The biggest part to having children and making sure we can afford them is to make sure you're about as planned as you can be. Sometimes that's not possible but, for those who are meticulous about planning their future, Ben talks about going from two incomes to one and shares his spreadsheet information to make sure you stay ahead while you're enjoying your children.
Part one of the plan
Saving for children’s cost is tricky with high cost of living. But there are two parts to making sure you are ready to drop an income and enjoy maternity (or paternity) leave without being stressed about finances.
Part one involves finding the funds for any upfront expenses. You can safely assume that baby expenses, taking into account medical costs, equipment and incidentals will be between $5000 -$10000, but of course, you can flex that with a level of frugality.
To properly set goals, Ben likes to use tools like the Money Smart goal saver calculator and adjust it to suit your family, income and needs. Have a play and get a feel for what is possible with your money.
Keep a budget to ensure you’re able to save your goals
Part two of the plan
The second part is more complicated – what you do post maternity leave.
Ben likes to go ‘old school’ and set up a spreadsheet, thankfully he shares this with us and takes us through, column by column to help us keep track.
He talks about how much money in your bank against your anticipated costs. You do need to know how much is going in and out so make sure you’re well acquainted with your budget.
The biggest call outs Ben has:
- Continue looking back to the budget and adjust as you need
- Set priorities
- Plan ahead - don’t wait for the month before you go on leave to start planning. If you can, think 12 or even 24 months
Ben Nash. Financial Adviser and the founder of Pivot Wealth, helping people invest smarter so they can create a life not limited by money.
He runs regular live online events which you can check out here. | Follow Ben on TikTok | Linkedin | Instagram | Facebook
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Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.
