Simple Budgeting Tips When You’re Expecting a New Baby
Everything changes when you have a newborn, and your budget is no exception. With Simple, you can plan your baby budget, keep track of your spending, and more—all in your bank account. Here are five tips to make budgeting for your new baby a breeze:
1. Plan Your Baby Budget with Goals
Using Simple's Goals feature, you can create digital envelopes to set aside money for your baby purchases within your checking account.
2. Use Safe-to-Spend to Keep Your Spending in Check
A new baby can be expensive. It's hard to know where to stop when there are endless baby supplies out there, like baby toys, baby books, and educational baby videos. Plus, they'll be growing out of their clothes until they're teenagers!
Safe-to-Spend shows you how much you can ‘safely’ spend without breaking your budget. It’s easy! Just create Goals for your recurring expenses—rent or mortgage, bills, food, baby things, etc—as well as for your savings and emergency fund. The money you have leftover is your Safe-to-Spend. By keeping all your basics in Goals, you can quickly glance at your Safe-to-Spend and know it's okay to splurge on that cute outfit—for you or the baby!
3. Set it Aside Now or Save Automatically Over Time
If you have enough money for a specific baby-related expense in your account now but you don’t expect to spend the money until after the baby arrives, choose "Save now" to instantly set that money aside in a digital envelope. Once it’s there, we’ll subtract it from your Safe-to-Spend so you don’t accidentally spend it.
If you need to save up, choose "Save until a date" and pick a date in the future. With "Save until a date", your Simple account will move a small amount of money into your Goal every day until you've saved up enough to reach the Goal amount. It's like saving without even trying.
4. Reallocate Your Spending with Reports
With a new baby on the way, you may need to reallocate spending towards baby supplies. Unless you have more money coming in, that means cutting costs elsewhere in your budget. With Reports, you can see your past spending habits and see where you could cut spending.
5. Planning Your Baby Budget for the Future
Reports can also help you estimate spending for the future. For instance, after a few months, you'll be able to see how much diapers, formula, and clothes cost each month, which can help you plan your budget for future months.