The Good: In Canada, we are lucky enough to be able to take up to 52 weeks off for maternity leave.
The Bad: Many people do not receive a full paycheque during leave, although some companies do offer additional top-up pay.
It's sort of a scary thought....more expenses and less income! How are you going to manage?
"be smart and make a budget that balances!"
One of my favourite shows is 'Till Debt Do Us Part. Sadly, I get really excited when there is an episode on that I have never seen before. I have been using
Gail Vaz-Oxlade's budget for awhile now. I am baffled by the number of people that spend far more money then they make and then look stunned when they are thousands of dollars in debt. I remember one episode where a couple failed to do a maternity budget before their baby was born. They were spending over 90% of their income on housing and transportation!
Budget Breakdown
(how it should break down according to Gail)
- Housing - 35% (mortgage, utilities, house insurance, etc.)
- Transportation - 15% (car payment, car insurance, gas, repairs, etc.)
- Life - 25% (cell phone, internet, groceries, personal care, entertainment, etc.)
- Debt - 15%
- Savings - 10% (includes emergency fund)
Baby supplies fit into the "Life" category. Try to estimate how much you will spend a month on diapers, wipes, clothes, etc. Utility costs will also increase since you will most likely be home more, using more water, etc. Entertainment and meal expenses will most likely decrease.
BD (baby daddy) and I have started our maternity leave budget. Fortunately we are well under the percentages for each category. This certainly doesn't mean we will be living it up while I am on maternity leave though. I may have to think twice about buying that new book from Chapters or buying a dozen apple fritters at the farmers market.
It is very important to us to live within our means, regardless of being on a reduced income. Too many people think they need a big house and a fancy car. I am also not sure why the minute a couple has a baby, they decide their sedan isn't adequate and they have to upgrade to a gas guzzling SUV (don't even get me started on that topic).
You might also consider eliminating some expenses that aren't necessary. That 4 dollar caramel macchiato that you get every day from Starbucks might just not be happening for awhile.
Be smart and make a budget that balances!