As a new mom that was working before the baby arrived, you will now experience a waiting period and then only receive 55% of what you were previously earning, that is a significant impact to your earnings. You will be capped at a max of $413/week, so if you are in a very high income bracket, your income will be noticeably reduced. As the mother you are going to lose 45% of your income, and at the same time, expenses have risen $200/month on consumables (diapers, food, specialty products for baby!). Although the birth of your new baby is a time of great joy, it helps enhance your joy if you are not worried about your financial situation. Here are some suggestions for coping with the income loss. These will obviously depend on your budget and individual situations, but if you are prepared in a small way, it will alleviate the burden.

TIP

• If either you or your partner get a raise prior to baby's arrival, put the extra amount on your paycheque in a separate account, and continue to live on the salary that you've already been accustomed to.
• Try to live on only one income and bank the other in preparation for the income loss.
• Purchase some of the larger ticket items from family, friends, sales (checking safety standards of course) in advance, so it is not a large dent on your budget right around the time of the income shortage.
• Develop a budget and stick to it.
• Try to make lifestyle changes prior to baby's arrival. (There will be significant lifestyle changes anyway, so start early) Try to cut back on unnecessary expenses earlier on, and save the extra money. This will assist in the purchasing of baby needs.
• Although we all want the very best for our babies, there is nothing wrong with utilizing hand me downs and consignment stores for baby's needs. Your baby will not know the difference.
• If you want to make any changes to your credit cards, mortgage etc, do so BEFORE you go on maternity leave. With an entire year off, you don't know if you will go back to work, and if you choose to stay home, it will be difficult to make these changes with only one income to service the debt.
• Take advantage of sales before and after baby is born.
• Pay off unnecessary credit card debt, or see about consolidating/reducing the amount of debt carried.
• Talk to other families about cost saving tips that have been gleaned from others in your very situation.

Have things like wills, life insurance, and savings plans budgeted for prior to the reduction in income. These are necessities, and if already in place, it will be a priority. If you are experiencing difficulty, contact a Credit Counseling Agency. They can assist before a problem becomes too large to handle. Look under Credit Counseling in the Yellow Pages**

There are literally hundreds of places to go if you want tips. Parenting magazines, friends and family. Most of all, trust your judgement too.