Preparing financially for an unexpected pregnancy can be tough, especially during an economic slowdown. Learn what you can do to smoothen the journey.
Congratulations, you’re expecting a new baby! However if this baby news comes as a surprise to you, the situation may be overwhelming whether for first-time parents or even experienced ones. What more if your family is currently facing financially tough times.
This article aims to help both Mom and Dad begin planning for this unexpected journey by raising your awareness about what you need to consider. With support from friends and family members you are able to pull through this.
First and foremost, let’s begin by establishing a new normal mindset. One must be willingly to make some tradeoffs (i.e. sacrifices) in exchange for practical options. Consider prioritizing needs over wants in order to do more although with less money.
#1. Review your current expenses
Yup, the first step is that simple!
List down all your expenses no matter how big or how small, and then review these expenses to separate the NEEDS from the WANTS (i.e. basic needs vs luxuries). In a financial crunch, it is necessary for you to do this in order to stretch your Ringgit further.
As you separate your expenses into these 2 categories, it is time to trim out the unnecessary wants to free up your money. Cut down your luxury spending. Some examples to consider cutting are:
- Astro subscriptions which you don’t watch 24/7
- Mobile phone and internet packages you don’t normally fully utilized
- Eating out options when you can cook at home
- Coffee that costs you RM15 when you can make one at home for only RM2
- Monthly shopping stipend for your clothing
- Takaful or Insurance plans that provide duplicate coverage with the plans you already have.
It is time to go for basic needs first until you find yourself back on track with your finances, which may take some time.