How to Manage the Cost of Having a Baby

Life is a journey that is filled with twists and turns. Having a child can provide you with more than your share of these. You will consider many different factors when you think about having a kid, most of them will be personal, about your time, availability and temperament for parenthood. One of the last things you factor in is often the financial impact that bouncing new baby will have on your life and your relationship. That is how it was for me and I wanted to share some of the ways I have managed to handle the cost of having a baby. Hopefully you will be better prepared than I was for reading this. At the very least it should provoke discussion between couples, so that there is a better understanding of the burden that is headed your way. 

Don’t Go Overboard With a Room For Baby
So you have made the decision or the decision was made for you, that you are having a baby. Now there is obviously going to be a period of time, while the baby develops, for you to plan out everything you need to do to prepare for the arrival of your son or daughter. Many couples decide that they need to build a full fledged baby room. Often times this comes in the form of remodeling a current room into a baby nook. Many times parents can get carried away with this sort of thing. Of course you want your child to have a happy environment to exist in, that has been made safe for them. You don’t need to construct a whole new room. The costs of construction can quickly get out of control if you aren’t careful. 

Prepare for Hidden Costs of Kids
You are probably aware that soon, you will be adding diapers and other baby related products to your weekly budget, but you had better realize that your regular household utility bills are going to be going up and they probably won’t come back down until your kid heads off to college. Your electric bill will rise because of the increased electrical demand. Another increase will be in food. At first there may be very little increase, because you have decided to breast feed your child. Eventually, your child is going to be weaned off of this form of nutrition and they are going to be looking for other sources of nourishment. The cost of feeding your family can be significant. There are a few simple things you can do to cut down on those bills. The first thing is to switch to generic brands for most things. You can save up to fifty percent on many items, that are just the same. Another way to save money is to become an active coupon user. You will not have to devote your life to it, to see some significant savings, and to become more aware of what is on sale and where your food budget is being spent. 

Daycare A Necessary Evil
Before I had kids I never understood this aspect of childcare completely. You pay this fee every week. Even if you find the most reasonable daycare in the world, this expense is going to be costly. Depending on where you are located geographically this price will vary. In my state the average is approximately one hundred and fifty dollars a week. That is about five hundred dollars a month so that you know your child is in good hands. That is $7800 a year that you are shelling out in childcare. That is per kid. It is no wonder that more and more families are choosing to have one person either work from home or not work at all to take care of the kids and save in daycare costs. This is at least a subject that should be breached as you prepare for the wonders of parenthood.

Plan Financially
Having kids you’re just going to have to accept the fact that there will be costs that you haven’t thought about. One of them is going to be healthcare for your child. Even if you have complete insurance there are going to be co-pays every time your child goes to the doctor, needs a prescription, or god forbid, something worse happens that requires continual care like diabetes. It is a wise move to think about starting a Health Savings Account at your bank or credit union. An HSA will allow you to put aside funds to help pay for medical treatment. It is better than a regular savings account because you are allowed to contribute money to it, tax free. That in and of itself will allow you to save money, but you will have the added peace of mind that your child’s illness won’t destroy your weekly budget. 

About the Author: This is a guest Post From Theresa Moyer. Theresa writes and makes diaper cakes for ediapercakes.com.

Money Saving Tips for Commuters

Daily travel costs lots of money. Taking some precautions and intelligent move would cut to this costs to a great extend. One of the complaint from middle class family members is the growing cost of daily travel that affect their family budget badly. Here are some practical tips to save money on your daily travel.

1. Public Transport – Take the public transport method for up and down daily travels. This would be highly efficient if the office timings are in peak hour. Such options would avoid the requirements of taking your vehicles everyday and stay in the traffic for long time. Getting monthly pass for public transport would add spice to your money saving idea.

2. Your Behavior in Traffic – Generally drivers are reluctant to off the vehicle if they are in the traffic. Just behave opposite to that. If you are in the traffic or signal, it is best to switch off the engine. This would be helpful to save lots of money at the end of each year.

3. Health Walk and Cycling – Using cycles are the growing tend in the East Asian countries where the car production is more. This would be helpful to tackle traffic, maintain good health through regular exercise and of course, helpful to save lots of money on fuels. It is advisable to people, especially young people to take the route of cycles to office and back everyday. Heart patients pardon.

4. Car pooling – Car pooling is an excellent methods to save money and time. If you have colleagues in your area car pooling is an excellent option for daily travel in comparatively less cost. One of the major advantage is, everyone being the part of carpooling can be benefited from less fuel costs.

