Planning for a Child and Staying At Home

I constantly hearing people telling me this:

“Hey, you stay at home, your girl go JG, can go swimming and then can buy many toys for her. She is so lucky.”

So Am I.

To stay at home, you need to plan and to me, planning starting immediately when I have met my Mr Right. Of course, there will be hiccups along the way, but being financially prudent  should be the key.

I am not an expert in Financial Planning but I guess I am still better off in term of having myself well guard toward crisis.

I brought 3 medical insurance policies (my sister brought my mum’s medical policy) for my parents immediately I started work (that is more than 10 over years back) and these have well guarded us from one very big crisis happened 3 years ago.

My dad had an accident on road and eventually led him to the immobile. Luckily we have some policies on hand to bring us thru the crisis and also we were already all grown up. We fought the case and we won. My dad’s daily expenses are being covered by the insurance of the party that caused his mishap. (Remember my family got a maid. It is definitely not possible to lead this type of lifestyle if I am not working but luckily we went on to fight for our right in the eye of a law.)

And since we got medical policy for our parents, whenever my dad is hospitalised; we didn’t even need to pay a single cent for his medical cost because it is all covered.

Protection!

I got married shortly after I know D and we started to save up. We allocated a part of our saving to a joint account (Oh, these doesn’t work for everyone I guess.) and we both agree, we will use the money for our child in the future.

Me being a spender, and D is a saver, I find hard to save initially but then knowing the fact that (I guess many dating couples will plan more about their future when they decided to tied a knot.) I will stop working and stay at home for a period of time (which I don’t know when I will need to go back to work), I forced myself to save along the way.

This indeed comes handy when I stop working.

Obviously, I am driving the importance of saving here.

With those plans in place, it is still not enough. We also need to know how to make our money work for us.

For wealth accumulation, we put our money into unit trust, insurances and structure deposit (but not share, can consider Bond). I hedge the exchange rate too. (Or you can save in foreign currency now.) I need to pay my Accountancy membership to ACCA every year. So now, the pound is at extremely low, I decided to buy some pound to keep. In any case Pound still fall lower than the rate I have already hedged, I will pay my subscription via credit card then.

Sound well planned?

With above in place, we are also be very prudent over our finance. Although we stay in Prime estate but this flat was brought more than 10 years back which is so much cheaper than The Peak now. Plus we don’t drive so this will add another saving of 1K easily.

As I already mentioned I am not an expert, this is how we plan for our future with only ONE income. We are still exposed ourselves to unknown risk like company restructuring, financial market changes & sickness.

We are NOT RICH but then we are consider prepared for Yvette’s future and taking care of our current need. Alas it will not be sufficient for old age. That’s why I feel it is time for me to go and work now. But I really have many constraints to move forward. That’s why I am very troubled now too. 😦

Money enough not enough voice down to personal lifestyle and commitment. Constantly looking at our own financial need is what we need to review from time to time and I hope you are doing your own review as time passes.

Advertisements

3 thoughts on “Planning for a Child and Staying At Home

  1. Indeed, to be a SAHM, the family finances need to be carefully worked out. This is important for family harmony too.

    As for insurance, I also ensure that hubby is very well-insured against all major risks — death, disability, critical illness, accident, medical & travel. Reason: We want to ensure I can still stay at home to take care of kids & him when he’s down / out. It’s even more important for me not to be forced to work during a family crisis.

    Doing up a Will is also be important. In case of a joint death (super touch wood), we want to ensure we decide who to be guardian for our kids and trustee of the money we leave behind. Without a Will, the court will decide on the guardian, whom may not be our preferred choice.

    As you mentioned, savings and careful investments to accumulate for old age are also important. People can live for sooooo long nowadays!!! And medical advancement can keep people alive while being very ill for years. Quite scary indeed.

    Hope you can solve the dilemma of returning to the workforce soon. All the best! 🙂

    • Hey, thanks.

      We do have a Will but it is far away before Yvette was born. (I very Kiasi one lor!!!) We will finalize one before the year end. Sadly we keep procrastinating this and yet it is always on our must do list!

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s