Once you become a parent, everything’s going to change, and one of the most significant things that are going to change is your expense. While raising a child is one of the most fulfilling experiences in your life, many people conveniently forget to mention the impact on your budget.
Even though most people naively assume that they need to buy and hoard everything for their child, it’s important to know when to draw the line. Here are a few budgeting tricks that can help first-time parents in the UAE
It may sound basic and obvious, but the very first thing that you need to know is to create a budget. Unfortunately, while it may sound like a very simple step, many new parents make the mistake of getting over-enthusiastic and create a budget that’s much too large.
If the parents decide not to make a budget, then it’s easy to overspend in an attempt to ensure that your baby has everything they need. The best way to create a budget is by remaining realistic and considering what your lifestyle is going to be!
Creating a budget doesn’t mean that you start cutting costs on everything. In fact, if you become too strict with your budgeting, you’re less likely to stick to the plan. The best way to move forward is to create a realistic budget with enough flexibility to ensure that you stick with it and don’t just give up.
There are plenty of online resources that you can use to look up prices and find out how much everything costs. Without doing the proper research, you won’t be able to create an effective budget. So, while you and your partner are waiting for the baby, it’s a good idea to slowly start researching everything.
Start with the essentials first. Then, once you have all the basics together, shift your focus towards everything else you need.
When budgeting, many parents make the mistake of including a lot of stuff that they don’t need. Sure, when you’re waiting for the baby and creating a wardrobe, it’s easy to get carried away. Of course, you only want what’s best for your child, so parents inevitably end up buying expensive clothes.
What happens with those clothes is that they barely get any use, and your baby will outgrow them. Babies grow up ridiculously fast, and a pro parenting tip is to buy clothes that provide growing room. You never know when your baby or toddler is going to go through a sudden growth spurt.
Make sure that you ask yourself does the baby needs this before adding anything to the budget or making any purchases. For example, ask yourself if your baby needs shoes that cost upwards of 100 AED when they aren’t even going to walk, and the shoes won’t fit after a few months.
It’s a good idea to look at the second-hand market as well. There’s no harm in buying something that you’re only going to use for a few months and then selling it off again!
If both you and your spouse are working jobs, and you can’t rely on family, then there’s no other option but to go for professional childcare. Unluckily, nursey fees in the UAE are pretty significant. So, when you and your partner are expecting, it’s a good idea to sit down and consider your options.
The expense of childcare is so significant that in certain cases, it might make sense for one partner to continue working while the other stays home to raise the child. However, if you’re choosing to go with childcare, then you need to make the necessary adjustments to your budget.
If you’re unsure how to cover the expenses, it’s a good idea to open a savings account and start contributing towards it slowly. Opening a savings account early will give it time to grow. That can be incredibly helpful for helping pay daycare costs once your child is ready for the nursery.
It’s smart financial decisions like these that can help you navigate the joys of having a child without worrying about the financial aspect too much.
New parents have to make a lot of buying decisions that they’ve never had to make before. As a result, many new parents don’t know what’s a reasonable price for certain items and what’s too high. However, there are plenty of different ways that you can avoid paying too much.
One of the most effective ways to stay within a budget and even manage to remain under budget is by shopping when there are deals and discounts! While you’re going to be waiting for your baby, there’s going to be at least one major sale, and that represents the perfect time to go shopping.
A lot of baby products and items go on sale pretty regularly, so if you do your research properly and look for the right deals, you might be able to buy almost everything at a discount. Unfortunately, many people don’t take advantage of all the deals and discounts that are potentially available to them.
Digital wallets like Payit provide their customers with plenty of deals on all sorts of consumer goods and services. On top of that, you can access all of the deals that are available to you in one convenient location.
One of the best ways to manage your budget while shopping for a baby is by buying in bulk. Through bulk buying, you’ll be able to make a lot of savings in the long run. A lot of people don’t buy into shopping in bulk because of the high initial cost. However, what they don’t realize is that they fail to see the bigger picture.
When you buy in bulk, don’t think about the high initial cost. Think about the per-unit price!
When cash is your predominant means of spending, it becomes a lot more difficult to manage finances. It’s harder to keep track of every transaction. If you truly want to manage your budget, a service like a digital wallet can help you make a lot of savings.
Not only does the service provide you with a more accurate means of tracking your spending, but you’ll also find deals on pretty much everything. When you take savings into consideration, every little bit matters.
If you and your partner are expats, then it’s likely that you have family back home. One of the most significant inconveniences expats face is sending money back home. If they use an exchange, it becomes a hassle due to the lines and extra fees.
While many banks offer the ability to transfer money back to your native country, they typically charge a fee as well. So, if you want to save money on transferring money, then payit is the best digital wallet that you can pick.
There are two main ways through which you can transfer funds through payit app. You can choose to directly transfer funds to the recipient’s bank account number, or you can use the MoneyGram service. Both services are available 24/7 and offer very competitive exchange rates.
If you want to save even more on fees, you can transfer money directly to another digital wallet anywhere around the world in an instant. It’s one of the fastest and most secure ways to transfer money!
While budgeting for a child, it’s important to remain realistic and consider your new lifestyle. A proper budget will let you enjoy your precious years with your baby without having to worry about finances.
You might have to skip out on buying designer shoes for your baby, but it’s nothing you can’t handle! Hopefully, these tips will help you create an effective budget and manage your finances better.