Financial Advice for Stay-At-Home Moms to Repay Their Debts

Hey everyone! Today’s article is a guest post from Pat S. Thank you Pat for your contribution. Guest posts reflect the ideas, thoughts, and opinions of the originator and do not necessarily reflect those of TightFist Finance. If you would like to contribute a guest post, please contact us at editor@tightfistfinance.com.

 

After having a baby, most of the newbie moms want to stay at home. But, sometimes, they have to join the 9-5 once again as one income is not sufficient to keep their debts under control.

The newbie moms know that without financial stability, their debt problems can turn into a nightmare. They want to stay at home, but huge debt doesn’t let them. Thus, they leave the dream of staying-at-home with their baby.

Well, leaving the kids at home or at a daycare center can also be a nightmare for the moms.

Thus, the newbie moms who don’t want to join the workforce should search for the ways to repay their debts while staying-at-home.

This article can be a good read for the moms who are looking for ways to repay their debts.

Stay at home moms are often forced back into the workplace if they need to repay debt. These money saving tips are perfect for new mothers after birth!

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Financial Advice for Stay-At-Home Moms to Repay Their Debts

Avoid debts while planning for a baby

Plan earlier

Most of the newbie parents fall into debt just after having a baby. You have to be honest about the fact the baby doesn’t bring the debt. It is you who never had some solid financial plans to avoid debt while planning for a baby.

Thus, you should ask yourself whether or not you can afford to be at home with your baby on one income.

If you believe one income will not sufficient to manage all household costs and baby expenses, then you have to wait to save money before planning for a baby.

Once you are confident about your financial stability, you can welcome a baby in your family. So, planning ahead can easily help you to enjoy with your baby without thinking about the debt burden.

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Cut down unnecessary expenses

Though planning for a baby is a wonderful thing, yet it often comes with financial stress for the parents. If you’re an unprepared couple, this will hurt your personal finances and you may soon start accumulating debt. Having a baby need not always be a bank-breaking experience if you’re smart. When you plan to have a baby, stop purchasing unnecessary things and look for inexpensive ways to live.

Take the initiative to get out of your existing debts

Assess your financial situation

Before you join the 9-5 and leave your baby at daycare, you should give your financial health a checkup. You should figure out your total monthly income, expenses, and net worth.

If you see that your monthly income is greater than the monthly expenses, then you have a positive net worth.

You can use the excess money to repay your debts without joining a 9-5 workforce.

Follow a budget to figure out your net worth

You should create a budget to figure out your monthly income and expenses. Following a budget is a fantastic way to conquer all your money goals. It will help you to understand how much money you can save every month.

You can also understand whether or not your income is greater than your expenses. If you see that your monthly expenses are bigger than your income, then you have to cut down extra expenses or earn more. Otherwise, you will not be able to repay your existing debt and you may fall into more debt.

If budgeting is a scary task for you, start an online budgeting app to do the job on your behalf. You just need to revisit the budget and make the necessary changes.

Consolidate your bills

If you are unable to manage your multiple bills, then you can consolidate your bills into one payment every month. You just need to enroll with a bill consolidation company to seek their help in consolidating multiple bills. It is a great way to manage bills when you are highly busy with your baby.

Assess your debts to determine a solid debt repayment method

You need to assess your debts to know which debt repayment method will work best for you. If the total debt is huge that you can’t manage your own, then you have to seek professional debt relief help you get rid of the debts.

If you are in multiple credit card debts, then you can repay your debts on your own. You just need to follow a DIY debt repayment method to repay the debts.

Repay your debts by following the debt snowball method

If you don’t want to consider a professional debt relief option, then you can follow the debt snowball method to repay your debts.

In the debt snowball method, you need to arrange your debts from smaller to bigger amount. You need to make larger payments to the smaller debt while making minimum payments to the other debts.

Once the smaller debt is paid off, you need to target the next smallest debt on the list. Keep following this method until you repay all the debts.

However, to repay the debts you need to have money in hand. Thus, you should save money or earn extra money.

Below are some ways you can save money while staying-at-home

Ways  a stay-at-home mom can save money to repay debts

Save money on food

If you want to repay your existing debts, then you have to start saving money so that you can make bigger payments toward debts.

There are many ways to shop thrifty. Try to find out what works with your family as all kinds of tight living resources will not work for all families. Determine the needs, ability, and desires of your family so you know where to draw the line while you go out shopping for food.

Take advantage of coupons

When you’re a stay-at-home mom,  you shouldn’t take a step into the grocery stores without a coupon. The best way to lead a thrifty life without spending too much money on groceries is by making the best use of the coupons. In any family, the largest variable expense is food but it will no longer seem to be a big expense when you have coupons to help you. With coupons, you can get items even free of cost. Keep track of coupons through newspapers and through your mailbox.

Consider work from home option

You can avoid joining a 9-5 job by considering work from home option. Thus, you can earn some money to repay your debts without doing a full-time office job.

There are many online jobs available that you can manage from your home. Just fix a particular time when you don’t need to attend the baby and can smoothly complete the office work at your home.

Lastly, the cost of living in the US is increasing day by day and for all the moms who stay at home with their kids, every dollar counts. They simply can’t afford to fall in debt and then rush to professional debt relief companies resolve debt as this involves a huge amount of money, fees, and service charges. Thus, a new stay-at-home mom who is drowning in debt should start saving as much as possible so that they can repay their debts on their own. It will also help them to avoid debts while nurturing a baby.

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If you are looking for more ways to save money, consider signing up for our free course on budgeting and saving money. The course is full of ways to save more money! What would your family do with more money?