The pitter patter of little feet signals the start of a new era in your strategy. Generally there is a reduced income, but increased expenses, and far less free time for everyone. If both new parents were working, it is likely that one income will be lost for a while – possibly quite a long while. Those cute little gurgling faces aren’t just mouths to feed, they signal a great shift in priority. Establishing strategies to ensure that in years to come you will be able to meet education, travel or other commitments for your family means planning years, if not decades in advance.
Often there is a new home required as more space is needed and balancing reduced income, increased expenses (rent, mortgage, new cars, clothing, baby needs and more) – all require a well thought through strategy.
It’s about this time that you will be thinking of rebalancing your super contributions and especially insurance, as the consequences of injury or death will be far greater than when you were single or recently married.
You will want to revisit your will with each precious new bundle of joy and consider how everything you have worked for will be distributed.
As your children grow and your career progresses you may find yourself in the position of earning more, but those enjoyable occasions (like family holidays) double or quadruple in cost. Planning becomes far more important than in those carefree, single or married days (that you are now looking back on rather fondly).
“Now is the time to think not only about your future but also plan for your children’s future.”
Watch this video and learn why it is important to see a financial adviser at this stage in life.