5. Prefer vehicles with high fuel efficiency – When selecting your car or other vehicles that uses daily, always pick a vehicle using your brain than heart. High fuel efficient vehicles would cost little more but helpful to save money when uses long time. Prefer to have such vehicles.

6. Option over vehicles – If you still don’t want to use any of the above points, this would help you. Prefer to have two wheeler than 4 wheeler to commute daily. 2 wheelers have more mileage and less maintenance cost compare with 4 wheelers. This point is especially best for youth and students.

7. Maintain your vehicle efficiently – Proper vehicle maintenance plays major role to save money in fuel. Create a check list of daily, weekly, monthly, quarterly, half and yearly maintenance of your vehicle/s and stick on that. Get the help from car company or trusted mechanic to prepare the list. They can better advice you on the requirements to met.

8. Know your routes and sub-routes – It is a good idea for daily drivers to understand the area well than just the route from home to office and back. Having good knowledge on the short cuts would help to save lots of time and money as well as fuel costs.

9. Maintain vehicle speed always – Always drive the vehicle in a speed that ensures high gas efficiency. Be a steady and slow driver. Aggressive driving and each action while such driving like speeding, sudden acceleration, breaking all could lower the gas mileage and decrease the engine functionality to a great extend.

10. More over all, have a right mindset to achieve your goal. such goal should be achieve through practice and that should not hurt your comfort, facilities or make any further burdens. Be a good citizen, good employee and good family member always.

10 Ways to Save Money on Your Taxes

1. Update Your Boiler
There are lots of tax incentives for people who want to try to live a bit more environmentally friendly, one way to save on taxes is to update your old boiler for a more efficient one. Not only will this save you money on your heating bills, you’ll get a tax break for it too.

2. Get a Low Emission Car
There are tax incentives for owners of vehicles with lower carbon emissions. For example, cars with CO2 emissions of less than 160g/km qualifies for 20% capital allowances in the main rate pool, meaning you could stand to save quite a lot.

3. Improve Your Insulation
If you want to reduce your taxes and your house bills then you should seriously think about improving your insulation – the government will even give you a tax free allowance to help you do it. Once your new insulation is up you should see your heating and electricity bills fall.

4. Charity Work
Charity work doesn’t have to mean standing outside in the rain with a collections box, it can mean giving money to charities for the sole purpose of saving yourself money on taxes too! Charitable donations are tax deductible but you have to make sure you itemize your good work.

5. Sort out Your Inheritance Tax
It is important to make sure your fiscal affairs are water tight – especially when you’ve gone. So writing up a will stating exactly where you want your money to go is vital. There are also various ways you can try to reduce the impact of inheritance tax. These include the ‘7 year rule’, ‘deeds of variation’ and setting up a life insurance policy to meet the cost of your tax bill after your death.

6. Earn Less
It may sound stupid, but you could actually be better off by earning less money. You have a personal allowance of £5,225 below which you cannot be taxed, the closer you can stay to this the better. You should make sure you’re taking advantage of company car schemes and looking into other non-monetary forms of remuneration.

7. Make Your Pension Work for You
One of the best ways to save money on your tax is to get your pension working for you. Remember: it is not only contributions to your pension that are tax free but the growth of assets in the fund too.

8. Claim all Your Entitlements
There are a lot of entitlements that you may be able to claim, the trouble is wading through all the small print to find out which tax returns you may be able to get. The big three to watch out for are Child Tax Credit, Working Tax Credit and Pension Credit.

9 Arrange Your Savings
Until around 15 years ago, married couples were taxed together – a wife would simply have her earnings attached to her husband’s. This archaic law has now been changed, which brings with it tax advantages. Now, you can put both your savings into one account under the name of the person who earns the least, which can prove a great way to save on tax.

10. Talk to Experts
The tax laws in the UK are very complicated and can be confusing and infuriating, however, HMRC know their rightsto save money, so it’s vital you know yours. If you’re not sure how to get the best tax deal for you, then it can help to get expert advice from solicitors like Irwin Mitchell. Experts have the experience and know how to deal with your tax requirements in the way that most benefits you.

Sources:

http://www.telegraph.co.uk/finance/personalfinance/4676654/The-tax-guru-Ways-to-save-on-tax.htmlhttp://www.buyassociation.co.uk/money/five-ways-to-save-tax.htmlhttp://www.hmrc.gov.uk/cars/rule-changes.htmhttp://news.bbc.co.uk/2/hi/business/6213762.stm

Author bioThis is an article written by Adrija Dey