Recently I started working with some new clients, a young couple in their 30’s. Like many couples their age they’ve got a pretty decent size mortgage and two young kids. The youngest child is only 3 months old so for at least the next 2 years they are back to one income. Not surprisingly they haven’t given much thought to their financial situation lately as it’s been all nappies, feeding, lack of sleep etc.
It’s an exciting time for them as a family and I’m excited about working with them. Our first priority will be to make sure that the husband’s income is protected in case he gets sick or injured and is unable to work. The thought of what they would do without his income caused great concern for them both. This led to a discussion on other types of insurance.
The other concern they expressed was the feeling that they wouldn’t be getting ahead financially while they were on a single income. To address this concern we spent some time looking at their income and expenses to determine whether they have a surplus or deficit. By working through their financial position not just this year but in detail over the next ten years we could get a clearer picture of where they are headed. By developing a plan and committing to it they are now comfortable they are on the right track.
Of course there was plenty more to work on – debt repayment strategy, saving for children’s education, putting wills in place…