Here’s how to smooth your journey to fiscal fitness.
Raising a child in pricey Singapore is definitely not for the faint-hearted. But cost should only be one of the factors to consider if you’re thinking of expanding your family.
Plan early
Fiscal planning can stump anyone. So you need to start financial planning as early as possible, even before junior arrives, according to the financial experts. In fact, it is important to work out the finances for marriage and building a family. A big problem newly-weds often overlook is buying a first home that is beyond their means, giving rise to a financial burden that could cause tension. Also, because many couples enjoy dual incomes, they become accustomed to an extravagant lifestyle. This includes pricey home renovations, lavish dining, costly hobbies, buying luxury cars and expensive overseas trips. They do this at the expense of medium to long-term financial goals, such as family and retirement planning.
Breaking it into bite size
While it is difficult to have a complete financial plan before your baby’s advent, the best way is to break it into bite-sized pieces and plan each stage in advance, one at a time. You need to consider the kind of living that you want, the housing and the upkeep of it, your children and their education, your retirement, caring for aged parents, and so on. A proper financial plan would help provide a safeguard to most, if not all, of these areas. Other factors to consider are: Whether as a couple you should carry on with a dual income arrangement, the rates for a primary caregiver and how much it would cost to have more than one child.
Review your plan regularly
Most parents love their children so much that they are eager to put aside a significant sum of money for their kids’ education. Some are even willing to sacrifice their own personal financial goals, such as retirement planning, for the sake of their children’s future. However, it is also important for parents to take care of themselves. A regular comprehensive financial review with a financial consultant is helpful as it will ensure you do not compromise other important financial goals.
Besides the pressures of ensuring that their children enjoy the best, couples sometimes have to contend with other issues, such as different values towards money and money management styles. If not addressed, this could pose a serious strain to a relationship.