How to Budget for Maternity Leave

Are you planning to have a baby in the near future? Maybe you just learned you are pregnant, and are trying to decide how to save money so you can stay home with the baby for a couple months. The first step is to find out how much you need saved. The second is to make a plan you can live with to achieve that amount.

The first step to budgeting for maternity leave is deciding how much to save. You will need to sit down with your bills and add up everything you spend in a month, including gas and grocery expenses. Most states allow at least twelve weeks of family leave before the employer may change your employment status. If you want to take more than twelve weeks off, ask your employer what the company policy is. Understand exactly what your company allows so you don't find your job in jeopardy when you try to return to work.

Once you have figured out your total monthly expenses, multiply it by the number of months you expect to take off of work. Remember that babies are expensive. Expect to buy diapers and wipes, and if you choose to bottle feed, you will need formula and bottles. Some women are unable to breastfeed, even when they planned on doing so. Even if you plan to breastfeed, allow some savings for the costs of formula. If you don't need it after your leave is over, you can add it to your emergency savings or to a vacation fund! Add a reasonable amount to the usual monthly expenses for these products.

For example, if your monthly expenses are $1500 and you can expect to spend up to $200 in supplies for baby each month then you would add these to get $1700. If you plan on taking the twelve weeks normally allowed, you would triple this amount to $5100. I use total household amounts because often fathers will want to take some time off work.

Now that you know how much to save, you have to find the method of saving that will work for you. If you are already pregnant you have up to seven or eight months to save the amount you need to budget for maternity leave. Using our example above $5100 (total needed) divided by eight months (amount of time) is about $638 a month. If you are paid twice a month, that is $319 every two weeks. Think you can't save that much?

There are a few ways to save money towards a goal. My personal favorite is to set aside a specific amount each time I'm paid. This ensures that I won't have that money available to spend. Where you set aside that money depends on you. I know that I have the willpower to put in it an envelope in a drawer and not use it. You may wish to open a savings account in a credit union where you don't already have a checking account. This really limits your temptation to use the money, since it requires a special trip. It is slightly less convenient to deposit the money, so make sure you can stick with it. If the father is in the picture, make sure he also adds to the savings!

Another way is to eliminate expenses that are unnecessary. If you usually spend four dollars for a coffee every day, see if you can make coffee at home instead. You can look up recipes for homemade mochas or try adding a hot chocolate pack to your coffee if that's what you like! If you drive to the store twice a week, try to limit yourself to once a week, or walk to a nearby store. Only buy groceries that you need, and try to avoid eating out too often. Some jobs may be able to offer extra hours, or getting an extra part time job may be the only option for extra income.

If you make monthly payments on a loan, such as car payments, try to refinance. Not only will you be able to save more for maternity leave, but you'll have less to budget for! If you aren't making car payments, can you adjust your auto insurance rate?

Every time you save a dollar, put it away. If you don't know where all the money is going, keep a journal! Anytime you spend money, even pocket change, record it. You may be surprised how much you spend on things you don't need. You can also use a journal to record how much you save. Seeing your budget for maternity leave on paper can help you feel good about your goals. If you are paying bills and finding yourself without any money left, see which bills you can eliminate!

The most important thing to budgeting for maternity leave is to have a plan! Whether you follow my plan or come up with your own, hold yourself to it! Remember, that new baby will need you more than it needs any fancy toys or extra furniture!