How to Financially Plan for an Unexpected Baby

Whether it's your first "surprise" or an "oops" baby number 5, if you've found yourself unexpectedly pregnant, there are many things to start planning for. You may be kicking yourself for giving away those baby toys your other kids had outgrown or wondering if it's time for a bigger house before your new arrival.

Amongst all the things you need to plan and prepare for, your finances should be at the top. It's difficult to plan ahead when you didn't intend to become pregnant in the first place but once you find out about your expected bundle of joy, you can begin the financial planning process.

Here are some guidelines to kick start you on your journey:

Revisit your budget

If you don't have a budget yet, then now is the time to draw one up. If you have a budget, this is the time to revisit it and see where you may need to make some changes. Write down all of your bills and payments that you must pay each month as well as necessary expenses like gas and groceries. Then compare this to how much money you are bringing in each month in income to determine where your budget should be. Make changes as necessary to be sure you are bringing in more than you are spending.

Make that income stretch

Now is not the time for living at or beyond your means. This is a great time to make what income you have stretch as much as you can. Even if you bring in a very comfortable income, you don' t know what surprised might happen along the way before or after baby arrives.

Control your expenses

If you were already on a tight budget, then you may be used to keeping your spending in check. If you were a free spender, it might be a little more difficult to start this new habit but it will pay off in the long run. Your expenses are the one part of your finances that you have the most direct control over. When you're expecting a new baby, it seems there are a million things you "just gotta have" but before you open your wallet, determine if you really need it. Controlling your spending gives you a nest egg that will pay off for you and the new baby in the future.

Start saving early

It's never too early to start saving for the new baby. As soon as you find out the news, start putting something back into a separate savings account or fund that you won't be tempted to spend on the fly. Money that is left over from your monthly budget can be rolled into this savings and unexpected cash such as gifts, inheritance or lottery winnings can be put into savings as well.

I know what it's like to have an unexpected baby. The news of my number five was a shock to the entire family. We have recently moved into a new house, the kids were settled in their own new rooms and we were comfortable with six mouths to feed. Now that we know there is a new addition, we'll be planning ahead so when baby makes his (or her) arrival, we are better prepared and less stressed.