So you’ve recently had a new addition to your family? Congratulations!

I remember when I had my first child, my wife and I were so excited about the new adventure we were embarking on and how this child will have ‘the best of everything’. We did not really give much thought to the fact that she would not be working for quite some time and that the best of everything cost a hell of a lot of money, not to mention the enormous cost of the set up required for a first child which can easily run into the thousands. Sound familiar?

Some serious thought and financial planning around your everyday commitments is paramount before you ask yourselves, “do we want to make a baby?” Consider the ever increasing percentage of household income going towards mortgages alone, are you financially equipped to make this commitment? Ask yourself the following questions:

What is our current total ‘net’ household income per month? (surprisingly, many people don’t know this.)
How will this change when the baby arrives?
Break down your actual commitments. Try budgeting calculators available to you for free at www.moneysmart.gov.au
Are you getting the absolute best interest rate deal on your mortgage?
Is your mortgage structured correctly to ensure you are moving forward rather than sideways or worse still, backwards? (You can save hundreds of thousands here!)
Do you have your credit cards under control? These can really hurt you if your spending goes up and you lose 1 income.
How long can you afford to be on a decreased income? Will there be maternity leave? If so, for how long?

We all know the cost of living is never consumer friendly with new taxes (don’t get me started on these) and a fluctuating economy. As sleep deprivation and the everyday baby grind take hold, the added burden of financial stress can really cause emotional and relationship strain. I have seen this happen to couples time and time again.

Talk to someone in the know about how you can streamline your finances and increase your net disposable income. An experienced financial adviser can give you some insight and can help you put together a budget plan. There are many resources available. You can start by e-mailing your questions at www.charge-back.com.au and let our team of mortgage experts help you get the most out of your household dollar.

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