have health insurance or you don’t have very good insurance, the out-of-pocket cost could be a lot more. This is definitely something worth thinking about if you’re planning to expand your family. Pregnancy could be even more costly if you need help with conception. Attending a leading fertility clinic may be worth it to achieve your dream. But it’s essential to consider the cost and what you may be able to afford.

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Initial Baby Costs

Getting ready for the arrival of a baby can be a frantic time. While you only really need a few essentials, there are also plenty of other things that are nice to have. Beyond diapers and clothes, you’re probably looking at cribs, strollers, car seats, and other items to help you prepare for your new bundle of joy. Budgeting for these costs will mean that you don’t have to worry too much about the initial expense involved in having a baby. And once you’ve had the first child, many items can be reused if you want to continue expanding your family.

Growing Your Home

As your family gets bigger, one thing that you might want to consider is a larger home. Ideally, you already have a home suitable for the family that you want. However, it’s not unusual to need to find a larger home as your family grows. You might need extra bedrooms as your children get older and need their own space or more living space, so you don’t all trip over each other. Of course, a larger house is often more expensive, although it might not be if you take other factors into account.

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Ongoing Expenses of Raising Children

Of course, there are many other costs associated with raising children. There are everyday expenses such as food and clothing, plus plenty of things such as dental and medical costs, school expenses, hobbies, and more. You might also want to start thinking about your child’s future, saving money for college, or other costs that will help them to make the successful transition to adulthood.

Growing your family and raising children certainly makes the cost of living more expensive. However, being able to afford to grow your family will look different to everyone.

Looking to improve your credit rating?

Well, we don’t blame you! A quality credit score comes in handy in a whole host of ways. Among other benefits, you get access to the best credit cards and affordable loans, saving huge sums of money in the process.

You don’t have to be a rocket scientist to build good credit either. All it takes is the right approach and a commitment to the cause. Want to learn how it’s done?

Keep reading for a selection of top tips for building good credit.

amazed small businessman with open mouth looking at big bag with money over light grey background

Don’t Be Late With Bill Payments

The key to building credit ratings is demonstrating that you’re a low-risk borrower. In other words, you’re trying to prove that anybody lending you money (be it through this website or any other) can expect to be paid back in full and on time.

That’s where your bills come into play.

Basically, late bill payments are a bad omen as far as credit officials are concerned! They’re taken as evidence that loan repayments would suffer the same fate, causing your credit score to take a tumble as a result.

Conversely, keeping on top of your bills is a great way to give it a boost. Pay your bills on time every month and you’re sure to see your credit rating improve.

Lower Your Credit Utilization Ratio

Credit utilization is the percentage of your overall credit limit that you use.

Imagine having 2 credit cards, each with a $5,000 limit. Max them out each month and your utilization ratio would be a whopping 100%. However, if you only spent $1,000, then it’d be a paltry 10%.

Keeping that utilization ratio as low as possible (somewhere around 20% is best) is another effective way to improve your credit rating. It lets lenders know that you’re sensible with credit and in control of your monthly finances.

Identify and Correct Credit Report Problems

Make sure you check your credit reports each year as well. You can access them from each of the three credit bureaus once per annum (without impacting your credit score) to assess your current credit score standing.

Sometimes, though, you’ll also notice errors, inaccuracies, and inconsistencies that have damaged your rating.

Clearly, it’s in your interest to identify such issues and dispute them with the relevant parties. If you’re successful, you can see an immediate improvement to your credit score.

Remember These Tips to Build Good Credit

Anybody who improves their credit rating stands to gain in a plethora of ways.

Loans become accessible and more affordable, better credit cards are made available, landlords are happier to accommodate you as a tenant, and so on and so forth. The list goes on and on.

The tricky bit is knowing how to get started! Hopefully, the tips in this post will help in this regard. Keep them in mind and you should be able to build good credit in no time at all.

Want to read more articles like this one? Search ‘credit’ on the website now.

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You might have mastered the art of managing your money, but just because your education is finished doesn’t mean you can’t pass on this knowledge to the next generation: your kids. 

Teaching your kids excellent money habits will make them more confident once they become old enough to earn a wage. Too often, parents neglect to give their kids a crash course in saving, budgeting, and spending money. When they finally get their own money, they end up irresponsible, splurging money on video games, clothes, and candy. While they are allowed to indulge now and again, this could be the start of bad habits which are hard to break. 

