Being mentally and physically prepared for another baby is one thing. But what about being financially ready for it? For you to conceive another baby, you must consider a lot of things before having another baby. In the world we live in today, nothing seems as easy anymore especially when it comes to our financial state.
We have much more responsibility to take care of, to the point some of us would rather work extra hours just to earn extra income. Hence before we try to conceive another baby, we must think of all the whats, whys, hows, and when questions. How to know whether you are financially ready for another baby or otherwise?
Are You Financially Ready For Another Baby?
Discuss It
To our concern, having a baby changes everything significantly – from sleep schedules, priorities and social life, to financial status and the relationship with our spouse. If you are the type who keeps your finances separate and doesn’t talk about it even after having a baby, you should be discussing it now. You should be able to plan ahead. Discussing the financial status with your partner will help you both decide better and making things easier.
It is best if you could settle up any bills or debts. It could lessen each other burden in the future when you have another child.
Other than that, you have to roughly plan up the budget for the baby. List out everything such as their necessities and see what are the things that you really need. Aside from that, you can consider babysitting your own baby instead of sending him/her to the nanny.
One important thing to keep in mind is, make sure you have savings for your living expenses for at least three to six months in case anything unexpected happens.
Do Some Research And Start Calculating
Before planning to conceive, lookup for pregnancy and paediatric costs associated with your health insurance plans. If you didn’t sign up for any medical insurance, you should consider doing so. Sign up for women’s insurance plan that covers all pregnancy expenses. You may also get tax relief from the premium that you paid for. Opt for delivery and vaccinations at government hospitals, if possible.
Having another kid can significantly increase your expenses. It may be overwhelmed for you at first. So, for the first few months track your spending to ensure that you did not spend on anything that you are not supposed to. There is some baby care equipment that you can use from your first kid such as the crib, car seat, highchair, stroller and more.
Before your kids start going to school it is best if you could sign up for education insurance for your kids future schooling expenses. The plan should also cover medical expenses which include hospitalisation. You or your spouse is entitled of tax relief for your child’s education and medical insurance premium.
Tax relief Entitlements
Familiarise yourself with tax relief entitlements to having a child. The national education from PTPTN Skim Simpanan Pendidikan Nasional offers you additional tax relief which comes with conditional free insurance coverage. You may check the latest tax relief entitlements at Lembaga Hasil Dalam Negeri (The Board of Inland Revenue) official website at the official website.
Here you go! What are your thoughts on the tips? Having and caring for your kids is a lifelong commitment that you really have to be ready more than physical and mental but financially as well. You may go through hardship but those hardships are worthwhile in teaching the sacrifices and unconditional love you have for your kids in giving them the best they deserve.
Stay tuned for more write up on our blog. While you are at it, don’t forget to check out Motherhood.com.my for your baby needs.