Budgeting for Baby, make sure you are well-prepared

Before your little bundle of joy arrives, make sure you're well-prepared for the cost of expanding your family. Bringing your baby home should be a time of joy, without the financial stress of becoming new parents. As the old saying goes, if you wait until you can afford kids you'll never have them. But you must be ably to cover basic expenses.

Preparing for baby

During the waiting period, much excitement and attention is placed on choosing names, the perfect pram, a nursery color scheme, baby furniture and myriad of clothes and fluffy toys.

However too often the planning stops there and little thought is given to the family finances. This is a major problem. Managing your money is even more crucial when you have the responsibility of a child. If you have an expensive month and need to live on water and white rice for a few days until pay day, it won't kill you. But a baby can't wait a few days for formula, new nappies or other baby stuff.

The Pre-baby Budget

At least a year before you want to have a baby, start pretending that you're living on one wage. Some couples may already do this, but many don't. A lot of pregnancies aren't planned, but couples caught by surprise still have nine months to get into financial shape.

What it Really Costs

Sit down with your partner and list your income and all your expenses. Be totally honest – can one income cover those outgoings? If not, work out where you can cut back. Don't leave this until after your baby has arrived. Once you've done your list, try living on one wage for a year before you have a baby.

You'll be ready to tackle parenthood on a single wage and will have saved a nice little nest egg. Your savings from the baby training program could also be used to cover your initial set-up costs, such as your baby's cot, a pram and clothes.