With life as a parent being a series of chapters with its own joys, challenges, and financial demands, ensuring that we prepare for each new phase in a financial sense is more than just about budgeting, but what is it that we can do to get ready for what’s next beyond the typical advice? Here’s a few things to bear in mind:

Get Professional Support for Major Life Changes

Whether you’re selling your home, upsizing, or relocating, the stress can be too much to bear by yourself. This is why, if you are looking to prepare for a big move, expert support like real estate agents Harper Macleod LLP can be invaluable because if you find someone that can market the property, arrange surveys and viewings, and handle all the legalities, this transition is going to be far smoother. Therefore, you can focus on your family and future plans, confident that your biggest asset is in safe hands.

A Flexible Financial Safety Net

An emergency fund is essential, but going a step further by making your safety net adaptable is crucial. It could be career breaks, unexpected expenses, and anything else that you really don’t want to think about! An ideal safety net is at least three to six months’ living costs in an easy-to-access account, but don’t forget to review those expenditures, like your insurance policies, because this can ensure your family is protected if circumstances change. Getting liquidity and peace of mind is a hard balance, but a critical one.

Balancing Saving and Spending

Many people fall into the trap of either overspending or oversaving, but the healthiest approach is a balanced one where you save enough to feel secure and independent, but not depriving yourself of the small joys, and this mindset is critical when you’re transitioning to a new phase, whether it’s moving house or returning to work, where you need to be cautious and enjoy life.

Investing in Yourself and Your Skills

Preparing for the next financial phase isn’t just about money, but about increasing your earning power. What does it really take to upskill yourself? Sometimes we just have to consider potential future regrets when making financial decisions. Asking yourself if you will regret not taking this opportunity or regret not having a safety net can help you prepare for big changes, like investing in your education or even starting a business.

Set Aside Social Comparison

The final point for you to get a hold of your finances is about making sure that you don’t set unrealistic expectations and make you feel inadequate about your financial situation. Focus on your own values and goals rather than thinking you need to keep up with others, which is particularly important for parents who feel the pressure to provide or to perform in certain ways. It can be hard when kids come home saying that their friends have everything, but really you’ve got to separate your mindset from this superficial inadequacy. 

Ultimately, there’s no universal right way to manage money, because your background, goals, and family situation are the things that matter the most, so tailor your preparations for the next phase based on what works for you, and not what others say is best!