Clear Savings Jar 

It’s always best to start early, and if you’ve got younger children learning about money for the first time, you will be able to teach them about money management by giving them a physical representation of the cash. A clear savings jar is the best way to do this.

With a jar, they can see how much or how little money is available. It will teach them the consequences of spending, and that there is no such thing as an evergreen money tree. Savings jars are a better alternative than piggy banks, as kids will get to see the changes in real-time, rather than fill up the piggy bank and wait for the surprise. 

Be An Example to Them

Even though you’ve got plenty of money lying around, tucked behind sofa cushions, or protected in your bank account, you can’t buy on every whim. Children will model your behavior in all aspects of life, and just like they will copy your diet and actions, they will also want to mimic your spending habits. 

If you spend your money frivolously, they will think this is normal. It isn’t normal, though, even if you’re a millionaire. It’s vital to demonstrate your restraint when teaching your kids how to manage their money, as you will be the first person they learn from. 

Demonstrate Opportunity Cost

What does the opportunity cost? It is merely a way of comparing the effects of purchasing certain things. This is a useful method to do with kids who are old enough to understand what money is, but not old enough to earn their own money from a part-time job. 

When faced with opportunity cost, you can remind them that if they buy x, they will not be able to afford y. This tactic can encourage them to be more careful about their spending and consider whether or not this is the right purchase to make right now. By understanding outcomes, they should become more sensible with their spending. 

Commissions vs. Allowance

You shouldn’t give kids money just because you think you should. Consider the benefits of an allowance versus a commission. With an allowance, you will give your kids money every week even if the dishes pile up, they don’t take the dog for a walk, and their grades are at rock bottom. 

Compare this to a commission that rewards kids for chores and hard work. They won’t have money for free in the future, so a commission instills a positive work ethic. When they are paid for their work, they will understand how vital contribution is if they want to earn a living. 

Advise Against Impulse 

Impulse buys are the energy of proper budgeting. Kids will see something they want, and they will buy it straight away. It might be a new video game to play with friends, or it could be a dress for them to wear to the school dance to impress their friends and their crush. 

However, it’s vital to advise against impulses at all opportunities. Even if you understand their need for it, encourage them to wait at least 24 hours (although, preferably a week) to make the purchase. If they still care enough to buy it once this time has passed, then it’s clearly not an impulse. 

Give Them a Bank Account

When your kids are old enough, you can help them set up a bank account. You can usually open an account as young as 13, and whether they get paid with an allowance or a paper route, they can deposit this money into their account and watch it grow. 

Compare this to the clear savings jar you used when they were little nippers. While they won’t see the money increase, they will see numbers tick up and up with every deposit. This will help teach them more mature money management, which should prepare them for dealing with more substantial sums later on. 

Help Them Budget

Nobody knows how to budget naturally; it is something that you must learn. You learned how to do it, and now you can pass on this wisdom to your kids. 

Teenagers don’t pay for much. However, once they get to an age where they need to be responsible for themselves, such as paying for a phone contract or their car, they need to know where the money is going and how much they can afford to spend. Sit down with them and set up a budgeting plan so they can visualize where each payment goes. 

Show Them Different Options

As your kids get older, you will want to help them get into the most comfortable financial position possible without padding their bank accounts yourself. After teaching them all about budgeting, you can consider looking into other options to help them build their bank balance. 

One of these options is investing. While they might think they aren’t old enough to consider investing, there are lots of different platform types for them to explore, while micro-investing is also a low-risk avenue to consider. 

Smart Money For Smart Kids

Your kid is unlikely to listen to your endless lectures on managing their money correctly, but the more you persevere, the more appreciative they will become. By catching them early and drilling excellent habits into their heads (not literally, of course), you can prepare them for the rest of their lives, be more sensible and careful with their spending, and reap the benefits by doing so.

Running a business is tough at the best of times, but the emergence of Coronavirus is the biggest challenge most companies have ever faced. Unfortunately, not all will survive.

The effects of the virus have been all-encompassing, felt by businesses big and small around the globe. The figures are frankly terrifying and, on a scale, not seen since the Great Wars. By September 2020, it’s forecast as many as 195 million workers could lose their jobs.

Nobody knows for sure how Coronavirus is going to pan out, but most experts agree we are at the thin end of the wedge, and things are likely to get much worse before they get better. Including finding the rights balance of communication, advertising, and business management strategies. Working with professionals like Pedram Zohrevand, who can help guide you towards making the most of your at-home business.

For those who cannot or are not in a position to hire an external business management firm, there are still steps you can take now to mitigate the future impact of the virus on your business. 

