How do I plan financially for having a baby?
My spouse and I are planning to have a baby in the next year or two. Everyone says kids are expensive but I don't know what to actually budget for. What are the big costs to plan for? How much should we have saved before having a baby? Should we both keep working? How do we afford daycare?
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3 Answers
I'm not a financial advisor but I've learned a lot from personal experience. The most important thing is to start early and be consistent. Even small amounts add up over time thanks to compound interest. Don't try to time the market.
My parents told me the same thing and they were right. But everyone's situation is different. Run the numbers for your specific situation before making a decision. There are good calculators online that account for all the variables.
I made this exact mistake when I was younger and it cost me. Learn from others instead of learning the hard way. The personal finance section of any bookstore has dozens of books — they mostly say the same sensible things for a reason.
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