How to Manage Finances While on Maternity Leave

Pregnancy requires a lot of adjustment not just for the one who’s carrying the baby but for the whole family as well. It could be a roller coaster ride, especially if it’s the first time for the family. Planning and preparing ahead is the key to making situation as manageable as possible. It may also be a planned or unexpected pregnancy.

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1. It starts with making a budget based on the family’s income, about the compensation or lack thereof during maternity leave. Starting with the income and expenses, the expecting family needs to track down their income sources and where their money goes. The details of the income and expenses may be put in a budget planner, adding the possible additional expenses in the next nine months onwards for visits to the doctor, maintenance, supplements, change in diet, etc. The family may also be entitled to some government benefits which can be added to the source of income of the family.

2. Knowing your financial situation and having a concrete plan can make a difference between easy pregnancy and financial crisis. You may have to cut down on some unnecessary expenses and focus more on saving and preparing for the months ahead.

3. If the pregnancy has been planned, it is important to save as much as possible for the following months. This can help cover much of the expenses during pregnancy. Otherwise, cutting down on expenses and budgeting your finances is necessary.

4. It is also important to know if your company offers paid maternity leave or any other compensation or support. It would be best to find out from your Human Resources Department and your superiors the answers to your questions as soon as possible. Moreover, they should be informed of your situation as well. You can also discuss with your employer some options regarding a flexible working schedule or a limited working schedule. You may also inquire as to whether you can use other paid leaves during the pregnancy period so as to allow you to continue to earn your normal salary.

5. Since pregnancy requires more time and expenses, during and more so after the pregnancy period, the family may also be open to other ways to supplement their income. During the mother’s maternity leave, she may do some freelance work which does not require much of her time and allow her to manage her time and schedule.

6. Sometimes, even the best planning and preparation may not be even enough for the coming consequences of pregnancy. There is a lot to consider for a major life change for everyone in the family. A bit of help from a professional financial advisor can help you get through the pregnancy stage without compromising your family’s income. You may also find help and support by joining a group of other expectant mothers like yourself. You could find and even offer help and support to each other. It could be the support and guidance that you need to help develop a plan and strategy on going through the process of pregnancy.

Financial planning in itself is not easy, more so with the big change of having an additional member to the family. Therefore, it is important to plan ahead and act on it as soon as possible so as to prevent having a financial disaster.


How to Manage Business Finances Effectively

Many business owners today struggle to keep their business afloat while tracking business finances. It is very important to know how to unlock more finances for the business so that you can avoid problems with the cash flow. It is necessary to learn how to balance what you owe and what you are expecting from your debtors. Below are some tips on how to manage the business finance to avoid problems.

  1. Manage cash flow. It is important that you keep your debtors under notice to follow deadlines so that you can also keep deadlines. The people who owe the business should pay on time as agreed so that you can also pay the party you owe from (if there is) like the bank or your suppliers, and keep the business running.
  2. Bookkeeping. It is the act of recording business transactions as part of accounting in the business. It is very important that you write down or you have a software that will help you track down what goes in and what goes out, how much you owe and how much you are owed with. If the business owner cannot do the records, they can hire a trusted person to do that for them.
  3. Mobile Payments. Depending on the country you are in, you can request your debtors to pay you via mobile payment to accelerate cash flow easily. This will help you get your business cash fast without delay in case the debtor is far from you. Also, some banks do allow transaction via mobile phones.
  4. Managing the business credit is important in order to find a credible bank or local credit union you can trust in times of business credit need. Most banks offer mentorship and advice in times of need. If you have a loan from them and you are not doing so well in your business, they can offer an overdraft and advices on ways you can get out of trouble. If you are not able to pay on time, let them know so that they don’t term you as a defaulter destroying your credibility. Try as much as possible to keep the terms of the loan to avoid your business rating going down.
  5. Keep your credit policy high. Remember that your business relies on the cash flow so when you borrow or give out by debt, it is important to consider deadlines to keep the business running. Cash flow is the bloodline of your business so remember to pay your creditors on time as agreed and remind your debtors to do the same.
  6. Financial Planning. When you buy goods to sell and you need to add more stock or expand, it is important to plan on the financial implications of what you are going to do. Especially expanding by adding another business branch, do a survey first and understand if the first business will be able to support the expansion before it starts making any profits to support itself.


5 Easy Ways to Manage Your Finances for a Start-up Business

Owning a start-up business is not that difficult when you have the right resources. The real tussle comes when it’s about managing finances, especially when you don’t have the appropriate skills. For A start-up company, even the slightest of mistakes in the financial department may be catastrophic. Hence, vigilance on the part of the owner is important.

But luckily for us, business experts have been kind enough to share their knowledge on the subject matter. By using these five simple tips on how to manage finances for a local start up, you are guaranteed of a stress-free business environment.

1.) Ensure you have a trusted professional. Accounting at any level proves to be problematic in case you as a business owner doesn’t have the appropriate skills. It’s always best to call a trusted expert. This may cost you, but think of the headache that will cause you, or the relief you would get by having figured out where those extra dollars are going to.

2.) Ensure that there is a clear boundary between business and personal expenditures. This is very important if you are to keep these two apart. This is simply because very few people keep a detail of their personal expenditure. Hence, if this is mixed with business expenditures, not even your accountant can explain the leaks in your accounting books.

3.) Find an appropriate account software. In case a lawyer is too expensive, you may opt to download an accounting software. It serves the same purpose it aids in the heavy lifting of making calculations. All you have to do is click or key in values.

4.) Ensure you have a bookkeeping system. This helps in keeping track of day to day transactions. This comes in handy when making evaluations after an accounting period, and it also makes it easy to prepare a cash-flow statement.

5.) Always have an appropriate payroll system. Being a start-up company, chances are that you are the only person running the affairs of the company, that is why the need for a payroll system to determine how much each of your employees should be implied. In the event of working with private contractors, you need to keep track how much you pay them in case you are required to present the data.

“Information is power” as they say and following these 5 basic guidelines on how to manage finances of a startup business may go a long way in making sure that your business does not suffer from monetary problems.