Invest in your website

Without exception, the businesses which have survived best through the outbreak (and in some cases even profited) are those that already had a streamlined website and prominent web presence. 

With so many consumers moving online and a general fear of going outdoors, in today’s new reality, your website is quite possibly your company’s greatest asset. 

Moreover, with the increase in home-working, businesses are being forced to embrace new technologies to operate and survive. There has never been a more critical time to invest in your online infrastructure and, in particular, your website.

Improve your use of social media and your social marketing

Social media has been an integral part of the corporate marketing mix for a good number of years; however, during the virus – with more people spending more time at home and online – effective social marketing has become crucial. 

A well-implemented social strategy increases your company exposure while allowing interaction with your clients (new and existing). Invest more time and, if required, money in your social media marketing. 

While the usual suspects will always be valuable (i.e., Facebook, Twitter, LinkedIn), don’t forget the smaller channels like Pinterest, Instagram, and YouTube – each of which can be hugely beneficial for your company’s marketing. In particular, YouTube is the world’s second-biggest search engine – ignore it at your peril. 

Apply for a business loan

The bottom line is that companies need capital to operate and, if the forecasts prove true, it’s quite likely your company is going to need a cash injection to see you through the pressures of the coming months. 

Online financing has exploded in recent years, with independent companies offering tailored solutions at unbeatable rates and staggered repayment schedules. There is now a huge range of loan companies operating online such as Biz2Credit offering bespoke funding plans for businesses of all sizes and sectors.

Consolidate assets

In times of financial difficulty, consolidating your business assets and resources can help streamline your business and reduce your overall operating costs. 

Look at re-purposing assets or perhaps even retraining members of staff, so they have special skills. By increasing your productivity and mitigating downtime, you will gain added value from existing resources while reducing your operational overhead.

Outsource more

Outsourcing presents many advantages to companies – particularly companies looking to reduce fixed costs. By outsourcing, you only use resources when they’re needed and can also pick freelancers on a project-by-project basis, precisely matching their particular skills to the job in hand. 

Outsourcing removes downtime and your liability for covering sickness/unemployment benefits. Resources are enlisted purely on an ad-hoc basis – as and when you need them.

The short-term (and possibly long-term) future for business points to a rocky road ahead. It will be a case of survival of the fittest, and unfortunately, not all will make it through to the other side. Making sensible preparations today will help you weather the predicted storms of tomorrow. 

Photo by Micheile Henderson on Unsplash

We will all go through periods in our lives when money is tight, and we need to learn to stretch the money we have until things even out again. A lot of people are going through that struggle right now. No need to worry, there are many different ways that you can make those dollars last. 

Make a Budget

It is always important to make a budget. You need to have a clear understanding of what money is coming out and what your expenses are totaling. When you can see where your money is going, then you will be able to see ways you can cut down on spending or spend your money in a more efficient way. 

Some things you may discover when you create a budget is that you are spending more money than you realized. Things like recurring payments, monthly subscriptions, or small impulse buying can all add up over time. 

Evaluate Your Savings

Hopefully, you have been saving a little bit before and have some money to fall back on. If this is your situation, then that means you need to evaluate your savings account and determine how much you have to help support you and how long it will last. You will also want to make a plan to build your savings account back up once you are back on your feet. 

Meal Plan

Planning meals is an important way you can save money. It will help you save money when you go grocery shopping, and it will make you less prone to eating out spontaneously, which is more expensive than cooking at home. 

Making a meal plan will allow you to know the food you will need to create the meals for a week or a couple of weeks. Once you have that information gathered, you can make a focused grocery list that will cut down on impulse buying. It will also help ensure that the food you are buying actually gets eaten instead of going bad in the fridge. 

Earn Extra Money

Even if you have scaled back and started using your money wisely, you may still be a little short. Luckily, there can be a few easy ways to make some extra money online. Some ways will require a lot of time and some specialized knowledge, but some can be done quickly and with little experience. 

Using opinion sites to bring in a little extra cash is easy and can be done while you are watching television in the evenings. Taking surveys or reviewing products at home on your computer or phone is easy, and there are a lot of options. You will want to look around and find the best places for surveys that pay and then sign up. Once you are signed up, you can start right away. 

Receipt trackers are another way that you can earn a little extra money with just a little bit of effort. Simply snapping a picture of your receipt can earn you points that then accumulate into cash. You can also use apps to earn money back on the regular food and household items that you normally buy the same way.