If every couple waited until they had enough money to have children, the world would be missing out. There are countless examples of influential people – Oprah Winfrey, J.K. Rowling, Stephen King, Jim Carrey or Tom Cruise, for instance – who were born into families that fell on financial hard times. Similarly, you shouldn’t let finances get in the way of starting a family if it’s something that you really want. Of course, it’s never a bad idea to spend some time considering your financial situation before you have kids.

Create a New Budget

Children will add new expenses to your current budget. If you don’t already have a set monthly budget, it’s time to lay one out. You can count on adding roughly $500 per month in child-related expenses to the amount you usually spend per month. If you don’t think there’s room for this additional spending in your budget, you need to figure out where this money is going to come from. What can you afford to give up on a month-to-month basis? Keep in mind that your lifestyle may automatically change when you have a child – you might eat out less or take fewer weekend trips. You can try to prepare yourself by talking to a friend who has recently had a child or using an online cost calculator to tailor costs to your situation.

Will You Stay Home?

If you decide not to go back to work following the birth of your child, this will also change how you evaluate your finances. You will go from relying on two incomes to one, which can be a difficult transition. In deciding to stay home, there are other financial questions to consider, for instance, would it be a temporary or long-term move? Do you have savings to fall back on? Would you lose your health insurance? Finally, how much would you actually save on childcare costs if you were to stay home? If you’re not sure exactly how living on only one income is going to affect you, your pregnancy is a great time to practice. Save all of your income and try to live solely off your partner’s. Not only is this a great way to get some money in the bank before the baby arrives, it will also help you to understand the sacrifices you will have to make if you choose not to go back to work.

Think Ahead

In addition to ensuring that you have enough money to support your child, you should also be thinking about other financial responsibilities. First and foremost, you should be putting aside money for your retirement.

If that’s already up and running, your next move is to start saving for your child’s education. Money for your child’s college degree comes second because there are other potential sources of financial aid available, such as scholarships or loans. When it comes to your retirement, if you’re not saving, you’ll have a hard time scraping the money together when you reach retirement age. Keep in mind that there may never be a perfect time to start a family, but you can help yourself prepare by understanding the costs and making smart financial decisions to plan for your future.