Mamma Wants Her Freedom

Hi Scott,

My partner and I have four houses -- three are investments. Together they are worth about $1.55 million, and we owe about $1.34 million on them. We each earn around $145,000 a year and each have about $175,000 in super. I have $52,000 in savings and he has about $15,000 (with two uni-aged children that he still heavily supports). We keep our finances separate. I want to have a baby in 2017 (I am 35) but not lose my independent position. How can I ensure smooth financial sailing?

Nat

Hi Nat,

Why are you planning on having a baby with a bloke when neither of you is prepared to share BSB numbers?

Okay, let’s sweep that elephant to one side for a moment and talk money.On your current income you’ll qualify for 18 weeks of paid parental leave (you may still be able to double-dip if your employer offers any entitlements, though that depends on what Derryn Hinch and his mates decide). Combine that with your $52,000 in savings and your ability to eventually go back to work, and you have the first couple of years sorted.

Now let’s get back to the elephant.

You’ve admitted that you are concerned about the risk of losing your financial independence. Good insight. Most women don’t fully understand the financial ramifications of their predicament until they’re knee-deep in nappies and suffering sleep deprivation.

So before he gets to the fun part of ‘creating’ the baby, you need to sit down together and address your concerns. Start the conversation off like this: “Honey, you need to understand that I’m going to have to take time out of my career and take a big pay cut so I can look after our baby.”

Understand this is not about your financial independence -- it’s about your financial security. In other words, you’re becoming a family so you need to tackle it together.

Scott