This article however is not that about that kind of pain. This is about helping you manage the ever increasing need for money in your household now.  Very soon after we find out we are about to have the greatest miracle enter our lives, we start thinking. Painfully aware of rising costs, we wonder about how much it will cost to have our little Angel, what do schools cost? Have you seen how much nappies cost? We will need a Nanny to love and care for our Angel… and so it goes on.

Wouldn’t be nice if someone could give you a few basic steps to follow to help towards managing this?

Well here it is. Four steps, easy to follow and practical whilst it could actually make a huge difference in time to come.

P.A.I.N

P for Pamper Pot

Save a small amount every month – put it in your ‘Cookie Jar’ or in the bank if you want. Just make sure it is an affordable amount and you continue adding to it EVERY month.

This “money pot” is there for two reasons only. The first is for emergency funds like when Angel is sick and you need to pay the Nanny to be there whilst you go to work – and of course you didn’t budget for this!  The second and very important reason is to spoil YOU with some ME time. Every 3 or 4 months you make a ‘date night’ or whatever is ‘just for you’ and you draw money from your Pamper Pot. This will leave you and your relationship revived whilst there is no feelings of guilt for using your money.

A for Assurance

There are so many policies and products in the market now. Research all of them and then discuss the options with a qualified advisor to ensure you get the correct one for your family and your needs.

It is not about taking the first product that comes your way but to learn more, ask questions – not just to the Financial Advisor but to yourself and each other. What are your expectations of the future, do you want Angel to go to a private school etc.? Life policies are there to secure your family in the event of your death but what a lot of families do not consider is the cost of a ‘stay-at-home parent’. What would the cost be to ‘replace’ the functions of this parent in the event of his/her death? Does the other parent have the means to cover this? If not, there would be a need for life cover. This is the same way you would look at protecting your income, education and investments. Talk to each other to understand what each of you are expecting in the event of one of you not being there.

I for Information

Be aware and informed of costs of various products, budget for the future furniture needs. Stay informed on what is a gimmick and what would really benefit you. As a Mom of a gorgeous 5 year old daughter, I have often said “If only I knew!” Find out from other parents how long they used the cot, the pram, the baby bath and so on and so on. Then consider rather obtaining some of these second hand. There are gorgeous cots in perfect condition for half the price out there. Just buy a new mattress. Half the price spent and Angel still is safe and happy. Another good example is a feeding chair. This is not used for very long but they cost a lot. This advice goes a long way with regards to Education Policies in specific as well. These products keep changing, stay informed. Informed decisions do lead to prudent spending!

N is for Need versus Want

We all want the best new products or prams but after looking at the previous point rather consider making a list of everything you would need for Angel. Then start separating the ‘need’ from the ‘want’ on this list. We WANT a brand new baby seat but the infant one gets used for a very short time, so do we really NEED a new one? We WANT  to dress Angel in many cute outfits but does Angel need to be in more than a nappy and a little vest in the heat of summer (at home of course)?

A great way to work out your Need from your Want on the list is to ask friends who are already parents. They will easily be able to tell you just how long they actually used something or how little their Angel got to wear those gorgeous outfits before it was too small.

Go onto websites that sell second hand products, appliances and furniture. This could be a great way of ‘fixing up’ Angel’s room just the way you like it whilst staying within your budget.

These are 4 very simple steps to making your money last longer and possibly even leaving something in the bank for you to invest in your and Angel’s future!