Found an interesting article on finances & parenthood in American Baby by Josh Garskof. Here are the tips that I got out of it.
1. Buy Life Insurance. Term Life makes the most sense because it coves the insured person for a period of time and pays a benefit if you pass away during the term.
2. Eliminate Credit Card Debt. Pay these off as fast as possible. The interest costs will be an ongoing drain on your budget.
3. Set up a Budget. I won't go into what they recommend because I just finished peeing in my pants (laughing). The jist was, "...add in the costs of your baby, which you can estimate at about $400 per month..." $400??? Right! On what planet. This won't even cover 2 weeks at daycare! Anyway, I do agree with the concept of setting up a budget! So, let's just leave this one alone.
4. Build a Financial Cushion. With debt under control and a budget in place, work on savings.
5. Start Saving for College. Look into the 529 accounts. These programs allow your college fund to grow tax-free. Every state has its own 529 program. Look for one that offers and age-based mutual fund that starts out with aggressive investments and gets more conservative as college gets closer. There are also a Prepaid tuition plans. This allows parents to beat tuition inflation by paying for college now. You pay today's tuition on a playment plan, and then your child goes to an in-state school.
OK. I am EXHAUSTED just thinking about all of this. :)
I guess I can add these to my list of things to do while waiting. Actually, I think my list is turning into somewhat of a book. One day, I am just going to delete it and fly by the seat of my pants. (yeah, right!)
1. Buy Life Insurance. Term Life makes the most sense because it coves the insured person for a period of time and pays a benefit if you pass away during the term.
2. Eliminate Credit Card Debt. Pay these off as fast as possible. The interest costs will be an ongoing drain on your budget.
3. Set up a Budget. I won't go into what they recommend because I just finished peeing in my pants (laughing). The jist was, "...add in the costs of your baby, which you can estimate at about $400 per month..." $400??? Right! On what planet. This won't even cover 2 weeks at daycare! Anyway, I do agree with the concept of setting up a budget! So, let's just leave this one alone.
4. Build a Financial Cushion. With debt under control and a budget in place, work on savings.
5. Start Saving for College. Look into the 529 accounts. These programs allow your college fund to grow tax-free. Every state has its own 529 program. Look for one that offers and age-based mutual fund that starts out with aggressive investments and gets more conservative as college gets closer. There are also a Prepaid tuition plans. This allows parents to beat tuition inflation by paying for college now. You pay today's tuition on a playment plan, and then your child goes to an in-state school.
OK. I am EXHAUSTED just thinking about all of this. :)
I guess I can add these to my list of things to do while waiting. Actually, I think my list is turning into somewhat of a book. One day, I am just going to delete it and fly by the seat of my pants. (yeah, right!)
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