Can you afford to have a baby?

There's no question, having a baby is an expensive business but are your finances ready? Here's a checklist to help you decide.

How stable is your income?

Do you and/or your partner have a regular, steady income? As your costs are about to go up, you`ll need the reassurance of knowing how much is coming in every month.

Can you cut back your outgoings?

Pregnancy is a great opportunity to get your finances in order. You probably won't be socialising as much, so you should be able to make plenty of savings over the next nine months. Start cutting back on luxuries and put your money into a baby fund instead.

Can you afford the basics for your baby?

It could cost anything from £500-£700 to buy the basic items such as a cot, a travel system and clothes for the first few weeks. But you can spend far more. If you bought say, a designer buggy, the entire budget could be blown on that one item alone.

Will you be a stay-at-home mum or a working-mum?

You'll need to decide whether you're going back to work or staying at home full-time. For many of us, returning to work will be unavoidable. If you're lucky, you may have a parent close by who is willing to help out while you work.

Otherwise, you'll need to budget for childcare costs which depends on where you live, how old your child is (childcare for babies is usually more expensive), whether you qualify for state benefits, and any benefits provided by your employer such as childcare vouchers.

Can you work from home?

This won't work for everybody but if you have the right kind of job, can you negotiate working from home with your employer? That way, you may be able to keep your earnings up but your childcare costs down. That said, don't forget babies can be very demanding and it may be too difficult to juggle both. 

Can you reduce the cost of having a baby?

Presents for your newborn will help with the initial costs. Borrow wherever you can and be grateful for hand-me-downs! Hunt around for baby bargains on eBay or borrow an American idea and organise a baby shower where generous friends and family will `shower' you with gifts before your baby arrives!

You could volunteer to babysit for friends and they'll do the same in return for you. There really are lots of ways you can save money.