Become Financially Firm for your New Baby

Many Australian’s have enough issues getting by each day living single or as a couple. With the average cost of raising a child in Australia from birth to 18 sitting around $250,000, the last thing some need is a baby to take a new dent out of their precious income. Whether it’s planned or out of the blue, some of the following strategies and ideas will aid you in staying financially firm for your newborn.

Is your Insurance Still Competent?

Your health insurance may not automatically cover your baby – even if it does, it may not be very quality cover. You should:

• Update your status with your current insurance provider for maternity coverage.
• If your current insurance is not competent, find new private health insurance which offers better support.
• Strongly consider the notion of life insurance – your partner, relatives or close friends may be willing to take the responsibility of raising your child, although they may not have the funds to manage a child. With life insurance in the worst case scenario, they will at least have some sort of financially stability.

Re-withdrawal Options

While it can prolong your debts and interest repayments, desperate times call for desperate measures – whether it’s your mortgage, personal loan or other form of finance, make sure at least one of your non revolving accounts has a redrawal option. This will allow you to withdraw one of your recent payments should you be in the case of an emergency.

Constantly Hunt for Baby Bonuses

While most government grants are practically unavoidable, make sure you’ve exhausted every ‘free’ financial revenue from your newborn. Search online or via Centrelink for places, institutions and information outlets which grant maternity discounts and bonuses.

Juggle Debts

Assuming you have a good credit score, it’s possible to shuffle your debt around constantly in order to prolong 0% interest. Simply undertake a 0% for 6 month balance transfer offer, and when the offer expires, simply apply for a new credit card and transfer your balance over.

Sounds too good to be true? While the concept is very plausible and used by many Australians, there are 2 catches:

• Each new credit card you apply for will have an annual fee you need to pay upfront for (which will range from $45-$70 on most 0% balance transfer cards).
• Constantly moving debt around can cause an effect on your credit rating – read more about the concept of debt percentage here.

Adapt a Frugal Attitude for Furniture and Toys

While baby shopping can certainly be exciting, it’s no doubt expensive. Instead of paying retail price on baby products, check your local classifieds and with friends or neighbors who may have old equipment. Ebay and other online auctions frequently offer lower prices on new and used baby items as well.

Simply put, for the majority of us, there’s no easy solution for funding a new member of the family. You’ll need to:

• Combine your superannuation accounts into one singular account if possible to avoid multi-tasking and paying multiple account maintenance fees.
• Start living below your prior leisure costs – sacrifice going out, restaurants and any other expensive outings/hobbies you may have enjoyed.

We wish you the best for you and your new miracle!

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%