1.  Adjust your family budget
Even before baby arrives, budget for cleaning help, insurance and confinement needs. Start setting aside a portion of your income for baby’s future. Adjust your budget if you plan to stop work, and save ahead to make up for lost income. Start living within your means – instead of splurging on a big holiday, consider nearby destinations that won’t put a dent in your finances. Be mindful of “essential” and “non-essential” expenses. Most of all, pace yourself when making baby buys – “hand-me-downs” work just as well. Trust  us, baby won’t know the difference.

2. Insure your life and protect your income
Who wants to think about death, especially when you have a new life in the family? But getting a life policy and buying income protection is crucial in ensuring that your children’s standard of living will not be compromised before they come of age, should anything happen to you. 

3. Write a will 
A will is a must once you have a child in the picture, stresses Eunice Tan, a director at Cornerstone Planners which offers independent financial planning services. You should also appoint a legal guardian, trustee and executor, otherwise you’ll have no say in who looks after them or handles the finances, if you and your spouse die together. You’ll need to fork out around $200 for a lawyer to draw the will up for you. Or if you’re feeling brave, you can write your own will. But make sure that your intentions are clearly stated and that the will is properly witnessed by two parties who are not the beneficiaries in your will. Find DIY will-writing templates online at www.lifeisgreat.com.sg/apps/will/will.htm. After preparing your will, let your family and your executor know that you have a will and where you’ve kept it. More information on making a will can be found at www.lawsociety.org.sg/awareness/making_a_will.htm. 

4. Remortgage
Switching your home mortgage to one with a lower interest rate is the biggest single money-saving action you can make. Talk to your current bank about improving your deal, and shop around for better deals elsewhere. In addition, make sure that all your loans are covered if you live in a private property – this means having the assets to cover your loan amount, Tan advises. This ensures that your kids will not need to take over any loans in the event of both parents’ death. You can also take up a mortgage protection policy, which ensures that your loved ones have a roof over their heads, in the event of your death or permanent disability. HDB dwellers are similarly covered under the Home Protection Scheme.  

5. Grow your money
Early financial planning is crucial. Consider your lifestyle, earning power and risk profile before deciding on your investment portfolio. You’ll have to allocate your assets and decide what mix of equities, bonds, property and cash you’re comfortable with. Start by opening a savings account – it’s the safest and most liquid option. You never know what rainy days lie ahead.