When a newborn is on the way, it is crucial that you have done all financial planning. As soon as you come to know that you are pregnant, the countdown to maternity leave starts. When you are expecting, you cannot afford to take stress in any form. Financial stress is one of the most significant types that you are vulnerable to during your maternity leave.
Maternity leave period generally expands up to 42 weeks out of which 26 weeks are paid. However, no employer is legally bound to pay for maternity leave. Your employer may also refuse to pay for leaves. In this scenario, it might be hard to stay afloat if you have not financially prepared yourself. Here is what you preparations you need to do before going on maternity.
Talk to your HR
First off, you should go to the HR department and ask about maternity leave policy. If the HR policy does not include this clause, your HR will straightaway deny, but sometimes employer does not mind paying for maternity leave.
Do not forget to ask if it includes health insurance, vaccination, and the like. Confirm that how many weeks are paid. Knowing the answers to all these questions beforehand will help you financially prepare while your baby is on the way.
Make a budget
Whether your employer is ready to fund your maternity leave or not, you will have to create a budget. Even if your employer has the policy to pay for maternity leave, they are not going to cover all expenses. This is why it is crucial to start budgeting as soon as you conceive.
Most of the people stash away on estimates rather than doing a mathematical calculation. Add up all income to know how much money is coming in every month and then deduct every tiny expense you are paying out of your pocket.
Even if the figure is positive, do not sit back. Apart from the money left, you can pull some money from each area of your expense. You will need a lot of money after your baby comes, so try to live off a lean budget. Just spend on essential expenses.
Your budget will also cover most of your health expenses. So do not forget to check your healthcare cover. Make sure that you know what it includes and what it does not to avoid unpleasant surprises at the end.
Take stock of your spending
Budgeting will not serve you unless you stick to it. You will have to keep tabs on your spending. You should know where your money goes and how much. If you do not have a clear idea of money you are spending, you will run out of money sooner rather than later.
A rule of thumb says that you should track your expenses weekly or bi-weekly. This is because it will prevent you from overspending.
Manage debt smartly
If you have taken on debt, make sure that you settle them on time. Otherwise, you will end up paying much more in interest and it will put hurdle in meeting your expenses at the end of month. If you have a credit card, make sure that you do not use it for a while. If you use it, try to pay the bill in time.
Timely payments will not pull your credit score and can help you take out a loan at affordable interest rates down the loan. It is crucial to be free from debt during this time because you may need to borrow money just before when your baby is due and after the birth of your child.
Now you do not need to type into the search bar where to get a loan in Ireland with bad credit, because some reputed direct lenders offer these loans at affordable interest rates. You need to go to the lender’s website and fill in the application. You will get the approval within minutes and the same day you will get money in your bank account.
Financial preparations for maternity leave are extremely crucial. As you get to know about your pregnancy, you should immediately start budgeting, track your expenses and handle your debt smartly.