5 Tips For New Parents To Stay Out Of Debt

3/8/2013

5 Tips for New Parents to Stay Out of Debt

When you are raising a family it is extremely easy to get into debt. You now have to house more than just you and your significant other, therefore paying larger electrical, gas, and water bills, plus you have to start saving for your child's college fund. You want to make sure your family's needs are met without getting into debt, which can be tricky. However, by paying attention to small details such as putting away money each month, budgeting and looking into options such as structured annuity, you can ensure that your finances are being taken care of without breaking the bank. Below are a few ways to save money as a new parent:

Pay Attention to Details
As a new parent, you probably want to save as much money as possible to put towards the baby and begin planning a life for them. While things such as turning off lights to save money on electricity may not seem like much, it can save you a lot of money per month that could otherwise be going toward a college fund. Reduce your water bill by waiting to do laundry or dishes until you have a full load and use the heater and air conditioner only when necessary.
Check Your Bills
Take a good look at what current expenses you have and see where you can cut down. Do you really need that extra $20 worth of extra HBO channels? Think about areas in which you can afford to let go, particularly when saving on television.
Budget and Save
Once you have cut out unnecessary monthly bills and are paying better attention to necessities such as electric and water, it is important to figure out a monthly budget on things such as food and entertainment. See how much you can begin to put towards a college fund for your child.
Consider life insurance
Once you have a child, it's very important to consider the option of life insurance. Look into investment options that will help your family in the event of your passing.
Look into all your options
If you feel like you are still having trouble supporting your family, there are other various options to look into such as structured annuity. Keep in mind that you can sell some or even all of your structured annuity payments to get cash if you're in a crunch.

These are just a few tips for new parents to stay out of debt. By budgeting, saving on bills, paying attention to details and keeping your options open, you can successfully raise a family and stay out of debt.