Job number one during maternity leave is making the most of the precious time we’re given to bond with baby before going back to work. But it’s also an opportunity for working parents to check some items off long-standing to-do lists.
I just returned from three wonderful months with baby number three. And while the baby rested, I nurtured the family’s financial plan.
First, I saved our family money by finally cutting the cord on cable and signing up for Netflix. Maternity leave is a great time to consider discretionary items in your budget. Will you really get your money’s worth from cable TV or a gym membership with a new addition in the household?
Our family used to have accounts scattered at several banks. To simplify life at a hectic time, I consolidated them with the online bank ING Direct. Its interest rate is lower (1.49 percent as of mid-July) than the 2.75 percent I could receive at a site such as SmartyPig.com, but I decided it was not worth the hassle to transfer them. Plus I’m used to ING’s website and satisfied with their customer service.
At a time when credit card companies are changing terms right and left, it pays to keep tabs on your cards. I reevaluated the rewards programs attached to my various credit cards and decided to make the Costco TrueEarnings American Express card our primary card after the perks associated with the Chase Freedom Visa card were reduced.
During quiet times, I logged onto Mint.com, a free online service that aggregates all of your credit card and bank account information in one user-friendly spot. The site allows you to categorize your spending and create a budget. Tracking your spending is an eye-opening exercise that I recommend to anyone. Who knew our family spent more than $300 at McDonald’s last year!
As I mentioned in a recent Star Tribune column, sometimes you have to spend money to save money. I cited the $200 chest freezer that’s already paid for itself because we’re eating out less. Then there’s the hundreds of dollars we spent on terrible strollers only to spend nearly $400 on a BOB Revolution stroller for the little guy.
I also reluctantly shelled out dinero for cartloads of storage containers to organize the contents of our home. Hey, it’s cheaper than buying a bigger abode.
A word of caution. Spending too much time in front of a computer with a credit card nearby can undo your found savings. I admit I made more than one unnecessary online purchase. Same with trips to the mall. It’s a perfect destination on hot days with a little one. And during this recession, when retailers are practically giving things away, it’s easy to justify those $5 onesies from the bargain bin at Gymboree. At times like these I try to remember that even bargains deplete bank accounts.
Finally, don’t be too hard on yourself if you don’t get everything done. I intended to reevaluate our IRA options, purchase more life insurance and revise our wills. At least the tasks have been added to the to-do list!
Kara McGuire is the Star Tribune’s personal finance columnist and mother of three. Follower her on Twitter at Twitter.com/kablog.
