While the decision to have a child goes beyond looking at numbers and funds, knowing how you stand financially can help you decide if the time is right to try for another baby.

Here are some things to think about:

1. What’s your budget?

It’s expensive raising a child. Besides the daily and basic expenses, you’ll need to look at healthcare, schooling, and the kind of life you’d like to provide.

When you add a second baby into the picture, your budget needs to expand considerably. Doctor’s fees when you get pregnant, hospital fees when you give birth, vaccination for your baby’s first year all add up. 

While you can reuse your older child’s clothes and baby paraphernalia, especially if they’re close in age, you’ll need to take a good look at how a new family member will affect your resources.

2. Will you be able to adjust your health plans, insurance plans, and employee benefits?

You will need all the support you can get if you decide to have another baby. Talk to your employer about parental leaves and other benefits you’d like to explore. Find out if your health card and Philhealth payment can really help with your expenses. Do you need to change your insurance plans to get better value? Consult with your advisors so you have a clearer picture of what the future may look like with a growing family so you can make the necessary adjustments.

3. What’s the state of your savings?

Typically, you’ll already have an emergency fund set aside that covers about six months to one year’s worth of expenses. If you have a new child on the way, will you need to adjust that amount? Will you need to forego some luxuries?

At the same time, will having another baby need you to spend for a bigger place or a bigger vehicle? Do you have enough for a downpayment to provide for a growing family?

4. Is your investment portfolio or education plan adequate?

It may be decades from now, but knowing that you have enough to fund your children’s education will give you peace of mind. Whether you have purchased an educational plan or chose to invest your kids’ financial assets in an investment fund, consult with your advisor, let him know your financial goals, and make necessary adjustments.

5. Do you have a retirement plan?

Planning ahead for your family includes having enough to enjoy life later on. Another child in the picture may eat into your savings plan, so you may need to change your strategy. At the very least, find a way to stick to retirement plan and instead seek out ways to fund this potentially new dynamic.

While a new baby will seriously affect your finances, the decision to have one should boil down to the kind of family and life you want. Knowing the state of your finances should motivate you, not prohibit you, to fulfill that dream of living your best life.

SOURCE:

5 Ways To Prepare Your Finances for the Next Baby

http://time.com/money/4001953/family-budget-another-baby/