Wen, 35, and Nalini, 32, have just welcomed their second baby and it’s a joyous time. Here’s how the couple managed on one salary while also investing in their children’s future.
Like a most new parents, Wen and Nalini are sleep deprived and time poor. The couple are currently on one salary as Nalini is staying home for the next 12 months to look after the new baby and their young son. Thankfully, Wen is on a decent income, but the couple still needs to stretch every dollar, particularly as they are also looking to build a nest egg for their children’s future.
Wen and Nalini drew up a budget to understand where they could save on expenses. It allowed them to identify some quick wins, such as cancelling subscriptions they no longer use, which freed up money to put towards savings and investments.
Wen and Nalini want to be able to help their kids by giving them a lump sum when they become adults. When they discovered Nalini was pregnant with their first child, the couple set up an Active Saver account, which they grew with automatic monthly contributions from their day-to-day Freedom Saver account. While they were keen to implement a similar strategy for their second child, Wen and Nalini recognised there might be other ways to grow their savings.
The couple saw a licensed financial adviser, who suggested some options to stretch their savings dollars and set the family up financially. The adviser recommended they consider:
By making small sacrifices now, Wen and Nalini are making a big difference to their future. “We barely miss the cuts we made, but I feel much more confident now we’ve got a plan in place,” Nalini says.
With so many new expenses, saving can be hard when you’re a new parent. Listed below are some tips to set you on your way.
