Just found out you are happily pregnant? Congratulations!No doubt your emotions are running high and there are all sorts of questions and thoughts going through your head… but let’s focus on the money side of things for a minute.
Kids cost money. Future schooling will cost money.
Some parents will start saving early after the child is born, to cover the cost of future schooling for example, but what about in the early days? What about now? What about doctor visits? What about baby room furniture? Clothes? Nappies?
A friend of mine, a Mother of two grown up children, shared with me possibly one of the best money tips I have ever come across for those that are ‘expecting’. She and her husband used it themselves and it served them well.
“Drop to one income NOW, sooner rather than later!”
As a couple, living together in a modern world, you would most likely be a ‘double income household’, meaning ‘He’ works and ‘She’ works. Both earn an income. In most cases, typically ‘She’ will stop work after having a baby (at least for a short while).
Most couples will generally continue using both ‘His’ and ‘Her’ incomes for day to day expenses, as per normal, throughout the pregnancy. Nothing changes UNTIL the baby arrives.
However, smart people, like my friend, will instead choose to start living off only ‘His’ income now, straight away, BEFORE the baby arrives, from the day they find out that they are expecting (or as early as possible) and will start saving ‘Her’ income.
After all in 9 months time, you WILL be living off only ‘His’ income for a period of time, guaranteed! That period of time could be a few months, to a few years! So you may as well get used to it now and avoid a monetary shock when you welcome that little bundle of joy into the world. Whilst you cannot control everything throughout pregnancy and childhood, you can control your finances and reduce the stress on you and your new family.
Will you be able to cover your current living expenses, using just one income? Test trial it now.
If you cannot manage on just one income now, then you need to reduce your personal expenses as a couple NOW and get ready for how it WILL BE…. in 9 months time!
Disclaimer: This information is general in nature. It is based on the knowledge and experiences of the author and others and not intended to be taken as financial advice. It does not take into account the objectives, financial situation or needs of you or any other particular person. You need to consider your financial situation and needs before making any decisions based on the information. You may have to modify the information and do further research, for it to suit your personal financial situation. Therefore, before acting on the information, it is recommended that you consider its appropriateness to your circumstances or consult a financial adviser to assist you in doing this.