Having a new baby is an exciting time.

There are names to choose, bonding time, and watching your baby grow and explore the world.

Universally, one of the main concerns that all new parents have is money. Even if you have set aside a lot to help pay for your baby, chances are that you will likely still be looking for the best options to keep some pennies in the bank, which is hard with a new baby.

So, to help you out, here are some effective tips to help you build a nest egg.

Identify Expenses

Many people have this figured out, but expenses can spiral when a new baby is on the scene.

To help you budget effectively, it is worth checking your phone, electricity, gas, water, and other expenses and assessing their average costs per month. For phones and car rentals, there may be fixed tariffs, which will help you identify the exact cost.

If you aren’t sure how much you spend on devices, you can use an energy cost calculator to help ascertain your monthly spending per device. When you have all of these figures written down, you can better budget for them, preventing surprises when the electric bill comes through!

Prioritize Your Spending

Yes, your newborn daughter will look amazing in that pink hand-knitted cardigan you found online, but does she need it?

Babies grow quickly, and buying luxury clothing items should not be the core priority of any new moms and dads. Aim to differentiate between needs and wants. It may also be helpful to try out the 50/30/20 rule, which allows you to spend 50 percent of your income on needs, such as housing costs, bills, and the baby, 30 percent on fun things, like takeaways and a new shoe rack, and 20 percent on paying off debts or putting into savings. You could even have a 10-10 split here, which is the best way to save money, even if things are tight.

Nappies

For new parents, a core part of having a new baby is having to change their nappy.

It seems easier to opt for disposable nappies, but depending on the brand you choose, these can cost you around $24 a month. That’s a lot if you are trying to use a budget planner!

Why not try reusable nappies? On average, the cost difference is around $600 per year between reusable nappies and disposable ones. It’s more cost-effective, and it saves the planet at the same time!

Local Parenting Groups

How do local parenting groups help you to save money?

In these groups, you will likely have access to people with babies of all ages, who may have outgrown some clothes, which can then be passed on to you, as well as other items, such as car seats and Moses baskets. Best of all, these exchanges are free and usually friendly, and when your baby outgrows their clothes or car seat, you can pass it on to a new parent at these groups, keeping such items out of landfills.

Parenting groups can also point you in the direction of cheaper clothing options, as well as food vouchers, and even advise on raising your new baby. What’s not to like?