Preparing Financially for Life's Big Moments

This month, I aim to keep this article brief, as I’m currently cradling a 9-pound blessing in one arm—my wife and I welcomed our second child into the world at the beginning of November. 

In the lead-up to the delivery, our minds were filled with preparations. We considered how to prepare our home for another little one. It’s remarkable how much “stuff” small children require! We also thought about shifting household responsibilities and how to emotionally prepare our oldest son for the reality that Mom and Dad’s attention may not always be solely on him. 

I believe in practicing what you preach, especially when it comes to finances. My wife and I dedicated time to discussing how our financial landscape would change in both the immediate and long-term future. We held about three to four “Money Dates” (more on these in my February article) during which we talked about how our expenses would evolve. 

We anticipated increases in our expenses, particularly those associated with childcare and the medical costs related to the birth itself. However, our discussions also unearthed some less obvious costs, such as a spike in take-out/restaurant expenses during the first month (when sleep becomes a luxury and you’re too tired to do anything else) and the need to outsource some household chores typically managed by one of us on Saturdays while the other watches the kids. 

Looking further ahead, we realized that, for the next three years, as both of our children are in daycare, our expenses would likely peak. To protect our most valuable wealth-building tool—our income—we decided to secure an excess long-term disability policy. This choice gives us peace of mind, knowing we can maintain our home (and the help we plan to hire) while ensuring our children continue to attend a great school. 

These are just a few examples of the adjustments we've made. Life events come in many shapes and sizes—whether it's the birth of a child, the sale of a business, a family member falling ill, a home renovation, or purchasing a car after many years. 

Such events may require adjustments to your estate plan, investment strategy, tax considerations, or changes to your Money Map (more to come on this topic in a future article). 

When life changes occur, I encourage you to review your financial situation carefully. Have conversations with your partner. Identify what needs adjustment, and if you feel uncertain, now might be the perfect time to partner with someone who can offer guidance. 

Whatever life event you’re experiencing as you read this, I wish you all the best.