Babies change everything, even your finances. Having a baby can get quite expensive. You may not believe it -- after all, they are quite tiny -- yet, they are able to really hit your wallet hard.

When it comes to money, it is always easier to be prepared and plan ahead. Start planning for the purchases you will need to make for your baby as soon as possible. Go ahead and revise your budget to include both one-time expenses, such as a crib and car seat, and extended expenses, such as health care, diapers and baby food.

Chances are that this is your first time at a budget. Go ahead and start living by it well before the baby arrives. This will prepare you for life with baby by making your finances easier to manage. You won't have to worry if you have money for diapers if you have already set some aside.

To take advantage of tax benefits and insurance, you will need a Social Security Number for your child. This will also be required to open a bank account or investment account for your child.

The easiest way to apply for your child's Social Security Number is at the hospital before you leave. You will need both parent's Social Security Numbers in order to apply. The hospital will send the information to the Social Security Administration for you. You will receive the card in the mail shortly, so be on the watch out for it.

One of the top things you will need to do is review your insurance needs. You will need to reevaluate both your life and health insurance coverage. Over the years, a child can add hundreds of dollars of expenses to your budget. In the case of your death, your life insurance will need to be adequate to cover these expenses. Select the amount of coverage that will pay the mortgage, cover living and child care expenses and even provide a college fund for your children.

If you can afford the premiums, you should have disability insurance. A young parent is more likely to become disabled than to die. Disability insurance helps replace a part of your income until you are well again.

With health care, a baby is a qualifying event which can be added at any time. Make sure you add the baby as soon as possible to avoid any bills being turned down by your insurance company. Believe me, the hospital will send those out as soon as possible.

You will need to revise your W-4 to reflect the additional dependent. This will add a little more money to your take home pay.

Sit down and prepare a will. Take the time to name a guardian for your child in case something happens to you. This is especially important if your family does not live near you. If something happens to you and there is no named guardian, the state could determine who gets to take care of your child. If you have a guardian, the child will go directly to who you want him or her to.

Babies change more than just your nightime sleep schedule -- they change every aspect of your life. I remember the time I thought that a small little baby couldn't cost that much. After just two years, I realize I was very mistaken. There are many expenses to account for. If you are prepared, you won't have to worry about money when you haven't slept for a week.