Finances are probably on your mind if you have a baby on the way, or if you’re a new parent. We all know having kids can be expensive and can cause financial stress for parents. Between buying diapers, baby wipes, formula (if the baby isn’t breastfed), baby food when they’re ready, toys, clothes, the list goes on and on, it all starts to add up. Luckily, with a little discipline, these new expenses can be fit into the tightest of budgets. This page is not about finances and investments but making smart money moves is a key part of being a father! So… here’s some tips to help you out!
- Make a Budget & Stick to It!
This is finances 101, you may already have a budget and if you do, you’re ahead of the game. Be sure to factor in your new expenses. If you don’t have a budget, make one! I don’t really care if you use one of the budgeting apps, an excel spreadsheet, or a handwritten note on a bar napkin, just build a damn budget and learn to use it! I personally use Mint by Intuit as a personal finance tool and love the ease of use and features it has.
- Plan for the Unexpected
Life happens and we can’t control it. As parents we know this more than anyone. One of the best pieces of advice I can give to parent’s is to have an emergency fund, and purchase life insurance. We live in a crazy world today and you never know what will happen. You could be like so many others in 2020-2021 and be laid off from work due to the pandemic, leaving you without income to support your family. If you have started an emergency fund, then at least you will still be able to pay your bills and keep your family fed. I am of the mindset that you should work towards having an emergency fund that will cover your expenses for at least 6 months. That way if the unthinkable happens, you’ll still be ok. It’s not going to happen overnight, it takes discipline to save that kind of money (this is where that budget will help you), but start building your emergency fund, baby steps are better than no steps. Also, if the absolute worst happens and you’re no longer around to help support your family what will happen to them? This is where life insurance comes in, we all want the best for our children, and your life insurance policy can still help support your family after you’re gone.
- Build Smart Spending Habits
This may seem obvious when we are discussing finances as a father, but if you actually look at your spending you may be surprised where all your money goes. That $6 iced mochafrapabullsh*t you buy every morning on the way to work will really start to add up. Try making coffee at home. Me and my wife are still guilty of this sometimes. We do make coffee at home basically every morning but it’s still tempting to run through Starbucks or Dunkin’ and get a coffee if we are out running errands. We recently upgraded to a coffee maker with a timer, this has been amazing, I can set it up the night before and when I wake up, I have fresh hot coffee waiting on me. This is the one we use, click the link to check it out:
Another smart way to control your spending is to buy store brand products and buy groceries in bulk. We all know you’re going to be using a lot of diapers and wipes, so why not buy the bulk sizes and save a little money, even better if you can find a store brand that you like. If you are in the south and have a Publix nearby check them out, we love their diapers and wipes and the savings really start to add up!
- Don’t Forget your Savings and Investments!
I am not a financial advisor by any means so how you chose to invest your money is your decision, but don’t let a new child derail your financial goals. When I first became a father, I started regularly setting aside a portion of my income and investing it into the stock market, and I force myself not to touch the money. If investing in stocks interest you check out Robinhood, you can download the app on your phone and it’s stupid simple to get started. If you want to give it a try click the link below, plus if you use my affiliate link we both get a free stock, we both win!
https://join.robinhood.com/mikec372
There is a ton a great content out there to help you learn how to make smart financial decisions as a father. Two books that really helped convince me to start investing in myself (and more importantly my family) is Rich Dad Poor Dad:
And Richest Man in Babylon:
These books really stress the importance of paying yourself first and having your money work for you, which in turn allows you to better provide for your family. I strongly recommend reading them when you get time, click the links above to check them out. How you decide to invest is up to you, but don’t stop investing in your family’s future just because you have a child. If anything, it’s more important now than ever.
- Research Prepaid College Programs
As parent’s we want the absolute best for our children. Whether that be going to a traditional college, a trade school, or taking part time classes after high school and starting their own business. You never know, maybe your kid will be the next Elon Musk. Most states have some sort of prepaid college program that allows you to start saving for your child’s education now. After high school, education is expensive regardless of which route they take, why not get a head start and spread out the cost over several years!
I want to reiterate that I am NOT a financial advisor, but I do want us all to succeed together in this adventure we call parenting. If you start implementing these smart money tips, like I have, it can help with the financial stress of being a new parent. I promise it will be worth it.
-That’s Just Dad Shit